Province touts affordability incentives for Sask. residents in 2024

The province is hoping families will have the chance to keep some money in their pockets in 2024.

In a release from the Government of Saskatchewan on Friday morning, the province touted low personal taxes and indexation as measures the provincial government is taking to make life more affordable for Saskatchewan people next year.

According to the province’s projections shared by finance minister, Donna Harpauer, a family of four with an annual income of $75,000 can expect to save more than $300 in 2024 due to indexing personal income tax.

That is on top of the $400 each family will save through the province’s halt on collecting the federal carbon tax on home heating.

Indexation, according to the release, protects against bracket creep — the automatic increases in tax caused by inflation.

“Combined with our government’s commitment to keep personal taxes low, indexation is an important component of affordability that is among over $2 billion of affordability measures built into our budget each year,” Harpauer said.

Harpauer called Saskatchewan the most affordable province to live in Canada for a family of four, when taxes, utilities and housing costs are considered.

She said a family of four now will pay no income tax on their first $59,475 of income.

“When our government took office, a family of four started paying provincial income tax at $26,150 of income,” Harpauer explained. “Reductions our government introduced have more than doubled the tax-free threshold.”

Through the indexing of the provincial Personal Income Tax system, the release from the province stated that the real value of personal tax credits and the income tax brackets will be preserved, because they rise with inflation.

“Indexation protects taxpayers from automatic tax increases that would otherwise occur when their incomes rise with inflation,” the release explained. The level of indexation in 2024 will be just under 5 per cent, at 4.7, matching the annual average national inflation rate from October 2022 to September 2023.

Indexation can also preserve the value of benefits people receive, like the Saskatchewan Low-Income Tax Credit.

Saskatchewan residents, according to the release from the province, will see $70.5 million in annual income tax savings. In 2024, Saskatchewan taxpayers should see a total of about $355 million saved as a combined effect of the indexation of the tax system from 2007 through 2024.

The provincial release also touted Saskatchewan as having among the lowest personal taxes in Canada, with Personal Income Tax exemptions removing more than 112,000 people from Saskatchewan’s income tax roll and reductions since 2007 providing more than $830 million in annual income tax savings to Saskatchewan people.

The Active Families Benefit will continue to be available for families in the province with children enrolled in sports, arts and cultural activities. The refundable tax credit of $150 annually per child to eligible families, was reinstated in 2021/ Families of children with a disability will receive an additional $50 on that tax credit per child.

Harpauer said these benefits and tax credits, combined with housing costs, utility rates, indexation and personal taxes show the province’s commitment to “helping keep life affordable for Saskatchewan people.”