A family of four in Saskatchewan will pay no provincial income tax on their first $65,000 of income in 2026, the highest tax-free threshold in Canada, the provincial government announced on Dec. 30, 2025.
Read more: Local Muslim group donates food to friendship centre
The milestone comes as the province implements the second step of its four-year income tax reduction plan and continues to index tax brackets to inflation.
Deputy Premier and Finance Minister Jim Reiter said the government is committed to keeping Saskatchewan affordable. “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 aimed at easing costs for residents will also increase, including 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.
To protect taxpayers from automatic increases caused by inflation, personal income tax will again be indexed to the national inflation rate, preserving the real value of the amount residents can earn tax-free. Reiter said the measure particularly benefits those on fixed incomes.
“Rising costs are challenging, and we remain committed to providing affordability relief for residents,” he 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 level of indexation in 2026 is set at 2.0 per cent, which is expected to provide $42 million in tax savings for residents that would otherwise have been lost to inflation.
Read more: Bonnyville mourns loss of local leader
