2026 Saskatchewan Budget Highlights
On March 18, 2026, Saskatchewan Deputy Premier and Minster of Finance, Jim Reiter, released the province’s budget for the 2026-2027 fiscal year. We have highlighted selected budget measures that affect Saskatchewan individuals and small businesses.
INDIVIDUALS
Personal Tax Rates
The budget did not propose any changes to personal income tax rates. Saskatchewan indexed the 2026 brackets at an inflation rate of 2.0%.
Provincial Income Tax Brackets and Tax Rates
| 2025 Taxable Income | 2026 Taxable Income | Tax Rate |
|---|---|---|
| $0 to $53,463 | $0 to $54,532 | 10.50% |
| $53,463 to $152,750 | $54,532 to $155,805 | 12.50% |
| Over $152,750 | Over $155,805 | 14.50% |
Top Combined Saskatchewan and Federal Rates – 2026
| Other/Interest/ Salary/Pension | Capital Gains | Eligible Canadian Dividends | Non-eligible Canadian Dividends |
|---|---|---|---|
| 47.50% | 23.75% | 29.64% | 41.34% |
Top rates apply to taxable income over $258,482 based on known federal and provincial rates as of March 18, 2026.
Personal Income Tax Measures*
- Budget 2026 again raises the basic personal exemption, spousal and equivalent-to-spouse exemption, dependent child exemption and seniors’ supplementary amounts by $500 a year. 2026 is the second of an expected four-year increase (2025 to 2028).
- Budget 2026 continues to provide an increase of the Saskatchewan Low-Income Tax Credit by 5% in 2026, to be followed by a 5% increase for the next two years.
*The tax credit increases listed are over and above the increases due to the impact of indexation.
- Budget 2026 announces to double the Volunteer First Responders’ tax credits from $3,000 to $6,000.
BUSINESSES
The budget did not change any corporate income tax rates or the $600,000 small business income threshold.
Combined Corporate Tax Rates
| Income Type | Provincial | Federal | Combined Rates Calendar 2026 |
|---|---|---|---|
| General corporate | 12.00% | 15.00% | 27.00% |
| Small business – to $500,000 | 1.00% | 9.00% | 10.00% |
| Small business income – between $500,000 to $600,000* | 1.00% | 15.00% | 16.00% |
| CCPC* investment | 12.00% | 38.67% | 50.67% |
| Non-CCPC* investment income | 12.00% | 15.00% | 27.00% |
| Manufacturing and processing income | 10.00% | 15.00% | 25.00% |
*Canadian-controlled private corporation
Based on known federal and provincial rates as of March 18, 2026
Business Income Tax Measures
- Budget 2026 introduces enhancements to Saskatchewan’s Research and Development Tax Credit on qualifying R&D expenditures by Saskatchewan Canadian-controlled private corporations (CCPCs). The changes include a 10% refundable R&D Tax Credit on the first $2 million of annual qualifying expenditures (up from $1 million).
- Budget 2026 extends the Saskatchewan Chemical Fertilizer Incentive to December 31, 2031, for eligible companies that receive conditional approval by December 31, 2026. This incentive allows for a non-refundable, non-transferable 15% corporate income tax credit on capital expenditures valued at $10 million or more for new or expanded eligible chemical fertilizer facilities in Saskatchewan.
- The Corporate Capital Tax (CCT) on large financial institutions is increased to 6% (from 4%) and eliminates the 0.7% CCT on small financial institutions. The budget also reduces the CCT charged to Crown Corporations to 0.3% (from 0.6%) and completely removes the CCT on Crown Corporations and the telecommunications CCT surtax (previously 0.9%) effective April 1, 2027.
Refer to the 2026 Saskatchewan Budget for further details.
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