Saskatchewan gov’t attempts to keep life affordable in 2025

Saskatchewan residents can look forward to more financial relief in 2025 as Premier Scott Moe’s government implements measures to combat inflation and make life more affordable. 

Through the Saskatchewan Affordability Act and annual income tax indexation, the government is working to ensure the province remains Canada’s most affordable place to live.

Deputy Premier and Finance Minister Jim Reiter highlighted the importance of these initiatives in safeguarding against the effects of inflation.

"Every year, our government adjusts the provincial income tax brackets and basic tax credits to protect Saskatchewan citizens from the rising cost of inflation, which is also known as indexation," said Reiter. 

"This provides safeguards against the inflationary pressures that would otherwise push taxpayers into higher tax brackets and reduce the actual value of tax credits. Given the current affordability concerns, it is important we take these steps to help make life more affordable for the people of Saskatchewan." 

The level of indexation for 2025 will be 2.7%, matching the national average inflation rate from October 2023 to September 2024.

This adjustment will save Saskatchewan residents $40.5 million in annual taxes.

The savings are particularly notable for families. 

"A family of four will not pay any Saskatchewan income tax on the first $63,200 of their income, the highest tax-free threshold for a family of four in Canada," said Reiter. 

"We have more than doubled this tax-free amount during our time in government, which continues to provide significant savings for people throughout the province and helps make life more affordable."

The Saskatchewan Affordability Act, recently passed in the Legislative Assembly, further builds on these savings. 

The Act increases personal income tax exemptions for basic personal, spousal, and child amounts, as well as the seniors supplement, by $500 annually for the next four years, in addition to annual indexation adjustments.

Special attention is given to vulnerable groups, with enhancements to the Saskatchewan Low-Income Tax Credit and increased tax credits for persons with disabilities and their caregivers.

These initiatives complement over $2 billion in affordability measures already included in the province’s annual budgets, reinforcing the government’s commitment to addressing cost-of-living concerns and ensuring financial stability for Saskatchewan residents.