The Government of Saskatchewan has introduced The Saskatchewan Affordability Act in the Legislative Assembly, aiming to solidify the province as Canada’s most affordable place to live, work, raise a family, and start a business.
The legislation, which follows the Saskatchewan Party’s recent provincial election commitments, includes 13 measures designed to address rising cost-of-living concerns while fostering economic growth.
Largest Tax Reduction Since 2008
Deputy Premier and Finance Minister Jim Reiter highlighted the Act’s focus on affordability during its unveiling.
“During the recent election campaign, we heard concerns from Saskatchewan citizens about the cost-of-living pressures they are facing today,” Reiter said. “We are taking action to make life more affordable for all residents and families, while ensuring we maintain a strong economy.”
A key feature of the Act is the largest personal income tax reduction in Saskatchewan since 2008. Over the next four years, personal, spousal, and child exemptions, along with the senior supplement, will increase by $500 annually. This move, combined with annual indexing of tax brackets and credits, will save a family of four earning $100,000 more than $3,400 over four years. Additionally, over 54,000 residents will no longer pay provincial income tax once these measures are fully implemented.
Low-Income Tax Credit Expansion
The Saskatchewan Low-Income Tax Credit will increase by 5% annually for the next four years, benefiting more than 300,000 individuals and families.
Homeownership and Renovation Incentives
Homeownership is also a focus, with the Saskatchewan First-Time Homebuyers Credit increasing by 50%. Homeowners can save up to $420 annually on renovation expenses through the Home Renovation Tax Credit, with seniors eligible for savings of up to $525.
Support for Families, Seniors, and Small Businesses
The Act includes targeted reforms to support seniors, families, and caregivers, including:
- Increasing the Disability Tax Credit and its child supplement by 25%.
- Doubling the Active Families Benefit and raising the income threshold to help more families afford children’s sports, arts, and recreational activities.
- Maintaining the small business tax rate at 1%, benefiting over 35,000 small businesses and saving more than $50 million in annual corporate taxes.
Incentives for Graduates and Workers
To encourage young people to stay in Saskatchewan, the Graduate Retention Program’s tax credit benefits will increase by 20%. The government will also introduce a Class 1 commercial driver’s licence training rebate to support the trucking industry.
Future Initiatives
The affordability measures in the Act build on the $2 billion in initiatives already in place in each provincial budget. Additional plans, set to be announced in the 2025-26 budget, include increased supports for personal care home residents, expanded earned income thresholds for Saskatchewan Assured Income for Disability (SAID) recipients, refundable tax credits for fertility treatments, and incentives for small- and medium-sized business investments.
“The Saskatchewan Affordability Act will reduce income taxes for every resident, family, and small business in our province,” Reiter emphasized. “These measures will ease cost pressures while strengthening the foundation for Saskatchewan’s economic future.”
With these sweeping changes, the government reaffirms its commitment to addressing financial challenges while ensuring Saskatchewan remains a desirable and affordable place to call home.