Income Tax Cut Plus Indexation Gives Family of Four in Saskatchewan the Highest Tax Free Income in Canada in 2026

CANADA, December 31 - Released on December 30, 2025

The second step of the provincial government's four-year income tax reduction plan coupled with indexation means a family of four in Saskatchewan will pay no provincial income tax on their first $65,000 of income in 2026. That's the highest tax-free income tax threshold in Canada.

"We want to ensure Saskatchewan remains the most affordable place to live in Canada," Deputy Premier and Minister of Finance Jim 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."

Tax credits aimed at helping with affordability are also increasing, including the Low Income Tax Credit, the Disability Tax Credit and supplement, the 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, the Government of Saskatchewan is once again indexing personal income tax to the national rate of inflation. This preserves the real value of the amount all taxpayers can earn without paying tax, particularly benefiting those 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 level of indexation in 2026 will be 2.0 per cent, which will provide Saskatchewan residents $42 million in tax savings in the coming year that would have occurred as a result of inflation.

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For more information, contact:

Media
Finance
Regina
Phone: 306-531-6492
Email: financecommunicationsfi@gov.sk.ca