Released on January 3, 2002
Personal income taxes were reduced for the fifth straight year inSaskatchewan on January 1st, 2002. That's a saving of $1,297 a year since
1993, almost a full third.
"Not only did personal income tax decrease for the fifth year in a row, but
the senior and child tax credits were increased as well," Finance Minister
Eric Cline said. "The tax credit for dependent children is the only one of
its kind in Canada. It provides a special incentive no other province
offers to keep families with young children here."
2002 tax changes:
Personal income tax rates decrease;
Child tax credit increases from $1,500 per child to $2,000;
Seniors tax credit rises from $500 a year to $750;
The amount of annual income to which the small business rate
applies increased from $200,000 to $300,000; and
An average Saskatchewan family was paying $4,000 in income tax in
1993. In 2002, they will pay $2,703.
"Tax reform makes this province more attractive, more affordable and more
viable, and I believe will help us get through our current economic
challenge," Cline said.
The latest reduction in rates is the next step in implementation of the tax
reform plan announced in the 2000 Budget. Effective January 1st, the rate
paid on the first $30,000 of taxable income goes from 11.5 per cent to
11.25 per cent; the rate on the next $30,000 decreases from 13.5 per cent
to 13.25 per cent; and the rate on remaining taxable income over $60,000
declines from 16 per cent to 15.5 per cent.
-30-
For more information, contact:
Roy Schneider
Finance
Regina
Phone: (306) 787-8109