Tax Flash Bulletin
2022 Federal Budget Highlights
On April 7, 2022, Deputy Prime Minister and Minister of Finance, Chrystia Freeland, presented the federal budget for the 2022-
2023 fiscal year. The budget projects a deficit of $52.8 billion for 2022-2023 and a deficit of $39.9 billion for 2023-2024. The
minister expects to end the 2021-2022 fiscal year with a deficit of $113.8 billion compared to the $154.7 billion projected at this
time last year. New tax measures in the form of draft legislation accompanied the budget documents. We have summarized
selected highlights of the personal and small business tax measures.
INDIVIDUALS
Personal Tax Rates
There were no proposed changes to individual income tax rates for 2022 or 2023. The budget did not include any changes to
capital gains inclusion rates.
Saskatchewan Income Tax Brackets and Rates
| 2021 Taxable Income | 2022 Taxable Income | Tax Rate |
|---|---|---|
| $0 to $49,020 | $0 to $50,197 | 15% |
| $49,020 to $98,040 | $50,197 to $100,392 | 20.5% |
| $98,040 to $151,978 | $100,392 to $155,625 | 26% |
| $151,978 to $216,511 | $155,625 to $ 221,708 | 29% |
| Over $216,511 |
Over $221,708 |
33% |
Based on known rates at April 7, 2022
| Basic Personal Amount | 2021 | 2022 |
|---|---|---|
| Net income greater than amount at which the 33% bracket begins | $12,421 | $12,719 |
| Net income less than amount at which the 29% bracket begins | $13,808 | $14,398 |
Introduction of the Tax-Free First Home Savings Account
As promised during the election, the budget introduces the Tax-Free First Home Savings Account (FHSA) to help individuals save for their first home purchase. Contributions to an FHSA would be deductible like an RRSP, but the withdrawals are not taxable when used to purchase a first home. The income and growth of the FHSA are not taxable when used for a qualifying home purchase.
The contribution limit is $8,000 per year, up to a lifetime limit of $40,000. The full limit will first be available starting in 2023. If a taxpayer contributes less than the maximum $8,000 for the year, they cannot carry forward unused room, unlike an RRSP or TFSA. An individual may hold more than one FHSA, but the total contributions cannot exceed their annual and lifetime FHSA contribution limits.
