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Saskatchewan Dividend Tax Credit
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Saskatchewan   ->   Dividend Tax Credits

Saskatchewan Dividend Tax Credits

SK Income Tax Act, 2000 s. 32
Bill 87, an Act to amend The Income Tax Act, 2000

Saskatchewan Enhanced Dividend Tax Credit for Eligible Dividends

Saskatchewan enhanced dividend tax credit rates for eligible dividends are defined as a percentage of the Federal gross-up amount.

Saskatchewan Enhanced Dividend Tax Credit
Year 2009 2010 2011 2012-
2017 2018+
Gross-up % 45% 44% 41% 38% 38% 38%
enhanced dividend tax credit as a % of
gross-up 35.44% 36.00% 37.83% 39.95% 39.039% 39.95%
taxable (grossed-up) dividends 11% 11% 11% 11% 10.75% 11%
actual dividends 15.95% 15.84% 15.51% 15.18% 14.83% 15.18%

Saskatchewan's 2017 Budget announced that the dividend tax rate as a percentage of the taxable dividend would be reduced in 1/4 point increments each year from 2017 to 2020.  However, this was revised with their November 6, 2017 Bill 84, which received Royal Assent on November 7, 2017, which revised the 2018 rate from 38.132% of the gross-up (10.5% of the taxable dividend) to 39.95%, or 11% of the taxable dividend, for 2018 and subsequent taxation years.

Saskatchewan Dividend Tax Credit for Non-eligible Dividends

SK Income Tax Act 2000 s. 32

The Federal 2017 Fall Economic Statement announced that the gross-up rate for non-eligible dividends (also know as regular dividends, or small business dividends) would be reduced to 16% for 2018, and to 15% for 2019 and later years.  The Saskatchewan 2018 budget revised the non-eligible dividend tax credits for 2018, 2019 and subsequent years as per the table below.

Bill 22, which received Royal Assent on June 30, 2016, revised the non-eligible dividend tax credit rate to 23.173% of the federal gross-up, resulting in a tax credit of 3.367% of the taxable dividend.  SK Finance has confirmed that this will not be rounded to 3.4% on tax forms.

The current and past Saskatchewan rates for non-eligible dividends are shown in the following table.  The 2018 and later rates will be in effect unless legislative changes are made by Saskatchewan.

     SK Dividend Tax Credit Rate for Non-Eligible Dividends

Year Gross-up
%of Federal
% of Grossed-up
% of Actual
2019+ 15% 25.773% 3.362% 3.866%
2018 16% 24.162% 3.333% 3.866%
2016/2017 17% 23.173% 3.367% 3.939%
2014/2015 18% 22.29% 3.4% 4.01%
2012/2013 25% 20% 4.0% 5.00%
2011 25% 25% 5.0% 6.25%

The Saskatchewan table of marginal tax rates shows the marginal tax rates for eligible and non-eligible dividends and other income.

Revised: October 25, 2020


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