Released on January 7, 2004
Saskatchewan residents will benefit from income tax reductions for the seventh straight year in 2004.Effective January 1st, 2004, Saskatchewan's income tax brackets and family credits will increase each year, based on the national rate of inflation. This final stage of indexation applies specifically to basic and spousal credits, senior supplement, dependent child credit, and the Saskatchewan Sales Tax Credit (SSTC).
All other components of the Saskatchewan income tax system are already indexed to match the amounts for federal income tax purposes, including the age credit, disability-related credits and the medical expense credit.
"We are continuing to provide meaningful tax relief to Saskatchewan people by ensuring tax brackets and family credits keep pace with inflation," Finance Minister Harry Van Mulligen said. "These measures will protect people from "bracket creep," where income taxes automatically increase as a result of inflation-based adjustments to personal income."
This indexation rate is measured by the Consumer Price Index. For 2004, the indexation factor is 3.3 per cent. Changes to the tax credits compared to 2003 include: the Basic and Spousal/Equivalents amounts increase from $8,000 to $8,264; the Age amount increases from $3,787 to $3,912; the Disability amount increases from $6,279 to $6,486; and the medical expense threshold increases from $1,755 to $1,813.
These tax reforms mean that a two-income family of four earning $50,000 will pay about $70 less in taxes this year compared to last year. This amount will change from year to year, as the tax credits are adjusted, based on the rate of inflation.
"Our government remains committed to ensuring taxes in Saskatchewan are as fair and competitive as possible," Van Mulligen said. "Sensible tax reform helps to make living in the province more affordable and more attractive, while continuing to support the essential services our people value."
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For More Information, Contact:
| Debbie Clark Finance Regina Phone: (306) 787-6605 Email: dclark@finance.gov.sk.ca |