The Saskatchewan government released its 2026–27 provincial budget on March 18, 2026. As expected, the budget focuses on stability, with no new taxes and no major service cuts, reflecting ongoing economic uncertainty.
Below is a breakdown of the key tax changes, business incentives, and economic outlook, and what they mean for individuals and businesses in Saskatchewan
Personal Tax Changes:
Several Saskatchewan personal income tax credits will increase by $500 in 2026, in addition to normal annual indexation. These changes were first introduced in the prior budget and this is the second year of this tax reduction for Saskatchewan residents.
The credits impacted include:
- Basic personal amount
- Spousal or equivalent-to-spouse amount
- Dependent child amount
- Senior supplementary amount
Each $500 increase results in approximately $52.50 in tax savings per credit claimed.
In addition, the Volunteer First Responder Tax Credit is being enhanced. The credit amount will double from $3,000 to $6,000, providing increased tax relief for eligible volunteer firefighters, search and rescue volunteers, and other qualifying first responders.
Saskatchewan R&D Tax Credit Changes:
The Saskatchewan Research and Development (R&D) Tax Credit has been expanded to better support businesses investing in innovation.
Key updates include:
- The annual limit for refundable R&D expenditures has increased from $1 million to $2 million for qualifying corporations
- Eligible expenses have been expanded to include certain capital expenditures and lease/rental costs, aligning with recent federal changes
These enhancements make the program more accessible and valuable for businesses looking to invest in growth, technology, and operational improvements.
Saskatchewan Budget Deficit and Fiscal Outlook:
The province is projecting a budget deficit of $819 million for 2026–27.
For context:
- The 2025–26 budget originally projected a $12 million surplus
- Updated forecasts now estimate a $1.21 billion deficit for that year
This indicates some improvement in the province’s financial position compared to recent projections, despite ongoing economic pressures.
The government’s cautious approach reflects continued global economic uncertainty, including:
- Ongoing U.S. tariff risks
- Geopolitical instability, including conflict in the Middle East
As a result, the 2026 budget prioritizes stability and predictability, rather than significant tax changes or spending adjustments.
Saskatchewan Revenue Forecast :
Total provincial revenue is forecasted at $21.4 billion, including approximately $2.57 billion from non-renewable resources, primarily oil, potash and natural gas.
The budget is based on an average oil price of $59.75 USD per barrel (WTI). With oil prices currently trending higher, there is potential for stronger-than-expected revenue if prices remain elevated.
Conclusion:
While this year’s Saskatchewan budget introduces minimal tax changes, it sets the stage for potential adjustments in future years as economic conditions evolve. You can view the Saskatchewan Finance press release and full budget details.
Please contact your Virtus Advisor to discuss any specific questions about the Budget or fill out the form below.
