2011 Saskatchewan Budget

Tax Highlights

Download the budget highlights as a PDF file.

On March 23, 2011, Saskatchewan's Minister of Finance, Ken Krawetz, presented the province's 2011 budget. The budget:

• reduces the province's small business tax rate from 4.5% to 2% on July 1, 2011;
• decreases the non-eligible dividend tax credit rate after 2010;
• increases the basic and spousal personal exemption amounts by $1,000, and the exemption amount for dependent children by $500 for each dependent child; and
• reduces education property taxes.

These tax reductions have been proposed by the Minister of Finance in the context of a Saskatchewan budget that reflects a surplus for the upcoming year.

Corporate Income Tax Rates | Personal Tax Measures | Education Property Taxes

Corporate Income Tax Rates

The budget reduces Saskatchewan’s small business tax rate from 4.5% to 2% on July 1, 2011. The province’s small business threshold remains $500,000. Its 12% general tax rate and 10% manufacturing and processing tax rate are also unchanged. The following combined federal/Saskatchewan rates will apply to December 31 year ends:

Personal Tax Measures

Non-eligible dividend tax rates

As a result of the small business tax rate reduction, the non-eligible dividend tax credit rate will decrease as shown in the table below.

Personal tax credit

The budget increases 2011 personal tax credits as follows:

Top personal tax rates

Top combined federal/Saskatchewan personal tax rates follow. These rates reflect the above changes and previously announced federal changes.

Education Property Taxes

The budget completes the government’s commitment to reduce its Education Property Tax. It reduces mill rates in 2011 as follows:

• agricultural land – from 7.08 to 3.91;
• residential property – from 10.08 to 9.51; and
• second-tier commercial – from 15.75 to 14.75.