SK Budget 2024 announces that it will keep the small business tax rate at 1% until June 30, 2025 (instead of June 30, 2024); the rate will go up to 2% on July 1, 2025. The budget also enhances and introduces several business tax incentive programs to support innovation and investment. It makes no additional changes to provincial sales tax, carbon tax, and other excise taxes.
SK Budget 2024 estimates a deficit of $482.5 million for the 2023-24 fiscal year, compared to a $1.107 billion surplus projected in the previous budget. The $1.5 billion decline is primarily attributed to increased spending in agriculture due to severe drought, as well as in other sectors, like health care and education.
Fiscal projections for the next four years are as follows:
| Year |
Projected surplus / (deficit) |
| 2024-25 |
($273.2 million) |
| 2025-26 |
$18.5 million |
| 2026-27 |
$225.1 million |
| 2027-28 |
$339.6 million |
Business tax measures
Corporate tax rates
Saskatchewan’s small business tax rate is currently at 1% and was set to return to 2% on July 1, 2024. SK Budget 2024 announces the extension of the 1% small business rate to June 30, 2025. The rate is set to return to 2% on July 1, 2025.
2024 small business rates
| Period |
Provincial small business rate |
| January 1, 2024 — June 30, 2025 |
1% |
| July 1, 2025 onwards |
2% |
SK Budget 2024 proposes no changes to the $600,000 small business income limit.
Combined federal and Saskatchewan corporate tax rates
| Corporate tax rates |
2024 |
|
Small business tax rate (income up to $500,000)
|
10% |
|
Small business tax rate (income between $500,000 and $600,000)
|
16% |
| General corporate tax rate |
27% |
|
Manufacturing and processing tax rate
|
25% |
Saskatchewan Technology Start-up Incentive
SK Budget 2024 enhances the Saskatchewan Technology Start-up Incentive to:
- Double the annual program cap on non-refundable tax credits to $7 million per year
- Expand eligibility to start-ups that develop technologies in the ‘cleantech’ sector
- Extend the program by an additional year to March 31, 2027
This tax incentive intends to encourage investment in early-stage technology businesses with head offices in Saskatchewan by providing a 45% non-refundable tax credit to eligible investors with taxes owing in the province. For additional details, refer to the Innovation Saskatchewan website.
Saskatchewan Petroleum Innovation Incentive
SK Budget 2024 enhances the Saskatchewan Petroleum Innovation Incentive by:
- Extending the intake period for an additional five years to March 31, 2029
- Increasing program funding cap to $100 million (shared with the Saskatchewan Critical Minerals Innovation Incentive)
This tax incentive encourages innovation in Saskatchewan’s oil and gas industry by providing transferable Crown royalty and freehold production tax credits for eligible projects at a rate of 25% of eligible program costs. For additional details, see the province’s website.
Saskatchewan Critical Minerals Innovation Incentive
SK Budget 2024 introduces the Saskatchewan Critical Minerals Innovation Incentive to provide transferable Crown royalty and freehold production tax credits for eligible critical minerals projects at a rate of 25% of eligible program costs.
The tax incentive supports pilot and commercial scaling projects that achieve certain targets such as the management of environmental impacts or the commercialization of by-products or waste, amongst others. This incentive shares the $100 million funding cap with the Saskatchewan Petroleum Innovation Incentive. For additional details, see the province’s website.
Saskatchewan Commercial Innovation Incentive
SK Budget 2024 extends the acceptance period for new applications for the Saskatchewan Commercial Innovation Incentive to June 30, 2025. This incentive seeks to enhance intellectual property development in Saskatchewan by reducing the provincial corporate income tax rate to 6% for 10 consecutive years for eligible corporations that commercialize their qualifying intellectual property. The benefit can be extended up to 15 years if at least half of the associated research and development is conducted in the province. For additional details, see the province’s website.
Oil and Gas Processing Investment Incentive
SK Budget 2024 enhances the Oil and Gas Processing Investment Incentive by:
- Extending the program an additional five years to March 31, 2029
- Increasing the program funding cap to $500 million (from $370 million) in maximum eligible Crown royalty and freehold tax credits
This tax incentive targets qualified greenfield or brownfield value-added projects in Saskatchewan’s oil and gas industry. This incentive provides transferable Crown royalty and freehold production tax credits at a rate of 15% of eligible program costs. For additional details, see the province’s website.
Critical Minerals Processing Investment Incentive
SK Budget 2024 introduces the Critical Minerals Processing Investment Incentive to further support Saskatchewan’s critical minerals strategy, in addition to the Saskatchewan Critical Minerals Innovation Incentive. This program provides transferable Crown royalty and freehold production tax credits at a rate of 15% of eligible program costs.
This tax incentive is available to all types of new or expanded value-added processing projects in the critical minerals sector of the province. It shares the $500 million funding cap with the Oil and Gas Processing Investment Incentive. For additional details, see the province’s website.
Multi-lateral Well Program
SK Budget 2024 introduces the Multi-lateral Well Program to encourage new ‘multi-lateral’ oil well drilling configurations that can potentially increase the rates of oil recovery and thereby enable further development opportunities. This program offers transferable Crown royalty and freehold production tax incentives for new oil wells that meet certain specifications. This tax incentive applies to eligible new wells drilled between April 1, 2024 and March 31, 2028. For additional details, see the province’s website.
Personal tax measures
Personal income tax rates
SK Budget 2024 doesn’t change the personal rates. The indexed personal tax brackets and the respective marginal tax rates for 2024 are as follows:
| Tax brackets |
Marginal tax rates |
| $52,057 or less |
10.5% |
| $52,058 - $148,734 |
12.5% |
| $148,735 and over |
14.5% |
The top combined federal and Saskatchewan marginal tax rates for 2024 are as follows:
