Saskatchewan families to pay no provincial income tax on first $65,000 in 2026

REGINA — A Saskatchewan family of four will pay no provincial income tax on its first $65,000 of income in 2026 as the province moves to the second phase of its four-year income tax reduction plan.

The change, combined with continued indexation, gives Saskatchewan the highest tax-free income threshold in Canada, the provincial government says.

Deputy Premier and Finance Minister Jim Reiter said the measures are aimed at keeping Saskatchewan affordable as costs continue to rise.

“We want to ensure Saskatchewan remains the most affordable place to live in Canada,” Reiter said. “That is why our government is raising the personal, spousal and child tax exemptions, as well as the seniors’ supplement, by $500 each year over four years.”

Several tax credits designed to support affordability will also increase. These include the low-income tax credit, disability tax credit and supplement, caregiver tax credit, personal care home benefit, active families benefit, first-time homebuyers tax credit and the graduate retention program.

The province will again index personal income tax to the national rate of inflation to protect taxpayers from so-called bracket creep. The government says indexation helps preserve the real value of income that can be earned tax-free, particularly for people on fixed incomes.

“We recognize that rising costs are challenging, and we remain committed to providing affordability relief for residents,” Reiter said. “Annual indexation, combined with the income tax measures in this year’s budget, help to keep Saskatchewan among the most affordable places to live in Canada.”

The indexation rate for 2026 will be 2.0 per cent, a move the province estimates will result in $42 million in tax savings that would otherwise be lost to inflation.