Saskatchewan taxpayers can expect some financial relief in 2025 while federal taxes are set to increase, according to a new report from the Canadian Taxpayers Federation (CTF).
The CTF’s annual New Year’s Tax Changes report showed that in 2025, Saskatchewan and the Trudeau government are moving in different directions regarding taxes.
Saskatchewan will receive several tax cuts, while the Trudeau government plans to increase certain taxes.
The report explains how these changes could affect both families and businesses throughout the province.
“It’s great to see Premier Scott Moe making life more affordable for Saskatchewanians in the new year,” said Gage Haubrich, Prairie Director of CTF.
“In 2025, Saskatchewan families and small businesses will be saving on their income tax bills, and households will be shielded from the federal carbon tax on home heating.”
The provincial government plans to increase personal income, spousal, child and senior exemptions by $500 annually for the next four years.
According to the report, a family of four will save about $2,100 over that period.
In addition, Saskatchewan will maintain its small business tax rate at one percent rather than allowing it to rise to two percent in July 2025.
The CTF estimates that holding small business tax rates will save small businesses more than $50 million each year.
Saskatchewan’s exemption on the carbon tax for home heating is also being extended.
The CTF’s analysis suggests this policy will translate into average annual household savings of roughly $480 in 2025.
Meanwhile, Ottawa’s tax plans point to higher costs.
Payroll taxes, including mandatory Canada Pension Plan and Employment Insurance contributions, are set to rise next year, costing workers up to an additional $403 annually.
The federal carbon tax will also climb, increasing gasoline, diesel, and natural gas prices as of April 1.
The Parliamentary Budget Officer estimates that the average Saskatchewan household will pay $133 even after rebates in 2025-26.
Alcohol excise duties will jump by two percent, and recent federal decisions mean higher capital gains taxes as well as taxes on digital services and online streaming.
“The federal government is hiking taxes and taking more money out of Saskatchewan taxpayers’ pockets in the new year,” said Haubrich.
“Instead of hiking taxes, Prime Minister Justin Trudeau needs to take a play out of the Saskatchewan government’s playbook and commit to serious tax relief.”