On March 19, Finance Minister Jim Reiter tabled the 2025-26 Saskatchewan provincial budget. The new budget contained several spending initiatives but few major tax changes.
We’ve detailed some of the new tax incentives and their impact on individuals and business owners in the province.
Business Impact:
- Small Business Tax Rate Maintained at 1%
The small business corporate income tax rate remains at 1%, continuing Saskatchewan’s position as one of the lowest corporate tax environments for small businesses. The rate was slated to increase to 2% on July 1, 2025. - Small and Medium Enterprise (SME) Investment Tax Credit
A new 45% non-refundable tax credit is available for individuals and corporations investing in eligible Saskatchewan SMEs, designed to encourage local business investment.
Personal Tax Measures:
- Personal Income Tax Exemptions Increased
The Basic Personal Exemption, Spousal and Equivalent-to-Spousal Exemptions, Dependent Child Exemption, and Seniors Supplement will each increase by $500 annually for four years. This increase is in addition to the annual indexation increases. - Increasing Active Families Benefit
The benefit will increase to $300 (from $150) per child for sports, arts, culture and recreation. Available to families with household income up to $120,000 (from $60,000) - Graduate Retention Program Benefit Increased
The maximum tax benefit for post-secondary graduates rises by 20% to $24,000. - Home Renovation Tax Credit Reinstated
Homeowners will be eligible for a home renovation tax credit on eligible home renovation expenses up to $4,000 per year to a maximum benefit of $420 annually. Seniors will be eligible for an additional $1,000 of expenses per year for a maximum benefit of $525 annually. - Increasing Disability Tax Credit and Caregiver Tax Credit
The Disability and Caregiver Tax Credits will increase by 25%.
General Tax Measures
- Education property tax mill rates will be reduced across all property classes, with an estimated $100 million in savings annually
- Extending carbon tax exemption on home heating, which is expected to save the average Saskatchewan family approximately $480 in 2025.
Budget Surplus Projected
The Saskatchewan Government is also forecasting a budget surplus of $12.2M compared to budget deficit of $273.2M in 2024. However, it is important to note that the estimates contain no contingencies for potential effects of US or other tariffs.
Conclusion:
You can view the Saskatchewan Finance press release and full budget details here. Please contact your Virtus Advisor to discuss any specific questions about the Budget or fill out the form below.
Further Reading:
2025-26 Saskatchewan Budget Release
