2025 Saskatchewan budget tax highlights

On March 19, the Saskatchewan government released its 2025 budget. The following are highlights of the key tax measures.

Personal tax measures

No personal income tax rate changes were announced in this year’s budget. The current personal combined income tax rates for 2025 are outlined below:

The Government of Saskatchewan previously introduced the Saskatchewan Affordability Act in December 2024 to address affordability pressures. In conjunction with those changes, the budget confirmed it will proceed with several enhancements to personal income tax credits available to Saskatchewan residents.

Active Families Benefit

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

Basic personal income tax credits

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

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.

Disability and Caregiver Tax Credit

For the 2025 tax year, the Disability Tax Credit (DTC), DTC supplement for children under 18, Caregiver Tax Credit and Infirm Dependant Tax Credit amounts will all increase by 25 per cent.

Fertility Treatment Tax Credit

The budget introduces a new 50 per cent 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, retroactive to the beginning of the 2025 tax year.

First‑Time Homebuyers Tax Credit

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

Graduate Retention Program Tax Credit

The maximum benefit from the Graduate Retention Program’s tax credit will be increased by 20 per cent to $24,000 (from $20,000) for new post‑secondary graduates who graduate on or after Oct. 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 residence, to a maximum benefit of $420 annually. Seniors can claim an additional $1,000, for a maximum benefit of $525 annually.

Saskatchewan Low‑Income Tax Credit

The Saskatchewan Low‑Income Tax Credit will be increased by five per cent annually for the next four years, beginning July 1, 2025.

Corporate tax measures

The budget confirms the small business rate will remain at one per cent permanently, instead of reverting to two per cent. Corporate income tax rates for 2025 are outlined below:

New Small and Medium Enterprise Investment Tax Credit

The budget introduces a new investment tax credit, effective July 1, 2025. It is a 45 per cent non‑refundable credit for corporations (or individuals) that invest in the equity of eligible Saskatchewan small‑ to medium‑sized enterprises. Further program details will be released soon, but so far we know:

• An eligible small‑ to medium‑sized enterprise is defined as a Saskatchewan‑based business with between five and 49 employees, with a minimum of 50 per cent of those employees residing in Saskatchewan.
• Enterprises must be in either the food and beverage manufacturing or machinery and transportation equipment manufacturing sectors. Under the program, businesses can raise a maximum of $4 million in eligible investments.
• There will be an annual cap of $7 million on the total non‑refundable tax credits awarded, processed on a first‑come, first‑served basis.
• There will be 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.

Extension of Saskatchewan Commercial Innovation Incentive

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. The program applies to new horizontal sections drilled on existing low‑productivity, suspended or inactive horizontal wells from April 1, 2025 to March 31, 2029.

Oil Infrastructure Investment Program

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).

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 Jan. 1, 2025.

Home heating carbon tax exemption

The budget announced an extension of the carbon tax exemption on home heating.

Taxation of vapour products

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 electric vehicle registered in Saskatchewan will increase to $300, effective June 1, 2025.

Next steps

Contact your Baker Tilly advisor to learn more about how we can help you navigate the complexities of the Canadian tax system.

Information is current to April 7, 2025. The information contained in this release is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.