Saskatchewan’s latest provincial budget includes sweeping tax relief and affordability measures, aimed at making the province the most cost-effective place in Canada to live and work, according to the government.
The 2025-26 budget, tabled in March, includes more than $250 million in new tax savings this year and ongoing affordability initiatives that total over $2 billion annually.
“This budget follows through on our promise to ensure Saskatchewan remains the most affordable place in Canada to live, work, raise a family and start a business,” Finance Minister Jim Reiter said in a statement.
Among the most significant changes are increases to the basic personal, spousal, and dependent child tax exemptions, which will each rise by $500 annually over the next four years. The province says this is the largest personal income tax reduction since 2008 and will result in 54,000 additional residents no longer paying provincial income tax once fully implemented.
The province also plans to increase the seniors' supplement by $500 annually for four years, expand the Personal Care Home Benefit, and enhance programs such as the Fertility Treatment Tax Credit, the Active Families Benefit, and the Disability Tax Credit.
Families and seniors stand to benefit the most from the new measures, which also include:
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A higher Caregiver Tax Credit and Disability Tax Credit for children under 18, both rising by 25 per cent.
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A $100-million reduction in education property taxes through lower mill rates to offset rising property values.
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A permanent PST rebate on new home construction.
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A higher First-Time Homebuyers’ Tax Credit, with a new maximum of $1,575.
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The reinstatement of the Home Renovation Tax Credit saves eligible residents up to $420 and $525 for seniors.
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An increase to the Graduate Retention Program, now worth up to $24,000, and the Saskatchewan Advantage Scholarship, worth up to $3,000.
Support for income assistance recipients is also rising. Both Saskatchewan Income Support and Saskatchewan Assured Income for Disability clients will see a two per cent increase, while the Low-Income Tax Credit will rise by five per cent annually over four years, beginning July 1, 2025.
The province says more than 300,000 residents will benefit from that change.
The budget also supports businesses with a permanently reduced small business tax rate of one per cent, benefiting over 35,000 companies and saving them $50 million annually. A new Small and Medium Enterprise Investment Tax Credit is also being introduced.
Meanwhile, a rebate program for commercial truck driver training is intended to help address labour shortages in the transportation sector.
More information about the province’s affordability measures is available at: budget.saskatchewan.ca