You can also use a Saskatchewan income tax calculator to calculate your total taxable income, net income, and tax liability. So, if you live in Saskatoon, the following guide for calculating Saskatchewan income tax can help you determine Saskatoon taxes.

Determine taxable income by deducting any pre-tax contributions to benefits Your taxable income is the total income on which you pay taxes. To find out your taxable income, you need to calculate your yearly income using your gross monthly wages. Your gross monthly wages include overtime salary, tips, allowances, commissions, and bonuses along with your basic salary. Once you have calculated your total income, deduct pre-tax contributions from your total income. For example, contributions to the Registered Retirement Savings Plan RRSP are tax-deductible.

Withhold all applicable taxes (federal and provincial) The taxes are withheld from gross salary of employees and paid to the CRA by the employers on the behalf of employees. Find out how much taxes are withheld from your paycheck to correctly report your income when you file tax returns. Your take-home salary is your net salary that the paycheck is written for.

Deduct any post-tax contributions to benefits Post-tax contributions refer to contributions to a savings or retirement account after tax is deducted from your income. For instance, contributions to Tax-free Savings Account TFSA are not deductible for income tax purposes, therefore, the contributions are made from your net income. In a TFSA, your investment grows tax-free so you won’t have to pay taxes on withdrawals.

Garnish wages, if necessary When money is withheld from your paycheck and paid to the government or a creditor, the process is called garnishing of wages or just garnishment. Garnished wages are a part of your income that are withheld by your employer that are remitted to the government or creditor. Garnished wages are not tax-deductible and are included in your tax return.

The result is net income After deducting pre-tax deductions, you arrive at your taxable income on which taxes are charged. After paying taxes, the result is your net income which is your take-home salary.