On the final day of 2020, the provincial government has announced that it will be launching several new and returning income tax credit programs in 2021 to make life more affordable for Saskatchewan residents.
All income tax credits and tax brackets will return to being indexed in 2021, matching the national rate of inflation at 1 per cent. The province expects this to save taxpayers an estimated $15 million.
“We are pleased to resume the indexation of income tax brackets and tax credit amounts in 2021,” said Deputy Premier and Finance Minister Donna Harpauer, in a press release. “Indexation protects Saskatchewan taxpayers from bracket creep, and helps keep the tax system fair, competitive and affordable.”
The Active Families Benefit will also be returning, retroactive to Jan. 1, 2021. The benefit is available to families with children enrolled in sports or cultural activities. It will provide a non-refundable tax credit of $150 per year, per child. Families with children with disabilities may receive $200 per year, per child.
Additionally, the new Saskatchewan Home Renovation Tax Credit will launch in 2021, offering homeowners up to $1,155 in income tax by claiming a 10.5 per cent tax credit on up to $11,000 of eligible home renovations done between Oct. 1, 2020 and Dec. 31, 2021.
The Home Renovation Tax Credit is a campaign promise from the Saskatchewan Party, announced earlier this fall during the election.
For more information on available tax credits and how to apply for them, visit saskatchewan.ca/residents/taxes-and-investments.
