2024 Saskatchewan Budget Highlights
On March 20, 2024, Saskatchewan Minster of Finance, Donna Harpauer, released the province’s budget for the 2024-2025 fiscal year. We have highlighted selected budget measures that affect Saskatchewan individuals and small businesses.
INDIVIDUALS
Personal Tax Rates
The budget did not propose any changes to personal income tax rates. Saskatchewan indexed the 2024 brackets at an inflation rate of 4.7%.
Saskatchewan Income Tax Brackets and Tax Rates
| 2023 Taxable Income | 2024 Taxable Income | Tax Rate |
|---|---|---|
| $0 to $49,720 | $0 to $52,057 | 10.50% |
| $49,720 to $142,058 | $52,057 to $149,034 | 12.50% |
| Over $133,638 | Over $149,034 | 14.50% |
Top Combined Saskatchewan and Federal Rates
| Income Type | 2023 | 2024 |
|---|---|---|
| Salary, interest, pension, foreign | 47.50% | 47.50% |
| Eligible dividends | 29.64% | 29.64% |
| Non-eligible dividends | 41.82% | 41.82% |
| Capital gains | 23.75% | 23.75% |
Top rates apply to income over $246,752 ($235,675 for 2023) based on known federal and provincial rates as of March 20, 2024.
Personal Tax Measures
- The Saskatchewan First-Time Homebuyers’ Tax Credit provides a non-refundable income tax credit of up to $1,050 to eligible taxpayers on qualified homes.
- Continuing the funding of the Graduate Retention Program, which provides up to $20,000 in tax credits to post-secondary graduates who remain to work in the province.
Social Services and Assistance Measures
- Saskatchewan Income Support (SIS) Basic Shelter Benefits will increase by three per cent, an increase of up to $60 per household per month.
- The Alternative Heating Benefit will increase by $30 per month, and the Saskatchewan Assured Income for Disability (SAID) will also increase by three percent, representing an increase of up to $55 per household.
- The Personal Care Home Benefit will increase by $100 per month to $2,500.
Housing Measures
- Budget is funding the PST Rebate on New Home Construction Program, to help make new home ownership more affordable.
- Removing the federal carbon tax previously collected by SaskEnergy and Saskpower from home heating starting January 1, 2024.
- Assisting Saskatchewan families with the affordability and availability of housing through two programs announced in November 2023 and retroactive to April 1, 2023 – the Provincial Sales Tax Rebate for New Home Construction and the Secondary Suite Incentive (SSI) Grant Program.
BUSINESSES
The budget did not change any corporate income tax rates or the $600,000 small business income threshold.
The government had previously reduced the small business tax rate to 0% effective October 1, 2020 on a temporary basis. The small business corporate tax rate increased to 1% on July 1, 2023 and to assist small businesses, the province will maintain the 1% rate rather than increasing to 2% on July 1, 2024, as was previously scheduled. The 1% small business rate is extended to June 30, 2025.
| Income Type | Provincial | Federal | Combined Calendar 2024 |
|---|---|---|---|
| General corporate income | 12.00% | 15.00% | 27.00% |
| Small business income < $500,000 | 1.00% | 9.00% | 10.00% |
| Small business income between $500,000 to $600,000 | 1.00% | 15.00% | 16.00% |
| CCPC* investment income | 12.00% | 38.67% | 50.67% |
| Non-CCPC investment income | 12.00% | 15.00% | 27.00% |
| Manufacturing & processing income | 10.00% | 15.00% | 25.00% |
* Canadian-controlled private corporation
Based on known federal and provincial rates as of March 20, 2024
| SK small business tax rate changes | Tax Rate |
|---|---|
| Effective July 1, 2023 until June 30, 2025 |
1% |
Extension of Saskatchewan Technology Start-up Incentive
- The program provides a 45% non-refundable tax credit for up to $225,000 in annual investments, subject to a maximum of $140,000 claimable per tax year, and credits can be claimed over a 7 year period.
- Available to certain accredited investors to help Eligible Technology Start-up Businesses (ESBs) that have a head office in Saskatchewan raise capital.
- Doubles the annual program cap on the amount of non-refundable tax credits that may be issued from $3.5 million to $7 million annually.
- Expanding eligibility to startups in the clean tech sector, in addition to eligible agtech and digital sectors.
- The budget extends the program sunset date from March 31, 2026 to March 31, 2027.
Refer to the 2024 Saskatchewan Budget for further details
This has been prepared by the Total Wealth Solutions Group of Raymond James Ltd., (RJL). Statistics and factual data and other information are from sources RJL believes to be reliable but their accuracy cannot be guaranteed. It is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities nor is it meant to replace legal, accounting, taxation or other professional advice. We are not tax advisors and we recommend that clients seek independent advice from a professional advisor on tax-related matters. The information is furnished on the basis and understanding that RJL is to be under no liability whatsoever in respect thereof. This is intended for distribution only in those jurisdictions where RJL and the author are registered. Securities-related products and services are offered through Raymond James Ltd., Member - Canadian Investor Protection Fund. Insurance products and services are offered through Raymond James Financial Planning Ltd., which is not a Member - Canadian Investor Protection Fund.