Affordability

The 2025-26 Budget ensures Saskatchewan remains the most affordable place in Canada to live, work, raise a family and start a business. In December 2024, The Saskatchewan Affordability Act introduced 13 commitments that are included in the budget.

Some of the highlights of the act include:

• The largest personal income tax reduction in the province since 2008;
• Upon full implementation, 54,000 Saskatchewan residents will no longer be paying provincial income tax;
• Doubling the Active Families Benefit and eligible income threshold;
• Reinstating the Home Renovation Tax Credit; and
• Maintaining the small business tax rate at one per cent.

In addition to The Saskatchewan Affordability Act the Government of Saskatchewan adjusts the provincial income tax brackets and basic tax credits to protect people from the rising cost of inflation. This practice is known as indexation. Saskatchewan residents will see more than $40 million in annual tax savings because of indexation for the 2025 taxation year.

The Government of Saskatchewan continues to provide affordability support for families, caregivers and individuals with disabilities. In the 2025-26 Budget, affordability measures for families include:

Families

• The Active Families Benefit will make it more affordable for families to access children’s sports, arts, cultural and recreational activities.
• Enhancements to the basic tax credits for the basic exemption, spousal, equivalent-to-spouse, seniors supplement and dependent child tax credits will save Saskatchewan residents $45 million in 2025.
• The Children’s Drug Plan ensures Saskatchewan families do not pay more than $25 per prescription for children aged 14 years and under.
• Continuous and flash glucose monitors are fully covered for eligible children and adults up to 24 years old and seniors aged 65 and over.
• The Fertility Treatment Tax Credit provides a one-time refundable tax credit of up to $10,000 for fertility treatment and related drug costs for families pursuing parenthood.  Autism Spectrum Disorder Individualized funding provides parents or guardians with funding to purchase services that best suit their child’s needs.
• The Saskatchewan Aids to Independent Living helps individuals with physical disabilities live a more active and independent lifestyle and supports the management of certain chronic health conditions.

Individuals with disabilities

• The Disability Tax Credit and disability supplement are designed to help individuals with severe or prolonged physical or mental impairments or their supporting family members by reducing the income tax they pay.

Caregivers

• The Caregiver Tax Credit provides financial support for families who care for adult children or parents with physical or mental impairments.

The Government of Saskatchewan understands the costs of owning or renting a home can be challenging. This is why the 2025-26 Budget offers affordability measures for homeowners and renters.

Homeowners

• More than $100 million in annual savings by reducing education property tax mill rates to absorb the increased property assessment values in each property class.
• Reinstating the Home Renovation Tax Credit so Saskatchewan residents can make improvements to their homes. This provides homeowners with the ability to save up to $420 annually in provincial income tax for eligible home renovation expenses, while seniors undertaking home renovations can save up to $525.
• A 50 per cent increase in the First-Time Homebuyers’ Tax Credit amount will see an increase from $1,050 to $1,575, making homeownership more attainable for first-time home buyers.
• The Saskatchewan Secondary Suite Initiative grant program allows homeowners to construct a new secondary suite to generate supplementary income. The program provides a 35 per cent grant of the total price to construct a new secondary suite to a maximum amount of $35,000.
• Making the PST Rebate on New Home Construction permanent, provides a rebate up to 42 per cent of the provincial sales tax paid on the purchase of a newly constructed home with a total purchase price of less than $550,000.
• The Saskatchewan Housing Benefit helps eligible Saskatchewan renters whose households spend 35 to 45 per cent or more of their income on rent and utilities. The federal government, through the National Housing Strategy, matches the Saskatchewan Housing Benefit.

The 2025-26 Budget provides affordability initiatives to assist low-income individuals with the rising costs of living.

• Beginning July 1, 2025, the Saskatchewan Low-Income Tax Credit will increase by five per cent annually for the next four years, in addition to indexation. It is a fully refundable, non-taxable benefit paid quarterly to help Saskatchewan residents with low and modest incomes. These enhancements will benefit more than 300,000 individuals and families in our province.
• An increase of two per cent for Saskatchewan Income Support (SIS) and Saskatchewan Assured Income for Disability (SAID) clients. Almost 20,000 SIS clients and more than 18,000 SAID clients are expected to receive these increased benefits.
• The Saskatchewan Housing Benefit helps eligible Saskatchewan renters whose households spend 35 to 45 per cent or more of their income on rent and utilities. The federal government, through the National Housing Strategy, matches the Saskatchewan Housing Benefit.

The 2025-26 Budget invests in initiatives to encourage students and young adults to attend post-secondary schools in Saskatchewan and work in the province once their post-secondary education is complete.

• The Graduate Retention Program provides an increased maximum benefit up to $24,000 of tuition fees paid by eligible post-secondary graduates who continue to live and work in Saskatchewan and graduate on or after October 1, 2024. This program has benefited more than 85,000 graduates, saving them over $801 million.
• The Saskatchewan Advantage Scholarship provides $750 per year, to a maximum of $3,000, to eligible Grade 12 students in Saskatchewan who attend a post-secondary institution in the province. In 2024-25, the Saskatchewan Advantage Scholarship benefited approximately 12,000 graduates. 

The 2025-26 Saskatchewan Budget is introducing more affordability measures for seniors.

• The senior supplementary amount will be increased by $500 annually for the next four years, starting in 2025, in addition to the annual indexation rates.
• The Seniors Income Plan offers up to $360 a month for eligible seniors. The plan has tripled since 2007, providing assistance to more than 14,000 seniors.
• A $10 million investment will increase the Seniors Personal Care Home Benefit monthly income threshold by $1,000 to $3,500 a month to make the cost of living in a licensed personal care home more affordable for seniors.
• The Saskatchewan Home Care Program covers 97 per cent of home care costs, including 100 per cent of nursing services that help residents receive care while maintaining their independence at home.
•  The Senior’s Drug Plan ensures that eligible Saskatchewan residents aged 65 and over pay no more than $25 per prescription for medications listed on the Saskatchewan Formulary or approved under Exception Drug Status.
• The Senior Citizens’ Ambulance Assistance Program – for Saskatchewan residents aged 65 and over – caps ground ambulance fees at $135 per eligible trip and covers interfacility transfers within the province.
• Reinstating the Home Renovation Tax Credit so Saskatchewan residents can make improvements to their homes. This provides seniors who are homeowners with the ability to save up to $525 annually in provincial income tax for eligible home renovation expenses.