As is the norm everywhere else, tax and taxation are integral parts of living in Saskatchewan. It is basically the primary obligation of residents of any given society to the governing entity, which manages the proceeds to provide essential services for everyone. In Saskatchewan, the same process applies.
Taxes are collected from Saskatchewan residents by the federal, provincial, and municipal (local) governments. This money is used to fund police and fire protection, health care, education, and other services. These taxes are frequently taken from an employee’s paycheck. How much of a resident’s income goes into tax obligation depends on the type of tax and who is the recipient, the federal, provincial or municipal government. While you’re advised to read more on them, here is some information on tax obligations in Saskatchewan.
You must complete Income Tax forms for the Canada Revenue Agency every year by April 30. You’ll list how much money you made and how much tax you’ve already paid on the form. You will either have to pay more tax or receive money back as an income tax refund, depending on your income and the amount of tax you paid. Regardless of how much or how little money you made in a given year, you are obligated to file your taxes.
Goods and Services Tax (GST)
The Goods and Services Tax is a federal sales tax that is levied on the majority of goods and services you purchase.
Provincial Sales Tax (PST)
The Provincial Sales Tax (PST) is a sales tax levied on the majority of things purchased, imported, or rented, as well as certain services.
Note- Most of the time, these taxes (GST & PST) are not included in the item’s quoted price; they are applied when you pay for your purchase.
Your local city, town, or municipal government will charge you property taxes if you own a house or other property. These taxes help to fund local schools, roads, and other city services.
You do not directly pay property tax if you rent an apartment.
It is interesting to know that in Saskatchewan, it is not a one-way relationship between the government and residents. While you’re obligated to pay taxes, the government also recognizes that there may be a need to support residents who might need some assistance.
- Tax Credits and Financial Assistance Programs
Saskatchewan residents receive money from the government in the form of credits, supplements, and benefits.
A tax credit is money given to you as a result of a government tax program.
An income supplement is money received through some federal or provincial government programs to aid people with specific needs, such as paying rent or purchasing eyeglasses for their children.
- The Canada Child Benefit (CCB)
The Canada Child Benefit (CCB) is a tax-free monthly payment given to qualifying families to assist them in covering the costs of rearing children under the age of 18. If you have children, you should apply for the Child Care Benefit (CCB) as soon as you arrive in Saskatchewan. Before you may apply, however, you must have a Social Insurance Number (SIN).
- The Child Care Subsidy (CCS)
The Child Care Subsidy is a monthly stipend offered to families to assist them with the costs of licensed child care.
- Goods and Services Tax (GST) Credit
The GST Credit allows low-income individuals and families to reclaim some or all of the federal goods and services tax they paid in a given year.
By completing the Return RC151 form or the benefits part of your income tax form, newcomers to Canada can claim GST/HST credits at any point during the year they become residents of Canada.
Every three months, GST credit cheques are provided.
Support For Low-income Earners
Other ways through which Saskatchewan residents, especially low-income earners can benefit from the province include;
- The Provincial Training Allowance (PTA), which provides financial aid to low-income adult students enrolled in specific programs;
- The Saskatchewan Low-Income Tax Credit, decreases the provincial income taxes for low-income residents. You will be automatically registered for this program if you filed for the federal GST Credit; and
- The Saskatchewan Income Support (SIS), is a program that assists persons who are unable to afford their basic living expenses.