The Government of Saskatchewan has introduced sweeping measures to address cost-of-living pressures with The Saskatchewan Affordability Act. Announced Monday in the Legislative Assembly, the legislation aims to solidify the province's position as the most affordable place in Canada to live, work, raise a family, and start a business through 13 key commitments.“During the recent election campaign, we heard concerns from Saskatchewan citizens about the cost-of-living pressures they are facing today,” said Deputy Premier and Finance Minister Jim Reiter. “We know these issues are not unique to our province, but we are taking action to make life more affordable for all Saskatchewan residents and families, while ensuring we still maintain a strong economy.”Key measures include the largest personal income tax reduction in the province since 2008. Personal, spousal, child, and senior exemptions will increase by $500 annually for the next four years, alongside annual tax bracket indexation to counter inflation. These changes will save a family of four earning $100,000 more than $3,400 over four years, while two seniors with a combined income of $75,000 will save more than $3,100. Over 54,000 residents will no longer pay provincial income tax by the end of the program.The Saskatchewan Low-Income Tax Credit will also rise by 5% annually over the next four years, benefitting more than 300,000 individuals and families.“This act will reduce income taxes for every resident, family, and small business in our province,” Reiter added. “It also includes additional targeted reforms to support seniors, families with children, post-secondary graduates, persons with disabilities, caregivers, first-time homebuyers, and those undertaking home renovation projects.”To boost homeownership affordability, the First-Time Homebuyers Credit will increase by 50%, and the Home Renovation Tax Credit will allow homeowners to save up to $420 annually, with seniors eligible for up to $525 in savings.Small businesses, representing over 35,000 enterprises, will continue to benefit from a reduced small business tax rate of 1%, saving more than $50 million annually in corporate income tax.Additional provisions include a 25% increase in the Disability Tax Credit and the Caregiver Tax Credit, doubling the Active Families Benefit and its qualifying income threshold, and a 20% increase in Graduate Retention Program tax credits to retain young workers in Saskatchewan.These measures build on over $2 billion in affordability initiatives already included in Saskatchewan’s budgets. Future affordability actions, set for the 2025-26 budget, will include further tax credits, benefits for personal care homes, fertility treatment support, and small business investment incentives.“Saskatchewan is committed to making life affordable while fostering a strong and inclusive economy,” Reiter said.
