Summary

The Saskatchewan Affordability Act amends The Income Tax Act, 2000 and related Acts to increase several provincial tax credits and benefits. The bill raises the basic personal amount and other personal credits by $500 per year from 2025 through 2028, introduces a new home renovation tax credit, and increases the Graduate Retention Program lifetime maximum from $20,000 to $24,000.

This bill makes Saskatchewan residents' provincial income taxes lower through a series of increases to tax credits. Starting in 2025, the basic personal amount (the income everyone can earn before paying provincial tax) rises by $500 each year for four years, with similar increases to credits for spouses, dependents, and children. The bill introduces a new home renovation credit: homeowners can claim 10.5% of eligible renovation costs between $1,000 and $5,000 (or $6,000 for seniors 65 and older) on their primary residence starting October 1, 2024. The Saskatchewan Low-Income Tax Credit increases by 5% per year for four years on top of regular inflation adjustments. The Active Families Benefit doubles to $300 per child ($400 for children eligible for the disability tax credit), and the income threshold to qualify rises from $60,000 to $120,000. The Graduate Retention Program lifetime maximum increases from $20,000 to $24,000. The small business tax rate stays at 1% instead of rising to 2% as previously scheduled. All these amounts continue to adjust for inflation after the initial increases.