Released on April 7, 2025
The 2025-26 Budget delivers affordability for the people of Saskatchewan. In this year's budget, record investments are being made in health care, education and community safety, in addition to delivering more affordability measures than ever before.
"This budget follows through on our promise to ensure Saskatchewan remains the most affordable place in Canada to live, work, raise a family and start a business," Deputy Premier and Minister of Finance Jim Reiter said.
The taxation changes introduced in the 2025-26 Budget, including the initiatives in The Saskatchewan Affordability Act, provide over $250 million in tax savings this year. This is in addition to the more than $2 billion in affordability measures in each and every budget.
Included in these changes are the largest personal income tax reduction in the province since 2008 by raising the basic personal exemption, spousal and equivalent-to-spouse exemption and dependent child exemption by $500 a year for the next four years - over and above the impact of indexation. Upon full implementation, an additional 54,000 residents will no longer be paying provincial income tax.
"This year's budget reduces income taxes for every resident, family and small business in the province," Reiter said. "It also helps make life more affordable for seniors, families with children, persons with disabilities, caregivers, new graduates, first-time homebuyers, people renovating their homes and more."
Families benefit from the Fertility Treatment Tax Credit, helping individuals or couples cover costs associated with fertility treatments. Doubling the Active Families Benefit tax credit and raising the qualifying income threshold to $120,000 will make accessing children's sports, arts, cultural and recreational activities more affordable.
Seniors receive an increase in the senior supplement amount by $500 annually for the next four years, starting in 2025 - over and above the impact of indexation. An increase to the Personal Care Home Benefit will help more than 2,000 low-income seniors with the cost of living in a licensed personal care home.
The Graduate Retention Program has also increased, with a maximum benefit of $24,000 for students who live and work in Saskatchewan after graduating from a post-secondary institution. The Saskatchewan Advantage Scholarship provides up to $3,000 for Grade 12 students who will be attending post-secondary institutions in the province.
Making housing more affordable is also a priority. As a result, all education property tax mill rates have been reduced to absorb the increase in property assessment values and ensure this assessment year is revenue neutral for the province. This change will save property owners in the province more than $100 million annually. Reinstating the Home Renovation Tax Credit saves residents up to $420 and seniors $525 annually in provincial income tax. The First-Time Homebuyers' Tax Credit maximum benefit increased to $1,575, making homeownership more attainable for first-time homebuyers, and the PST Rebate on New Home Construction was made permanent.
The 2025-26 Budget also delivers for individuals receiving income assistance, with a two per cent increase for nearly 20,000 Saskatchewan Income Support clients and more than 18,000 Saskatchewan Assured Income for Disability clients. Beginning July 1, 2025, the Saskatchewan Low-Income Tax Credit will increase by five per cent annually for the next four years - over and above the impact of indexation - benefiting more than 300,000 individuals and families in the province.
Affordability measures are also increasing for persons with disabilities and caregivers. The Disability Tax Credit and the Disability Tax Credit supplement for children under 18 both increase by 25 per cent, in addition to indexation. The Caregiver Tax Credit also increases by 25 per cent, in addition to indexation, which provides financial support for families who care for adult children or parents with physical or mental impairments.
In addition to measures that help make life more affordable, the 2025-26 Budget includes measures that support our growing province. The Small Business Tax Rate permanently remains at one per cent, which benefits more than 35,000 small businesses and saves them over $50 million annually in corporate income taxes. The Small and Medium Enterprise Investment Tax Credit provides a non-refundable tax credit for individuals or corporations that invest in the equity of eligible Saskatchewan small and medium enterprise, while the Saskatchewan Class 1 Truck Driver Training Rebate Program supports individuals seeking their commercial driving licence.
To learn more about the Government of Saskatchewan's affordability measures and other 2025-26 Budget initiatives, visit: budget.saskatchewan.ca.
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