Saskatchewan Provincial Budget Tax Updates 2024-2025
Overview
On March 19, 2024, Saskatchewan’s government has presented its 2024-2025 budget “Classrooms, Care & Communities”. This comprehensive summary highlights the key changes that will influence Saskatchewan’s tax environment in the coming years.
Personal Income Tax Measures
There are no proposed changes to personal income tax rates for 2024.
The income tax rates for the 2024 taxation year, based your taxable income, are as follows:
| Taxable income | Rate |
| $52,057 or less | 10.50% |
| More than $52,057 but not more than $148,734 | 12.50% |
| More than $148,734 | 14.50% |
The current personal combined income tax rates for top marginal tax rate in 2024 are outlined below:
| Taxable income above $246,752 | Rate |
| Interest/regular income | 47.50% |
| Capital gains | 23.75% |
| Eligible dividends | 29.64% |
| Non‑eligible dividends | 40.86% |
Corporate Income Tax Measures
There are no proposed changes to corporate income tax rates or the $600,000 small-business limit for 2024.
The corporate income tax rates for Saskatchewan in 2024 are as follows:
The 2024-25 Budget maintains the small business tax rate at the current rate of 1% until June 30, 2025. It was initially scheduled to return to 2% in July 2024 .
Saskatchewan Technology Start-Up Incentive (STSI)
This program offers a non-refundable 45% tax credit to Saskatchewan-based investors who invest in early-stage technology startups that qualify as Eligible Technology Startup Businesses (ESBs).
The 2024-25 Budget doubles the annual program cap on the amount of non-refundable tax credits that may be issued to $7 million annually; expands eligibility to start-ups in the cleantech and all agtech sectors; and extends the program by one year to March 31, 2027.
Saskatchewan Critical Mineral Innovation Incentive (SCMII) and Saskatchewan Critical Minerals Processing Investment Incentive (CMPII)
To help advance the province’s Critical Minerals Strategy and to promote Saskatchewan as a highly competitive jurisdiction across the entire value chain, the 2024-25 Budget introduces the Saskatchewan Critical Mineral Innovation Incentive (SCMII) and the Critical Mineral Processing Investment Incentive (CMPII).
The SCMII offers transferable Crown royalty/freehold production tax credits for qualified innovation commercialization projects at a rate of 25% of eligible projects costs. The SCMII program will apply to pilot projects as well as commercial scaling projects, and projects executed on multiple sites or that include multiple phases may be considered eligible for the program under a single project application.
The CMPII complements the new SCMII program and offers transferable Crown royalty/freehold production tax credits for qualified greenfield or brownfield value-added processing projects at a rate of 15 per cent of eligible program costs.
Official launch of both program is expected in late spring 2024.
Saskatchewan Petroleum Innovation Incentive (SPII)
The Saskatchewan Petroleum Innovation Incentive (SPII) offers transferable Crown royalty and freehold production tax credits for qualified innovation commercialization projects at a rate of 25 per cent of eligible project costs.
The 2024-25 Budget extends the application period an additional five years and increases the program funding cap to a maximum of $100 million in royalty credits.
The eligibility of helium and lithium will continue under SPII until the launch of the new SCMII program, at which time helium and lithium eligibility will be transitioned into SCMII.
Oil and Gas Processing Investment Incentive (OGPII)
The Oil and Gas Processing Investment Incentive (OGPII) offers transferable Crown royalty and freehold production tax credits for qualified greenfield or brownfield value-added projects at a rate of 15 per cent of eligible program costs.
The 2024-25 Budget extends the program an additional five years and increases the program funding cap to a maximum of $500 million in Crown royalty credits.
The eligibility of helium and lithium will continue under OGPII until the launch of the new CMPII program, at which time helium and lithium eligibility will be transitioned into CMPII.
Saskatchewan Commercial Innovation Incentive (SCII)
The Saskatchewan Commercial Innovation Incentive (SCII or ‘Patent Box’) is a tax incentive that offers eligible corporations a reduction of the provincial corporate income tax rate up to 6% for 10 consecutive years for eligible corporations that commercialize their qualifying intellectual property in Saskatchewan. The incentive can be extended for an additional 5-year period if at least 50 per cent of the related research and development (R&D) occurred and was conducted in Saskatchewan.
The 2024-25 Budget extends the program by one year to allow for a program review.
Multi-lateral Well Program (MLWP)
The 2024-25 Budget introduces the Multi-Lateral Well Program, which will facilitate the development of previously inaccessible or uneconomic oil plays and will attract increased oil well drilling to Saskatchewan.
The Multi-lateral Well Program (MLWP) offers an additional volumetric drilling incentive for eligible multi-lateral horizontal oil wells drilled on or after April 1, 2024, and on or before March 31, 2028.
The latest generation of multi-lateral wells represents a significant advancement in drilling techniques in Canada, and can be drilled in various configurations, enhancing access to oil reservoirs and consequently boosting the recovery factor while simultaneously cutting down drilling expenses and enhancing reservoir management. They also reduce the need for surface leases and facilities, thereby improving the economic viability of oil production and facilitating the capture of associated natural gas.
Other Tax Measures
Tax Administration
The 2024-25 Budget introduces initiatives aimed at tackling recurrent instances of deliberate non-compliance by individuals or entities who avoid remitting the consumption taxes they owe, including taxes collected from customers but not remitted to the government. Amendments to the Revenue and Financial Services Act in the Spring 2024 will be introduced to enhance collection tools, increase penalties, preventing tax avoidance, clarifying compliance obligations, and increasing associated monitoring.
More Information
For further information, visit https://budget.saskatchewan.ca/
