Key updates from Saskatchewan’s 2026 budget

Saskatchewan’s 2026–27 budget, Protecting Saskatchewan, introduces targeted tax and revenue measures to support affordability, encourage investment, and promote growth—while maintaining a focus on fair and consistent taxation. 

For individuals, the budget continues the province’s multi-year personal income tax reduction plan through further increases to key non-refundable credit amounts and enhancements to the Saskatchewan Low-Income Tax Credit. For businesses, the budget expands and extends select incentives—most notably through enhancements to the Research and Development Tax Credit and targeted resource-sector measures. 

Personal income tax measures 

No personal income tax rate changes were announced in this year’s budget. The current personal combined income tax rates for 2026 are outlined below: 

• Increased personal non-refundable credit amounts (2025–2028)- The following credit amounts will continue to be increased by another $500 annually in 2026 through 2028 (in addition to indexation): 

  • the basic personal exemption,  

  • spousal and equivalent-to-spouse exemption, 

  • dependent child exemption, and  

  • senior supplementary amounts  

• Basic personal amount- Will be increased from $19,491 (2025) to $20,381 (2026). 

• Dependent child amount- The claim for a dependent child under age 18 living with the claimant will be increased to $8,358 per child in 2026 (up from $7,704 in 2025). 

• Senior supplementary amount (65+)- This amount will be increased to $2,569 in 2026 (up from $2,028 in 2025). 

• Low-Income Tax Credit enhancements- This was enhanced by 5% in 2025 and will be enhanced by another 5% in 2026, followed by annual 5% increases for the next two years (in addition to indexation).  

• Volunteer First Responders’ tax credit (PIT)- for individuals with at least 200 hours of eligible volunteer service per year, the non-refundable credit amount will be doubled from $3,000 to $6,000. 

Business and industry income tax measures 

No corporate income tax rate changes were announced in this year’s budget. Corporate income tax rates for 2026 are outlined below: 

• R&D tax credit (CIT)- Expanded to apply to the first $2 million of qualifying expenditures (up from $1 million) for Saskatchewan Canadian-controlled private corporations (CCPCs). The credit now also includes eligible capital expenditures (e.g., machinery and equipment) and related lease or rental costs for both CCPCs and non-CCPCs. 

• High Water-Cut Oil Well Program- Program eligibility is extended to March 31, 2031. The minimum qualifying investment per well increases from $20,000 to $30,000. 

• Saskatchewan Chemical Fertilizer Incentive- Extended for companies that receive conditional approval by December 31, 2026, allowing them until December 31, 2031 to meet the minimum investment threshold. 

• Crown timber dues- Incremental trigger prices for all timber products increase retroactive to January 1, 2026 (base dues unchanged) to reflect rising production costs. Beginning April 1, 2027, annual trigger price adjustments will be based on Canadian benchmark industry production cost data. 

• Corporation capital tax (CCT)- Rate and application changes include: 

  • Large financial institutions: rate increases from 4% to 6% effective April 1, 2026. 

  • Small financial institutions: CCT is eliminated effective April 1, 2026. 

  • Crown corporations: rate reduced from 0.6% to 0.3% effective April 1, 2026, then CCT removed effective April 1, 2027. 

  • Telecommunications CCT surtax: 0.9% surtax removed effective April 1, 2027. 

What this means for you 

Saskatchewan’s 2026–27 budget focuses on targeted affordability relief and investment incentives, rather than broad-based changes to personal or corporate income tax rates. These updates may create planning opportunities for both individuals and businesses. Your Baker Tilly advisor can help you assess how the measures apply to your situation.