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By CKOM News

Tax Savings

Province promises income tax savings in 2023 through indexation

Dec 29, 2022 | 5:22 PM

As the cost of living rises, the Saskatchewan government is promising tax savings in 2023 through indexation of the provincial personal income tax.

According to the Ministry of Finance, the level of indexation for provincial personal income tax will be 6.3 per cent in 2023, which the ministry said matches the average national inflation rate from October, 2021 to September, 2022.

“Indexation will result in Saskatchewan residents seeing $94.5 million in annual income tax savings,” the ministry said in a statement.

In 2023, the ministry said indexation will save an individual earning $25,000 an average of $125. For a family of four with a combined income of $75,000, the average savings will add up to $371, and if that family’s combined income is $100,000, the average savings will total $362, the ministry added.

Saskatchewan, the finance ministry said, boasts some of the lowest personal taxes in Canada, and exemptions introduced since 2007 have removed more than 112,000 people from the provincial income tax roll. A family of four now pays no provincial income tax on its first $56,550 of combined income, the ministry said, which compares well to 2007 when provincial income tax took a bite out of combined income over $26,150 for a family of four.

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Finance Minister Donna Harpauer said Saskatchewan is expected to lead Canada in economic growth this year and next, and resource revenue has allowed the government to help with affordability while paying down debt.

“Our government recognizes that costs have risen due to inflation, and we are committed to taking steps to help keep life affordable for Saskatchewan people,” Harpauer said in a statement.