The Saskatchewan government says it’s moving forward with the second year of a multi-year plan to lower personal income taxes, a move it claims will create the highest tax-free threshold in the country.
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According to the 2026-27 provincial budget released April 2, several key tax credits will see a $500 increase. The changes apply to the basic personal exemption, spousal, dependent child and seniors’ supplementary tax credits.
Finance minister Jim Reiter said the measures are designed to help residents keep more of their earnings as the cost of living remains a top concern.
“Our government is focused on making life more affordable for Saskatchewan people,” Reiter said in a news release. “By continuing to permanently lower income taxes, we are protecting individuals and families.”
The government stated that under the new provincial tax brackets, a family of four will pay no provincial income tax on their first $65,000 of income. A family of four with a total income of $100,000 is expected to pay about $4,500 less in provincial tax than they would have in 2007.
The province is also increasing the Saskatchewan Low-Income Tax Credit by five per cent, a move expected to affect approximately 300,000 households through quarterly payments.
The tax changes are part of the Saskatchewan Affordability Act, which the government says will provide roughly $200 million in savings this year when combined with annual inflation indexation.
The budget also includes a boost for volunteer emergency workers, doubling the Volunteer First Responders’ Tax Credit from $3,000 to $6,000. The credit is available to volunteer firefighters and other rescue personnel.
Officials said the tax relief is a permanent fixture of their four-year plan to reduce the personal tax burden while maintaining public services.
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