While the budget didn’t include any specific measures or estimates related to US tariffs, the small business tax rate will remain at 1% permanently (instead of ending on June 30, 2025), and certain business investment incentives and personal tax credits were introduced or increased.
SK Budget 2025 estimates a deficit of $660.6 million for the 2024-25 fiscal year, compared to a $273.2 million deficit projected in the previous budget.
Fiscal projections for the next four years are as follows:
| Year | Projected surplus/ (deficit) |
|---|---|
|
2025–26 |
$12.2 million |
|
2026–27 |
$75.8 million |
|
2027–28 |
$143.9 million |
|
2028–29 |
$216.7 million |
The First-Time Home Buyers’ Tax Credit will increase to $15,000 (from $10,000). The credit provides a non-refundable tax credit of $1,575 (from $1,050) for eligible home purchases made on or after October 1, 2024.
The Home Renovation Tax Credit is being reintroduced to allow taxpayers to claim a non-refundable tax credit on up to $4,000 of eligible renovation expenses on their principal residences every year (up to $5,000 for seniors).The credit is available for qualifying renovations made on or after October 1, 2024 (previously available only in the period October 1, 2020 to December 31, 2022).
Effective January 1, 2025, the budget proposes a reduction to education property tax mill rates as follows:
Saskatchewan’s small business tax rate is currently at 1% and was set to return to 2% on July 1, 2025. The budget announced that the small business rate will remain at 1%.
There are no proposed changes to the $600,000 small business income limit.
Combined federal and Saskatchewan corporate tax rates
| Corporate tax rates | 2025 |
|---|---|
|
Small business tax rate (income up to $500,000) |
10% |
|
Small business tax rate (income between $500,000 and $600,000) |
16% |
|
Manufacturing and processing tax rate (income in excess of small business income limit) |
25% |
|
General corporate tax rate |
27% |
The budget proposes a new non-refundable tax credit effective July 1, 2025. The credit is equal to 45% of the equity investment made (up to certain maximums) in an eligible small- and/or medium-sized business by certain individuals or corporations.
Tax credits of up to $7 million in total will be granted each year to successful applicants on a first-come, first-served basis. Additional program details are expected in the spring. Learn more and determine your eligibility here.
This new program offers incentives to revitalize low producing, suspended or inactive oil wells by drilling new horizontal sections. The program applies to eligible wells drilled from April 1, 2025 to March 31, 2029.
More information on the program and eligibility criteria can be found on to province’s website or by contacting the Ministry of Energy and Resources.
The acceptance period for new applications for the Saskatchewan Commercial Innovation Incentive is extended to June 30, 2027 (from 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.
The acceptance period for new applications for the Oil Infrastructure Investment Program is extended to March 31, 2029 (from March 31, 2025). The end date for credits to be claimed for completed projects was also extended to 2040 (from 2035). This program, originally introduced in the 2019-2020 budget, provides a 20% transferable Crown royalty and freehold production tax credit for qualifying projects that increase the province’s pipeline capacity. For additional details on the program and eligibility criteria, contact the Ministry of Energy and Resources.
The indexed personal tax brackets and the respective marginal tax rates for 2025 are as follows:
| Tax brackets | Marginal tax rates |
|---|---|
|
Income up to $53,463 |
25.50% |
|
$53,464 to $57,375 |
27.50% |
|
$57,376 to $114,750 |
33.00% |
|
$114,751 to $152,750 |
38.50% |
|
$152,751 to $177,882 |
40.50% |
|
$177,883 to $253,414 |
43.50% |
|
$253,415 and over |
47.50% |
The top combined federal and Saskatchewan marginal tax rates for 2025 are as follows:
| Taxable income | 2025 |
|---|---|
|
Salary/interest |
47.50% |
|
Capital gains |
23.75% |
|
Eligible dividends |
29.6% |
|
Non-eligible dividends |
40.86% |
Each of the basic personal exemption, spousal and equivalent to spouse exemption, dependent child exemption, and senior supplement will be increased by $500 annually for the next four years, in addition to any annual inflationary increases. This will result in tax savings of roughly $52.50 for each of the credits taxpayers are entitled to in 2025 and $210 for each of the credits taxpayers are entitled to by 2028.
The Disability Tax Credit, Disability Tax Credit Supplement for persons under 18, Caregiver Tax Credit, and the Infirm Dependent Tax Credit will increase by 25% effective January 1, 2025.
The Graduate Retention Program Tax Credit (GRPTC) will increase to $24,000 (from $20,000) for post-secondary graduates that graduate on or after October 1, 2024. The GRPTC provides tuition rebates in the form of a non-refundable tax credit that is available to post-secondary graduates of eligible programs—including three- or four-year university degree, diploma, certificate, and journeyperson programs—that live and work in Saskatchewan after graduation.
Both the benefit amount and the eligible income threshold for the purposes of the Active Families Benefit doubled effective January 1, 2025. The benefit provides families earning less than $120,000 (from $60,000) with a refundable tax credit up to $300 (from $150) for each child taking part in sports and cultural activities. If the child has a disability, the amount of the credit is $400 (from $200).
The Fertility Treatment Tax Credit (FTTC) is a newly introduced program that provides a 50% refundable tax credit for a fertility treatment expense claim, effective retroactively to January 1, 2025. Expenses of up to $20,000 can be claimed (for a maximum credit of $10,000) and tax filers are limited to one claim per lifetime. Expenses claimed under the FTTC may also be claimed under the Medical Expense Tax Credit if eligible
The Saskatchewan Low-Income Tax Credit (SLITC) will be enhanced by 5% per year over the next four years, in addition to any annual inflationary increases. The SLITC is available in full for families with a net income less than $38,590 and is reduced by 2.88% of income over $38,590
The PST Rebate for New Home Construction program is now permanent. Previously the program was only available if individuals took possession of the home before April 1, 2026. The PST credit is for up to 42% of the PST paid on a new home purchase, provided certain criteria are met. The credit is available for newly built homes with a price of up to $450,000 (excluding the value of the land) and a reduced credit is available for newly built homes with a price of between $450,000 and $550,000 (excluding the value of the land).
The annual road usage charge for electric vehicles will increase to $300 (from $150) per vehicle effective June 1, 2025.
The sale of all vapour liquids, products and devices will be subject to PST effective June 1, 2025.
Purchases of vapour products within the City of Lloydminster will no longer be exempt from the vapour products tax effective June 1, 2025.
Have questions? Let’s talk. Contact your local advisor or reach out to us here.
Visit our Budget 2025 hub to learn more about all federal and provincial budgets.
Disclaimer
The information contained herein is general in nature and is based on proposals that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice or an opinion provided by Doane Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, specific circumstances or needs and may require consideration of other factors not described herein.
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