2016 officially starts tomorrow, and with new beginnings also means new savings, according to the Government of Saskatchewan. A news release from the Saskatchewan Government stated, all Saskatchewan income tax brackets and tax credit amounts will incline in 2016 to match the national rate of inflation.

Finance Minister for the province Kevin Doherty said that indexation is a part of the governments ongoing commitment to fairness and competitiveness towards taxation.

"This annual measure helps protect Saskatchewan people from 'bracket creep' and keeps more money in their pockets throughout the year." Doherty said.

The release states that Saskatchewan residents will save approximately $8.1 million because of indexation, and is only one of many measures being taken to keep Saskatchewan taxes low. Individual taxpayers in the province will now pay now pay no Saskatchewan income taxes for their first $19,220 of income, and Saskatchewan families of four will not pay income tax on their first $49,800 of income. This is the highest tax-free income for families of four in the whole country.

Families of four that have $50,000 of annual income as well as $3000 in child care expenses, will now see their provincial tax cut by 100 per cent since 2008. That is $2,300 down to zero provincial income tax in 2016.

Some other measures the Government of Saskatchewan have taken to reduce personal income tax (since 2008) include:

  • An increase in personal, spousal and child exemption amounts and a new low income tax credit have been put in place by the province.
  • Another raise of new low income tax for personal, spousal and child exemption amounts in 2011.
  • The province has since introduced a new First-Time Home buyers Tax Credit in 2012