2022 Saskatchewan Budget Highlights

On March 23, 2022, Saskatchewan Minister of Finance Donna Harpauer tabled the 2022 Budget. Titled Back on Track, the Budget includes key investments in health, education and capital projects to strengthen the Province’s economy, as well as incentives to help keep life affordable for families.

A. Income Tax Measures

Business Tax Measures

Corporate Tax Rates

No new corporate income tax rate changes were announced in this year’s Budget. The current corporate income tax rates for 2022 are summarized below:

M&P – Manufacturing and Processing

As previously announced, the small business corporate income tax rate will return to one percent on July 1, 2022, and to two percent on July 1, 2023. The small business rate income threshold will remain at $600,000.

Enhancement of the Saskatchewan Value-added Agriculture Incentive (SVAI)

The SVAI is a 15 percent non-refundable tax credit in respect of capital expenditures of $10 million or more on newly constructed or expanded value-added agricultural facilities in the Province. The Government has announced an increase in the tax rebate for higher levels of investment. The enhanced tax credit will vary from 15 percent to 40 percent, based on the total dollar value of investment in an eligible project. The change will be effective retroactive to the start of the program in 2018, and the credit will be capped at $250 million for a single project.

Enhancement of the Saskatchewan Technology Start-up Incentive (STSI)

The STSI provides a non-refundable 45-percent income tax credit for individual, corporate or venture capital corporations investing in eligible start-up businesses. To encourage further investment in early-stage technology start-ups and the growth of private capital in Saskatchewan, the government is increasing the STSI tax credit cap from $2.5 million to $3.5 million, effective April 1, 2022. 

Personal Tax Measures

Personal Tax Rates

No new personal income tax rate changes were announced in this year’s Budget. The top marginal personal income tax rate for Saskatchewan is 14.50 percent for 2022. The current top combined federal and Saskatchewan marginal rates for 2022 are summarized below:

Saskatchewan Home Renovation Tax Credit

The Saskatchewan Home Renovation Tax Credit was introduced in 2020 to help stimulate residential construction activity and improve housing affordability. Saskatchewan homeowners may claim a maximum credit of $945 in respect of eligible expenses incurred between January 1, 2022, and December 31, 2022.

B. Indirect Tax Measures

PST on Admissions and Entertainment

Effective October 1, 2022, Provincial Sales Tax (PST) exemptions for certain sporting and entertainment events will be removed. Some examples of charges which are currently exempt, but will become taxable include:

• admissions to sporting events, concerts and shows, movie theatres, museums, zoos and historical sites;
• admissions to fairs, rodeos, trade shows, arts and crafts shows;
• admissions to conferences and seminars;
• professional theatre tickets and subscriptions;
• gym, golf and curling fees and memberships; and
• hunting and fishing guide fees and outfitter services.

Some exemptions will be available, including school sports with unpaid participants, certain recreational programs for those 14 years of age and under, and certain charitable fundraising events.

PST Exemption for Audiobooks

Currently, sales of ebooks are exempt from the PST (similar to traditional books), while sales of audiobooks are taxable. Effective April 1, 2022, sales of audiobooks will be exempted from the PST to allow for equivalent treatment to ebooks.

Taxation of Tobacco Products

Effective March 24, 2022, Tobacco Tax rates will increase from 27 cents to 29 cents on cigarette sticks, from 27 cents to 35 cents per gram of loose tobacco, and from 20.5 cents to 21.8 cents on Heat-Not-Burn sticks. This measure will align the Province’s Tobacco Tax policies with other provinces, which vary the tax rates based on the nature and associated health impact of the tobacco product.

Vapour Products Tax (VPT) Exemption in Lloydminster

Effective March 24, 2022, The Lloydminster Provincial Sales Tax Exemption Regulations are amended to add the recently introduced Vapour Products Tax exemption to the list of tax-exempt purchases within the City of Lloydminster.

Takeover of Federal Carbon Tax Backstop Fuel Charge

The Province announced it is developing a proposal to take over administration of, and all revenues from, the Federal carbon tax backstop fuel charge. If successful in the proposal, the Province intends to announce its plan in Fall 2022 for how fuel charge revenues will be distributed back to households and businesses in Saskatchewan.

C. Other Tax Measures

Education and Property Taxes (EPT)

The EPT mill rates will increase for 2022. Within these changes, the differential between the highest and lowest EPT mill rates will be decreased to improve overall tax fairness.