Saskatchewan Budget 2026

The budget boosts various personal tax credits and doubles the qualifying expenditure limit for the Research and Development Tax Credit. It also amends the Corporation capital tax regime and extends the Saskatchewan Chemical Fertilizer Incentive.

SK Budget 2026 estimates a deficit of $1.21 billion for the 2025-26 fiscal year, compared to a $12.2 million surplus projected in the previous budget. This is primarily due to the removal of the federal carbon tax rate rider from SaskPower customer bills and expenses related to significant wildfire response efforts and rising demand for human services.

Fiscal projections for the next five years are as follows: 

Business tax measures

Corporate tax rates

Saskatchewan’s small business tax 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 

Research and Development Tax Credit 

The budget doubles the annual qualifying expenditure limit eligible for the 10% refundable Research and Development (R&D) Tax Credit for Saskatchewan Canadian-controlled private corporations (CCPCs) to $2 million (from $1 million). Qualifying expenditures exceeding $2 million, and those incurred by non-CCPCs, are eligible for a 10% non-refundable R&D tax credit. The combined refundable and non‑refundable R&D tax credits that may be claimed by a corporation are capped at $1 million annually. 

Qualifying expenditures are also expanded to include eligible capital expenditures, such as new machinery, equipment, and related lease or rental costs.

Corporation capital tax 

The budget makes changes to the Corporation capital tax (CCT), which applies to certain financial institutions and commercial Crown corporations that have paid-up capital in excess of $10 million. Specifically, the budget increases the CCT on large financial institutions to 6% (from 4%) and eliminates the 0.7% CCT for smaller financial institutions—meaning institutions with $1.5 billion or less in associated group Canadian taxable paid-up capital. In addition, the CCT on provincial and federal Crown corporations reduces to 0.3% (from 0.6%) of taxable paid-up capital allocated to Saskatchewan. These measures will be effective April 1, 2026.  

The CCT on Crown corporations and the telecommunications CCT surtax will be fully eliminated effective April 1, 2027.

See the provincial government’s website for more information. 

Saskatchewan Chemical Fertilizer Incentive 

The budget extends the Saskatchewan Chemical Fertilizer Incentive by five years. Eligible companies that receive conditional approval on or before December 31, 2026, will have until December 31, 2031, to meet the minimum $10 million capital investment threshold.   
This incentive is a non-refundable corporation income tax credit equal to 15% of capital expenditures of $10 million or more incurred for newly constructed or expanded eligible chemical fertilizer production facilities in Saskatchewan.

Personal tax measures

Personal income tax rates 

The indexed personal tax brackets and the respective marginal tax rates for 2026 are as follows: 

The top combined federal and Saskatchewan marginal tax rates for 2026 are as follows:

Personal tax credits

The budget increases the amounts used to calculate each of the basic personal exemption, spousal and equivalent to spouse exemption, dependent child exemption, and senior supplement by $500 in addition to annual indexation for 2026. These increases are part of the four-year increase introduced in SK Budget 2025.

Saskatchewan Low-Income Tax Credit

The Saskatchewan Low-Income Tax Credit increases by 5% (in addition to annual indexation) as part of the four-year increase introduced in SK Budget 2025. The maximum benefit for this credit is $1,282, up from $1,196. These changes will apply to the benefit year beginning July 1, 2026.

Volunteer First Responders’ Tax Credit

The Volunteer First Responders’ Tax Credit will be doubled to $6,000 (from $3,000). This non-refundable tax credit is available to individuals performing at least 200 hours of eligible volunteer firefighting, search and rescue, and medical first responder services in the year.

Other notable measures

Crown timber dues

The budget revises the incremental component of Crown timber dues by increasing trigger prices for all timber products, retroactive to January 1, 2026. Incremental dues apply only when market price of timber rises above these trigger prices, so the change will reduce the circumstances in which incremental dues are payable. Base dues remain unchanged.

The government also proposes to update the trigger price annually, beginning April 1, 2027, based on Canadian benchmark industry production cost data from the previous year.

High Water-Cut Oil Well Program

The budget extends the High Water-Cut Oil Well Program eligibility period to March 31, 2031. Reduced royalty rates apply when a qualifying minimum investment of $30,000 (increased from $20,000) is made to directly improve water handling capabilities and extend the production cycle of a qualifying high water-cut oil well.

Have questions? Let’s talk. Contact your local advisor or reach out to us here.

Visit our Budget 2026 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.}