2020 Saskatchewan Marginal Tax Rates

How much you pay in income taxes in Saskatchewan will depend on how much you make and how you make your money.  The most taxed earnings will be derived from labour, followed by capital gains or dividends depending on your marginal tax bracket.
    Depending on how you earn your money you can pay as much as 48% in combined income tax in Saskatchewan and would need to earn $1.92 just to net you a dollar after the income taxes have been paid.


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For the after tax earning all we do is take a dollar and subtract the taxes paid at the marginal tax rates.  For example, for the first $45,225 earned you will keep 74.5 cents for every dollar earned.  $1 - ($1 x 25.5%) = $0.745.
    For the amount needed to save a dollar we took a dollar and divided it by the after tax earnings rate.  For example, someone with a $45,225 salary would get to keep 74.5 cents for every dollar earned and would need to earn $1.34 to take home a dollar.  $1/0.745 = $1.34, this is also the amount you effectively earn by saving a dollar at this marginal tax rate.
    Below we have two charts with the marginal tax rates, the amount of after tax earnings for every dollar earned, the amount you need to earn to take home a dollar and the tax rate on the capital gains tax that you have.  The first chart is the Saskatchewan income tax by itself and the second chart combines the federal and provincial income taxes in Saskatchewan.



2020 Provincial Marginal Tax Rates in Saskatchewan

Taxable Income

Tax Rate

$1 After Tax Earnings

Amount Needed to Net a $1

Capital Gains Tax Rate

first $45,225

10.5%

$0.895

$1.117

5.25%

over $45,225 up to $129,214

12.5%

$0.875

$1.143

6.25%

over $129,214

14.5%

$0.855

$1.17

7.25%


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Basic Personal Amount: Your first $16,065 in earnings are exempt from provincial income taxes in Saskatchewan for 2020.
Capital Gains: Taxable income derived from capital gains will be reduced by half, making an effective marginal tax rate on capital gains that is 50% of your current marginal tax rate.  For example, if you have $10,000 in capital gains, you would have $5,000 in taxable income from your capital gains.



2020 Combined Federal and Provincial Marginal Tax Rates in Saskatchewan

Taxable Income

Tax Rate

$1 After Tax Earnings

Amount Needed to Net a $1

Capital Gains Tax Rate

first $45,225

25.5%

$0.745

$1.342

12.25%

over $45,225 up to $48,535

27.5%

$0.725

$1.379

13.75%

over $48,535 up to $97,069

33%

$0.67

$1.493

17.5%

over $97,069 up to $129,214

38.5%

$0.615

$1.626

19.25%

over $129,214 up to $150,473

40.5%

$0.595

$1.681

20.25%

over $150,473 up to $214,368

43.5%

$0.565

$1.77

21.75%

over $214,368

47.5%

$0.525

$1.905

23.75%


Federal Personal Amount: : For most Canadians, the first $13,229 in earnings are exempt from Federal taxes in 2020, but if you earn $150,473 or more, the basic amount is reduced.  It is reduced when you earn between $150,473 and $214,368.  If you earn more than $214,368 in taxable income, your basic personal amount would be $12,298. The maximum reduction of your basic personal amount will cost you an extra $139.65. The basic personal amount changes the second highest federal tax bracket from 29% to 29.22%.


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Provincial Tax Rates: Provincial Tax Rates 2020
Federal Tax Rates: https://www.canada.ca/en/revenue-agency/services/forms-publications/payroll/t4032-payroll-deductions-tables/t4032ab/t4032ab-january-general-information.html#_Toc337712797
Federal Dividend Tax Credit: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns409-485/425-eng.html