December 31, 2024 (press release) –
The Saskatchewan Affordability Act and ongoing annual indexation are two ways the Government of Saskatchewan is taking action to ensure the province remains the most affordable place in Canada.
"Every year our government adjusts the provincial income tax brackets and basic tax credits to protect Saskatchewan citizens from the rising cost of inflation, which is also known as indexation," Deputy Premier and Finance Minister Jim Reiter said. "This provides safeguards against the inflationary pressures that would otherwise push taxpayers into higher tax brackets and reduce the actual value of tax credits. Given the current affordability concerns, it is important we take these steps to help make life more affordable for the people of Saskatchewan."
The level of indexation in 2025 will be 2.7 per cent, which matches the annual average national inflation rate from October 2023 to September 2024. In 2025, Saskatchewan residents will see $40.5 million in annual tax savings from indexation.
"A family of four will not pay any Saskatchewan income tax on the first $63,200 of their income, the highest tax-free threshold for a family of four in Canada," Reiter said. "We have more than doubled this tax-free amount during our time in government, which continues to provide significant savings for people throughout the province and helps make life more affordable."
Indexation was also incorporated into The Saskatchewan Affordability Act, which was recently passed in the Legislative Assembly. The Act reduced personal income tax in Saskatchewan by increasing rates for the basic personal, spousal and child exemptions, as well as the seniors supplement, by $500 a year for the next four years on top of annual indexation adjustments.
The Act provides significant benefits to pensioners and others who are on fixed incomes by indexing and increasing the rate of the Saskatchewan Low-Income Tax Credit, while persons with disabilities, as well as their caregivers, will also benefit from increased tax credits.
The commitments in The Saskatchewan Affordability Act are in addition to the more than $2 billion in affordability measures already included in each and every provincial budget.
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