On March 19, 2025, Saskatchewan Minster of Finance, Jim Reiter, released the province’s budget for the 2025-2026 fiscal year. We have highlighted selected budget measures that affect Saskatchewan individuals and small businesses.

INDIVIDUALS

Personal Tax Rates

The budget did not propose any changes to personal income tax rates. Saskatchewan indexed the 2025 brackets at an inflation rate of 2.7%.

Top rates apply to taxable income over $253,414 based on known federal and provincial rates as of March 19, 2025.

Personal Income Tax Measures *

• Budget 2025 raises the basic personal exemption, spousal and equivalent-to-spouse exemption, dependent child exemption and the seniors supplement by $500 a year, in each of the next four years taxation years (2025 to 2028).
• To further help with disability-related costs, Budget 2025 will increase the Disability Tax Credit, Disability Tax Credit Supplement for persons under 18, Caregiver Tax Credit and the Infirm Dependent Tax Credit amounts by 25% in the 2025 taxation year.
• Budget 2025 provides an increase of the Saskatchewan Low-Income Tax Credit by 5% annually for each of the next four years. The program is a fully refundable, non-taxable benefit for those who file a tax return and meet certain income and family criteria.
• To help ensure post-secondary graduates remain to work in the province, the budget will increase the Graduate Retention Program’s maximum tax credit benefits by 20% to $24,000, for those who graduate on or after October 1, 2024.
• To help make children’s activities more affordable for families, the Active Families Benefit provides a refundable tax credit for children partaking in sports and cultural activities. Budget 2025 doubles the tax credit to $300 per child, and doubles the family income eligibility threshold to $120,000 per family.
• Budget 2025 introduces a new Fertility Treatment Tax Credit, retroactive to January 1, 2025. The program provides a 50% refundable tax credit for one lifetime fertility treatment expense per taxpayer, up to eligible maximum expenses of $20,000. This would result in a maximum tax refund of $10,000 per eligible claimant.

* The tax credit increases listed are over and above the increases due to the impact of indexation.

Housing Measures

• To support First-Time Home Buyers, the Budget will increase the First-Time Homebuyers’ Tax Credit, a non-refundable income tax credit, from $1,050 to $1,575, effective October 1, 2024.
• Budget 2025 reinstates the Home Renovation Tax Credit on a permanent basis, effective October 1, 2024. The program provides a non-refundable tax credit on eligible renovation expenses of up to $4,000 per year on primary residences.
• Budget 2025 provides the PST Rebate for New Home Construction as a permanent program, for newly constructed homes with a total price of less than $550,000, with the rebate gradually being phased out for home with a total price between $450,000 and $550,000.

BUSINESSES

The budget did not change any corporate income tax rates or the $600,000 small business income threshold.

To assist small businesses, Budget 2025 announced that the province will permanently maintain the 1% small business rate rather than restoring to 2% in mid-2025, as previously scheduled.

Based on known federal and provincial rates as of March 19, 2025
*Canadian Controlled Private Corporation

Other Business Income Tax Measures

• Effective July 1, 2025, Budget 2025 introduces a new Small and Medium Enterprise Investment Tax Credit, a 45% non-refundable tax credit for individuals or corporations that invest in the equity of an eligible Saskatchewan small and medium enterprise.
• Budget 2025 provides a two-year extension for the Saskatchewan Commercial Innovation Incentive, with a new application acceptance deadline of June 30, 2025.

Other Tax Measures

• Effective June 1, 2025, the PST base will be expanded to include the sale of all vapour liquids, products and devices. Currently, PST applied to traditional tobacco products but not to vapour products.
• Budget 2025 will increase the annual Road Use Charge for each passenger EV registered in Saskatchewan from $150 to $300, effective June 1, 2025.

Refer to the 2025 Saskatchewan Budget for further details for further details.

This has been prepared by the Total Wealth Solutions Group of Raymond James Ltd., (RJL). Statistics and factual data and other information are from sources RJL believes to be reliable but their accuracy cannot be guaranteed. It is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities nor is it meant to replace legal, accounting, taxation or other professional advice. We are not tax advisors and we recommend that clients seek independent advice from a professional advisor on tax-related matters. The information is furnished on the basis and understanding that RJL is to be under no liability whatsoever in respect thereof. This is intended for distribution only in those jurisdictions where RJL and the author are registered. Securities-related products and services are offered through Raymond James Ltd., Member - Canadian Investor Protection Fund. Insurance products and services are offered through Raymond James Financial Planning Ltd., which is not a Member - Canadian Investor Protection Fund.