Saskatchewan Provincial Budget Tax Updates 2026

March 27, 2026
11:00 am

Overview

On March 18, 2026, the Government of Saskatchewan tabled its 2026-27 provincial budget, Protecting Saskatchewan. This comprehensive summary highlights the key changes that will influence the provincial tax environment in the coming years.

Personal Income Tax Measures

The Budget introduces no change to the personal income tax rates. The income tax rates for the 2026 taxation year, based on your taxable income, remain as follows:

Taxable income	Rate
$54,532 or less	10.50%
Over $54,532 up to $155,805	12.50%
Over $155,805	14.50%

The current personal combined income tax rates for top marginal tax rates in 2026 are outlined below:

Taxable income above $258,482	Rate
Interest/regular income	47.50%
Capital gains	23.75%
Eligible dividends	29.64%
Non‑eligible dividends	41.34%

Increasing Basic Personal Income Tax Credits

In December 2024, the government of Saskatchewan introduced the Saskatchewan Affordability Act as part of a broader effort to address rising living costs for residents. The 2026-27 Budget marks the second year of the four-year commitment made under this Act, continuing to deliver meaningful affordability relief through enhancements to personal income tax credits.

For the 2026 taxation year, the applicable non-refundable personal tax credit amounts are:

Basic personal amount: $20,381.
Spousal and equivalent-to-spouse amount: $20,381 (subject to reduction based on spouse/dependent net income).
Dependent child amount: $8,358 per eligible child.
Senior supplementary amount: $2,569.

These amounts reflect the second annual $500 increase under the Act, in addition to regular indexation, and will continue to increase through 2028.

Volunteer First Responders Tax Credit

The 2026-27 Budget announced that the non-refundable tax credit for volunteer firefighters, search and rescue volunteers, and emergency medical first responders will double from $3,000 to $6,000, effective January 1, 2026.

Corporate Income Tax Measures

There are no proposed changes to corporate income tax rates or the $600,000 small-business limit for 2026. The corporate income tax rates for Saskatchewan in 2026 are as follows:

	Rate	Federal and provincial tax rate[1]
Small-business tax rate (up to $500K)	1.00%	10.00%
Small-business tax rate (from $500K to $600K)	1.00%	16.00%
Manufacturing and processing tax rate	10.00%	25.00%
General corporate tax rate	12.00%	27.00%

Expansion of the Research and Development (R&D) Tax Credit

The 2026-27 Budget expands the R&D tax credit to further support business investment in innovation. Previously, Canadian-controlled private corporations (CCPCs) could claim a 10% refundable tax credit on the first $1 million of annual qualifying expenditures; this limit has now been doubled to $2 million. Expenditures in excess of that limit, as well as qualifying expenditures by non-CCPCs, remain eligible for a 10% non-refundable tax credit. Combined refundable and non-refundable credits are subject to a $1 million annual maximum.

The budget also broadens the definition of qualifying expenditure to include eligible capital expenditures, such as the cost of new machinery and equipment and related leasing costs.

Extension of the High Water-Cut Oil Well Program

The 2026-27 Budget extends the High Water-Cut Oil Well Program by five years to March 31, 2031. The minimum investment threshold per well will also increase from $20,000 to $30,000 to reflect inflationary pressures.

Extension of the Saskatchewan Chemical Fertilizer Incentive (“SCFI”)

The SCFI provides a 15% non-refundable corporate income tax credit on qualifying capital expenditures of at least $10 million in respect of new or expanded eligible fertilizer production facilities. The 2026-27 Budget extends the program by five years, such that projects that receive conditional approval on or before December 31, 2026, will have until December 31, 2031, to incur the required capital investment.

Crown Timber Dues

Crown timber dues paid by forestry operators for harvesting timber from provincial Crown land are calculated based on the volume of timber harvested. The dues consist of a fixed base component and a variable incremental component, the latter applying only when market prices for forest products exceed prescribed trigger prices.

The 2026-27 Budget revises the incremental component by increasing these trigger prices (retroactive to January 1, 2026), thereby reducing the circumstances in which incremental dues are payable, while leaving base dues unchanged. Beginning April 1, 2027, trigger prices will be adjusted annually based on Canadian benchmark industry production cost data.

Corporation Capital Tax (“CCT”)

The 2026-2027 Budget introduces changes to the CCT regime applicable to financial institutions and Crown corporations. In particular, the tax rate for large financial institutions will increase from 4% to 6% effective April 1, 2026. At the same time, the tax will be eliminated for small financial institutions. The tax applicable to Crown corporations will also be reduced and eventually eliminated in 2027, along with the telecommunications surtax.

For further information, visit 2026-27-Budget-Document-WEB.pdf

[1] Federal corporate income tax rates on qualifying zero-emission technology manufacturing profits are temporarily reduced by 50%, lowering the general rate to 7.5% (from 15%) and the CCPC rate to 4.5% (from 9%), for taxation years from 2022 through 2031. These reduced rates will then be gradually phased out for taxation years beginning in 2032 through 2034.

Contact Our Team Of Experts

This article was prepared by the individuals listed below. For further information on the above, we invite you to please reach out to Danny Guérin of Andersen Inc.