The Saskatchewan government said taxpayers in the province will save an estimated $9 million in 2017 due to indexation.
Income tax brackets and tax credit amounts will rise 1.4 per cent this year, matching the national rate of inflation.
“Indexation helps keep taxes in Saskatchewan low by protecting Saskatchewan people from ‘bracket creep,’” Finance Minister Kevin Doherty said in a statement.
“Our government is committed to keeping Saskatchewan’s tax system fair and competitive, and yearly indexation is part of an array of measures aimed at accomplishing just that.”
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The increase means an individual will not pay provincial income tax on their first $19,490 of income.
For a family of four, no provincial income tax will be paid on the first $50,495 of income. Officials said that is the highest tax-free income threshold in the country for a family of four.
“Over the period of 2008-2017, these personal income tax reductions will have provided a Saskatchewan family of four earning $50,000 in income with total income tax savings amounting to more than $23,000,” Doherty stated.
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According to Doherty, various personal income tax deductions since 2008 have resulted in approximately 112,000 low-income people being removed for the tax roll.
Officials said some of those measures include increasing exemption amounts, introducing a new low-income tax credit and bringing in a new first-time homebuyers tax credit.
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