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Saskatchewan Small Businesses Will Pay Less Tax on More Income in 2018

Released on November 6, 2017

Following legislative amendments which were introduced today, small businesses in Saskatchewan will soon have the highest income threshold in Canada.

Effective January 1, 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—is going up from $500,000 to $600,000.

“Small businesses are so vital to the health of the economy that our government decided to further enhance the Saskatchewan Advantage,” Finance Minister Donna Harpauer said.  “Increasing the income threshold to $600,000 provides Saskatchewan small businesses with an incentive to hire more workers and invest new capital right here in our province.  Meanwhile, rates for personal income tax in Saskatchewan continue to be reduced, which also helps create jobs.”

Today’s amendments will implement business income tax initiatives that were announced in the October Throne Speech.  This includes returning Saskatchewan’s general corporate income tax rate to 12 per cent (a half-point increase), effective January 1, 2018—matching the rates of the other western provinces.

“Once implemented, Saskatchewan’s 12 per cent corporate income tax rate will continue to be competitive and among the lowest in the country, maintaining our province’s advantages when attracting new investment and jobs,” Harpauer said.


For more information, contact:

Brian Miller
Phone: 306-787-6605

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