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Canada | Saskatchewan Budget 2026
- The Saskatchewan Budget 2026, tabled on 18 March 2026, contains several tax measures affecting corporations and individuals but makes no changes to corporate or personal income tax rates.
- The refundable research and development (R&D) tax credit for Canadian-controlled private corporations is expanded, increasing the annual qualifying expenditure limit from CA$1m to CA$2m, effective from 16 December 2024.
- The large financial institution corporation capital tax rate will increase from 4% to 6%, effective 1 April 2026, while the small financial institution capital tax will be eliminated from the same date.
On 18 March 2026, Saskatchewan Finance Minister Jim Reiter (the Minister) tabled the province's fiscal 2026 budget. The budget contains several tax measures affecting corporations and individuals.
The Minister anticipates a deficit of CA$819.4m for 2026-27 and projects deficits for each of the next three years, with a surplus projected for 2030-31.
Following is a brief summary of the key tax measures.
Business tax measures
Corporate income tax rates
No changes are proposed to the corporate income tax rates or the CA$600,000 small-business limit.
Saskatchewan's 2026 corporate income tax rates are summarized in Table A.
Table A — 2026 Saskatchewan corporate income tax rates1
|
Saskatchewan |
Federal and Saskatchewan combined |
|
|---|---|---|
|
Small-business tax rate2 |
1.00% |
10.00% (up to CA$500k) 16.00% (CA$500k-CA$600k) |
|
General manufacturing and processing tax rate3 |
10.00% |
25.00% |
|
General corporate tax rate4,5 |
12.00% |
27.00% |
1 The rates represent calendar-year-end rates unless otherwise indicated.
2 The federal corporate income tax rates for manufacturers of qualifying zero-emission technology are reduced to 7.5% for eligible income otherwise subject to the 15% federal general corporate income tax rate or to 4.5% for eligible income otherwise subject to the 9% federal small-business corporate income tax rate. These reductions are not reflected in the combined federal and Saskatchewan rates above.
3 Ibid.
4 Ibid.
5 An additional federal tax applies to banks and life insurers at a rate of 1.5% on taxable income (subject to a CA$100m exemption to be shared by group members).
Other business tax measures
The Minister also proposed the following business tax measures
Research and development tax credit
The budget expands the refundable research and development (R&D) tax credit for Canadian-controlled private corporations by increasing the limit on annual qualifying expenditures from CA$1m to CA$2m, effective retroactive to 16 December 2024. The list of qualifying expenditures for all corporations is also expanded to include capital expenditures, including the cost of new machinery, equipment and related lease or rental costs. These measures are being adopted in conjunction with the federal expansion of the Scientific Research and Experimental Development incentive program.
Saskatchewan chemical fertilizer incentive
The budget announces a five-year extension to the Saskatchewan chemical fertilizer incentive. This incentive provides a nonrefundable, nontransferable 15% income tax credit on capital expenditures valued at CA$10m or more for newly constructed or expanded eligible chemical fertilizer production facilities in Saskatchewan. Eligible corporations that receive conditional approval by 31 December 2026 will now have until 31 December 2031 to meet the minimum CA$10m capital investment threshold.
Corporation capital tax
- Large financial institutions — The budget announces an increase in the large financial institution corporation capital tax (CCT) rate from 4% to 6%, effective 1 April 2026.
- Small financial institutions — The budget announces the elimination of the small financial institution CCT, effective 1 April 2026.
- Crown corporations — The budget announces a reduction to the federal and provincial commercial Crown corporation CCT rate from 0.6% to 0.3%, effective 1 April 2026. Both the CCT on federal and provincial commercial Crown corporations and the CCT surtax on telecommunications will be eliminated, effective 1 April 2027.
Personal tax
Personal income tax rates
The budget does not include any changes to personal income tax rates.
The 2026 Saskatchewan personal income tax rates are summarized in Table B.
Table B — 2026 Saskatchewan personal income tax rates
|
First-bracket rate |
Second-bracket rate |
Third-bracket rate |
|---|---|---|
|
CA$0 to CA$54,532 |
CA$54,533 to CA$155,805 |
Above CA$155,805 |
|
10.50% |
12.50% |
14.50% |
For taxable income exceeding CA$155,805, the 2026 combined federal-Saskatchewan personal income tax rates are outlined in Table C.
Table C — Combined 2026 federal and Saskatchewan personal income tax rates
|
Bracket |
Ordinary income1 |
Eligible dividends |
Non-eligible dividends |
|---|---|---|---|
|
CA$155,806 to CA$181,440 |
40.50% |
19.98% |
33.29% |
|
CA$181,441 to CA$258,4822 |
43.79% |
24.53% |
37.08% |
|
Above CA$258,482 |
47.50% |
29.64% |
41.34% |
1 The rate on capital gains is one-half the ordinary income tax rate.
2 The federal basic personal amount comprises two elements: the base amount (CA$14,829 for 2026) and an additional amount (CA$1,623 for 2026). The additional amount is reduced for individuals with net income exceeding CA$181,440 and is fully eliminated for individuals with net income exceeding CA$258,482. Consequently, the additional amount is clawed back on net income exceeding CA$181,440 until the additional tax credit of CA$227 is eliminated; this results in additional federal income tax (e.g., 0.29% on ordinary income) on net income between CA$181,441 and CA$258,482.
Personal tax credits
The budget proposes to increase the volunteer first responders' tax credit to CA$6,000 from CA$3,000, beginning in 2026. This nonrefundable credit is for volunteer firefighters, volunteer emergency medical first responders, and search and rescue volunteers who perform at least 200 hours of eligible volunteer services in a year.
Other tax measures
High water-cut oil well program
The budget announces a five-year extension to 31 March 2031 for the high water-cut oil well (royalty rate reduction) program. The minimum investment per well will also be increased from CA$20,000 to CA$30,000.
Saskatchewan technology start-up incentive
The budget announces the expansion of the existing Saskatchewan Technology Start-up Incentive (STSI) to include eligible life sciences businesses. The STSI provides a nonrefundable 45% income tax credit for individual or corporate investments in eligible start-up businesses.
For up-to-date information on the federal, provincial and territorial budgets, visit ey.com/ca/Budget.
For additional information concerning this Alert, please contact:
Ernst & Young LLP (Canada), Saskatoon
- Ryan Ball
- Wes Unger
- Luke Hergott
For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.
Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor