2025 Saskatchewan Budget Highlights

Saskatchewan Minister of Finance Jim Reiter tabled the province’s 2025 budget on Wednesday, March 19, 2025. This year’s budget, titled Delivering for You, aims to deliver affordability, healthcare, education, community safety, and fiscal responsibility. The budget also includes various business measures intended to grow the economy. 

Business tax measures 

Corporate income tax rates 

The budget confirms that the small business tax rate will remain permanently at the current rate of one percent instead of returning to two percent effective June 30, 2025, as originally intended. Income eligible for this rate will remain at $600,000.  

New Small and Medium Enterprise Investment Tax Credit 

The budget introduces a new investment tax credit effective July 1, 2025. This is a 45 percent non-refundable tax credit for corporations or individuals that invest in the equity of an eligible Saskatchewan small and medium-sized enterprise.  

An eligible small and medium-sized enterprise is defined as a Saskatchewan-based business with between five and 49 employees, with a minimum of 50 percent of those employees residing in Saskatchewan. These enterprises must be in either the food and beverage manufacturing or the machinery and transportation equipment manufacturing sectors. Under the program, businesses can raise a maximum of $4 million in eligible investments. 

The Small and Medium Enterprise Investment Tax Credit will have an annual cap of $7 million on the total non-refundable tax credits awarded, processed on a first-come first-served basis. It also requires a minimum equity investment of $50,000 for corporations and $25,000 for individuals, with a minimum investment holding period of three years. Tax credits can be carried forward over seven years. 

Further program details will be released in the spring. 

Extension of Saskatchewan Commercial Innovation Incentive 

This incentive generally offers eligible corporations that commercialize their qualifying intellectual property in Saskatchewan a reduction of the provincial corporate income tax rate to six percent for 10 consecutive years. 

The budget announced a two-year extension of the new application acceptance period to June 30, 2027. The program will be expanded by reducing the scientific/technology test threshold and eliminating the new economic benefits to Saskatchewan test.  

Low Productivity and Reactivation Oil Well Program 

The budget introduces a new Crown royalty and freehold production tax volumetric drilling incentive for low-producing, suspended, or inactive wells to encourage drilling new horizontal sections to improve reservoir recovery rates. Definitions of qualifying and eligible wells under this incentive have also been announced.  

The new program will apply to new horizontal sections drilled on existing low-productivity, suspended and inactive horizontal wells from April 1, 2025, to March 31, 2029. 

Information on this program and eligibility criteria can be obtained by contacting the Ministry of Energy and Resources or visiting saskatchewan.ca.  

Oil Infrastructure Investment Program 

The Oil Infrastructure Investment Program offers a 20 percent transferable Crown royalty and freehold production tax credit on eligible project costs for qualifying projects that significantly increase provincial pipeline capacity.  

The budget announces a four-year extension of the new application acceptance period to March 31, 2029. Moreover, the end date for royalty credits to be claimed for completed projects is extended to 2040 (from 2035).  

Personal income tax measures 

The Government of Saskatchewan previously introduced the Saskatchewan Affordability Act (Act) in December 2024 to address affordability pressures. In conjunction, the budget confirmed it would proceed with several enhancements to personal income tax credits available to Saskatchewan residents. These are generally over and above the annual indexation increases assumed to be two percent annually in future years.  

Basic Personal Income Tax Credits 

The basic personal exemption, spousal and equivalent-to-spouse exemption, dependent child exemption and the seniors’ supplement will be increased by $500 annually from 2025 through 2028.  

Disability and Caregiver Tax Credit 

Effective the 2025 tax year, the Disability Tax Credit (DTC), the DTC Supplement for children under 18, the Caregiver Tax Credit, and the Infirm Dependant Tax Credit amounts will all increase by 25 percent.  

Saskatchewan Low-Income Tax Credit 

The Saskatchewan Low-Income Tax Credit will be enhanced by five percent annually for the next four years. The first increase will take effect on July 1, 2025.  

Fertility Treatment Tax Credit 

To support and expand access to fertility treatments, the budget introduces a new 50 percent refundable tax credit for eligible costs of fertility treatments incurred in Saskatchewan, up to $20,000. Each tax filer can claim one lifetime fertility treatment expense. This measure is introduced retroactive to January 1, 2025.  

Active Families Benefit 

As of January 1, 2025, the Active Families Benefit refundable tax credit will double to $300 per child and $400 per child with a disability. Additionally, the family income threshold to qualify for this credit will be doubled from $60,000 to $120,000.  

Graduate Retention Program Tax Credit 

The maximum benefit from the Graduate Retention Program’s tax credit will be increased by 20 percent to $24,000 (from $20,000) for new post-secondary graduates who graduate on or after October 1, 2024.  

Home Renovation Tax Credit 

The budget reinstates the Home Renovation Tax Credit, allowing homeowners to claim a non-refundable tax credit on eligible home renovation expenses of up to $4,000 annually on their primary residences, to a maximum benefit of $420 annually. Seniors can claim an additional $1,000, for a maximum benefit of $525 annually. 

First-Time Homebuyers Tax Credit 

The budget increases the Saskatchewan First-Time Homebuyers Tax Credit maximum by 50 percent, from $10,000 to $15,000 for eligible home purchases. The change is effective October 1, 2024, and will increase the maximum benefit for an individual from $1,050 to $1,575. 

Class 1 Truck Driver Training Rebate 

The budget introduces the Saskatchewan Class 1 Truck Driver Training Rebate Program for individuals seeking a commercial driving licence. 

Other tax measures 

Education property tax 

The budget announced a reduction to all education property tax mill rates to absorb the increase in property assessment values in each property class effective January 1, 2025. The property tax mill rates for the four property classes will be reduced as follows:  

• Agriculture: changed to 1.07 (from 1.42) 

• Residential: changed to 4.27 (from 4.54) 

• Commercial/Industrial: changed to 6.37 (from 6.86) 

• Resource: changed to 7.49 (from 9.88) 

Carbon tax exemption on home heating 

The budget announced an extension of the carbon tax exemption on home heating, which is expected to save the average Saskatchewan family approximately $480 in 2025. 

Taxation of vapour products 

Given that Alberta has now signed on to the federal Coordinated Vaping Products Taxation Agreement, the budget confirms the removal of the vapour products tax exemption in Lloydminster effective June 1, 2025.  

In addition, the budget announced the Provincial Sales Tax (PST) base will be expanded to include the sale of all vapour liquids, products and devices effective June 1, 2025.  

Taxation of electric vehicles 

The budget announced the annual Road Use Charge for each passenger EV registered in Saskatchewan will increase to $300 (from $150). The new annual rate is effective June 1, 2025. 

More details and highlights of the 2025 Saskatchewan budget can be found here.