Municipal Revenue Sharing will reach a record high of $361.8 million in the 2025-26 provincial budget, an increase of $21.5 million, or 6.3 per cent, from last year.
Cities, towns and villages across Saskatchewan receive funding based on three-quarters of one point of provincial sales tax revenue from two years prior. The predictable nature of the funding allows municipalities to plan their budgets with a clear understanding of their annual allocation.
"Our government continues to deliver reliable, predictable municipal revenue sharing to our communities and is the envy of other municipal governments throughout Canada," Government Relations Minister Eric Schmalz said. "More than $4.6 billion in MRS funding has been delivered through this program since 2007-08, based on the strength and growth of Saskatchewan's economy."
The 2025-26 budget also includes reductions to Education Property Tax mill rates across all property classes. Municipalities collect education property taxes and usually send the money to the provincial government. However, separate school divisions can set their own tax rates if they choose. If a separate school division sets its own rate, the municipality sends the tax money directly to that school division instead of the province.
Agricultural properties will see a decrease from 1.42 to 1.07, while residential rates will drop from 4.54 to 4.27. Commercial and industrial properties will be reduced from 6.86 to 6.37, and resource properties will see the largest drop, from 9.88 to 7.49.
"In this revaluation year, all property tax classes will see reductions in Education Property Tax mill rates, resulting in property tax savings of more than $100 million annually," Schmalz said. "In this era of uncertainty, the Government of Saskatchewan is committed to examining the tax tools available to us to provide relief to Saskatchewan property owners facing rising costs."