Saskatchewan’s small business owners look forward to the New Year knowing they will have the highest income threshold in Canada. Also individual taxpayers will see the benefits of a full year of the lower Personal Income Tax rates. The provincial small business income threshold—the amount of income up to which small businesses pay tax at the much lower two per-cent small business tax rate—went up from $500,000 to $600,000 effective January 1.
“A higher income threshold provides small businesses with an incentive to hire more workers and invest new capital right here in Saskatchewan, supporting our government’s growth agenda,” said Donna Harpauer, Minister of Finance. “Meanwhile, Saskatchewan’s 12 per cent corporate income tax rate continues to be competitive and among the lowest in the country, further enhancing our province’s significant advantages when attracting new investment and jobs.”
It is estimated that as many as 6,000 small and medium sized businesses throughout the province report income greater than or near $500,000. As for the lower provincial Personal Income Tax rates, effective July 1, 2017 Saskatchewan residents will see the benefit of a half percentage point drop for the entire calendar year and a further half point drop on July 1, 2019.
“Lower personal taxes help to create jobs and attract people to our province by improving Saskatchewan’s tax competitiveness.”
