Tax Flash Bulletin
2023 Saskatchewan Budget Highlights
On March 22, 2023, Saskatchewan Minster of Finance, Donna Harpauer, released the province’s budget for the 2023-2024 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 2023 brackets at an inflation rate of 6.3%.
Saskatchewan Income Tax Brackets and Tax Rates
| 2022 Taxable Income | 2023 Taxable Income | Tax Rate |
|---|---|---|
| $0 to $46,773 | $0 to $49,720 | 10.50% |
| $46,773 to $133,638 | $49,720 to $142,058 | 12.50% |
| Over $133,638 | Over $142,058 | 14.50% |
Top Combined Saskatchewan and Federal Rates
| Income Type | 2022 | 2023 |
|---|---|---|
| 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 $235,675 ($221,708 for 2022) based on known federal and provincial rates as of March 22, 2023.
Enhancement to the Saskatchewan Mineral Exploration Tax Credit
- The budget increases the provincial mineral exploration tax credit from 10 per cent to 30 per cent, effective for the 2023 taxation year.
Social Services and Assistance Measures
- The budget reduces childcare fees for families with children up to the age of six to $10 per day, effective April 1, 2023.
- Saskatchewan Income Support recipients will receive increases of $30 per month, specifically the Adult Basic Benefit, Shelter Benefit, and the Alternative Heating Benefit, Saskatchewan Assured Income for Disability (SAID), and Senior’s Income Plan (SIP) benefits.
- The Personal Care Home Benefit will increase by up to $400 per month and SAID recipients under age 65 who live in personal care homes will receive up to $684 more per month.
BUSINESSES
Corporate Income Tax Rates
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 will increase to 1% on July 1, 2023 and increase to 2% on July 1, 2024 to return the tax rate back to the pre-pandemic rate.
| Income Type | Provincial | Federal | Combined Calendar 2023 |
|---|---|---|---|
| General corporate income | 12.00% | 15.00% | 27.00% |
| Small business income < $500,000 | 0.50% | 9.00% | 9.50% |
| Small business income between $500,000 to $600,000 | 0.50% | 15.00% | 15.50% |
| 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 22, 2023
| SK small business tax rate changes | Tax Rate |
|---|---|
| Extended to June 30, 2023 | 0% |
| Effective July 1, 2023 |
1% |
| Effective July 1, 2024 | 2% |
Extension of Saskatchewan Manufacturing and Processing Exporter Tax Incentive
- The incentive provides non-refundable tax credits to eligible corporations that increase the number of full-time employees above the baseline in 2014.
- The budget extends the incentive until December 31, 2023.
Refer to the 2023 Saskatchewan Budget for further details
This has been prepared by the Professional Wealth Advisory 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.