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Saskatchewan

Saskatchewan’s budget helps with affordability

Christopher Oldcorn

Saskatchewan’s government budget has a wide range of measures designed to keep life affordable for residents across the province. 

The budget maintains Saskatchewan’s status as one of the most economical places in Canada to live, work, raise a family, and start a business.

Each year, the province provides more than $2 billion in affordability measures. 

This time, the package includes a mix of new tax reductions and enhanced benefits, in addition to longstanding affordability measures that address the day-to-day cost-of-living pressures being felt by Saskatchewanians.

One of the key features is the continued use of indexation for provincial income tax brackets and basic tax credits. 

By indexing these figures to inflation, taxpayers avoid being pushed into higher tax brackets simply because of rising prices. 

For 2025, Saskatchewan residents are expected to see more than $40 million in total tax savings from this policy alone.

The province is also putting into action several commitments introduced last December as part of The Saskatchewan Affordability Act

In total, 13 new or increased measures will provide tax relief for individuals, families, and small businesses, while also delivering targeted support for seniors, caregivers, post-secondary graduates, and those with disabilities. 

Taken together, the tax adjustments and affordability initiatives in the new budget are worth more than $250 million, on top of the province’s regular $2 billion in annual affordability measures.

Among the new personal income tax changes is the largest reduction the province has seen since 2008. 

Over the next four years, the basic personal exemption, as well as the spousal and equivalent-to-spouse exemptions, will rise by $500 per year over and above indexation. 

The same goes for the dependent child exemption and seniors supplement. 

These increases are intended to help households deal with rising inflation.

A typical family of four earning $100,000 could save more than $3,400 over the four-year period, while two seniors living on a combined income of $75,000 could see savings of more than $3,100. 

By the time the changes are fully in place, the province estimates more than 54,000 people will no longer be paying any provincial income tax.

As part of the government’s push to make life more affordable, the Disability Tax Credit and the Disability Tax Credit supplement for children under 18 will go up by 25%. 

Similarly, the Caregiver Tax Credit and the Infirm Dependent Tax Credit are rising by 25%, in addition to the standard indexation amount. 

This move is aimed at easing the financial burden faced by families who look after adult children or parents with physical or mental impairments.

Individuals who rely on income assistance will also see a boost, with Saskatchewan Income Support (SIS) and Saskatchewan Assured Income for Disability (SAID) benefits both going up by two percent. 

Government projections suggest nearly 20,000 SIS clients and over 18,000 SAID clients will see an increase in their monthly cheques.

Low-income residents will receive extra help through a five percent annual increase to the Saskatchewan Low-Income Tax Credit over each of the next four years, again above and beyond the usual impact of indexation, with more than 300,000 people expected to benefit. 

Also, the Personal Care Home Benefit is being increased, giving more than 2,000 seniors with low incomes added relief to cover the costs of living in licensed personal care homes.

In an effort to support individuals hoping to start a family, the budget offers a new refundable tax credit of 50% on eligible fertility treatment costs, up to $20,000. 

This is a direct response to concerns about the high expenses associated with fertility treatments.

The budget also doubles the Active Families Benefit and raises the income threshold for eligibility to $120,000. 

This refundable tax credit helps offset the expenses of children’s sports, arts, cultural, and recreational activities. 

The Graduate Retention Program is to help encourage young people to stay in the province, with the maximum tax credit benefits increasing by 20%, going from $20,000 to $24,000.

A Home Renovation Tax Credit will return under the 2025-26 plan, offering homeowners a chance to save up to $420 on renovation costs, and up to $525 for seniors. 

This measure aims to spur home improvement projects while reducing out-of-pocket costs.

First-time homebuyers will see a larger tax credit as well. 

The Saskatchewan First-Time Homebuyers Tax Credit maximum benefit is rising by 50%, from $1,050 to $1,575. 

Those looking to start a business can expect continued relief too, as the small business tax rate will remain at one percent. 

This rate was set temporarily in previous years, but the budget makes it permanent, benefiting more than 35,000 small businesses at an annual corporate tax saving of $50 million.

Additionally, a new Saskatchewan Class 1 Truck Driver Training Rebate Program will be introduced, helping prospective commercial drivers enter a sector that is crucial to the province’s economy.

While many of the 2025-26 measures are new or expanded, the province is also continuing a range of long-standing initiatives. 

These include the Seniors Drug Plan, the Children’s Drug Plan, coverage for continuous and flash glucose monitoring, and ambulance coverage for seniors. 

Home care services, autism services, and the Saskatchewan Aids to Independent Living (SAIL) program will also receive ongoing funding.

The province’s Seniors Income Plan, Saskatchewan Housing Benefit, and Rental Housing Supplement are set to continue. 

Meanwhile, the Provincial Sales Tax (PST) Rebate on New Home Construction, the Secondary Suite Incentive, and the Saskatchewan Advantage Scholarships will remain in effect, helping families and individuals facing financial pressures.

The government has also announced reduced education property tax mill rates to offset rising property assessment values. 

By lowering mill rates across all property classes, total provincial education property tax revenue will remain unchanged from the previous budget, except for growth due to newly constructed properties. 

This policy is expected to save property owners more than $100 million each year.

Another key affordability step is the extension of the carbon tax exemption on home heating. 

Provincial officials say this continuation could save the average Saskatchewan family about $480 in 2025. 

The government notes that home heating is crucial for residents during harsh prairie winters, and extending the exemption helps households manage their monthly bills.

With these initiatives, the 2025-26 budget strengthens the province’s focus on keeping Saskatchewan affordable. 

By combining tax cuts, credits, and expanded benefit programs, officials say the government is aiming to ensure residents of all income levels feel the effects of economic growth. 

As Saskatchewan’s population continues to rise, the province appears committed to balancing that expansion with accessible and reasonably priced living conditions.