A series of new and returning provincial income tax credits and other tax-reduction initiatives will help make life more affordable for Saskatchewan people in the new year.
All Saskatchewan income tax brackets and tax credit amounts will once again be indexed in 2021, saving the province’s taxpayers an estimated $15 million. The level of indexation in 2021 will be 1.0 per cent, matching the national rate of inflation.
“We are pleased to resume the indexation of income tax brackets and tax credit amounts in 2021,” Deputy Premier and Finance Minister Donna Harpauer said. “Indexation protects Saskatchewan taxpayers from bracket creep, and helps keep the tax system fair, competitive and affordable.”
Saskatchewan families with children enrolled in sports, arts and cultural activities will also be able to claim the Active Families Benefit once again on their 2021 taxes.
“Restarting the Active Families Benefit to make children’s activities more affordable was a key election commitment of our government,” Harpauer said. “As promised, the Active Families Benefit will provide a non-refundable tax credit of $150 per year per child to eligible families. Families of children with a disability will receive an additional $50, for a total tax credit of $200 per year per child.”
The restarting of the Active Families Benefit will be part of the 2021-22 Budget and will be retroactive to January 1, 2021. Parents who enroll their children in sports, arts and cultural activities in the new year are therefore reminded to keep their receipts so they may claim the benefit with their 2021 tax filings.
Saskatchewan residents who are planning to renovate their homes may also be able to claim the recently announced Saskatchewan Home Renovation Tax Credit.
Under this non-refundable tax credit, Saskatchewan homeowners may save up to $1,155 in provincial income tax in 2021 by claiming a 10.5 per cent tax credit on up to $11,000 of eligible home renovation expenses incurred between October 1, 2020 and December 31, 2021.
A further $945 in savings may be claimed in 2022 in respect of eligible expenses incurred between January 1, 2022 and December 31, 2022. Eligible expenses include the cost of permits, contractor labour and professional services, building materials, fixtures and equipment rentals.
For more information about the Home Renovation Tax Credit, including examples of eligible renovation expenses, please visit www.saskatchewan.ca/home-renovation-tax-credit or call 1-800-667-6102 (toll free), or email email@example.com.