Saskatchewan: Increases in tax credits and affordability measures
Tax credits aimed at helping with affordability are also increasing including the Low Income Tax Credit, the Disability Tax Credit and supplement and more
WAKAW, SK, Jan. 5, 2026 – “We want to ensure Saskatchewan remains the most affordable place to live in Canada,” Deputy Premier and Minister of Finance Jim Reiter said in a press release on December 30th. “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.”
Under the Seniors’ Income Plan in 2025, a single OAS/GIS recipient is eligible to receive up to $360/month or $4,560/year. The announced $500 over four years will result in a monthly increase of roughly $60 a month in 2026. Doing the math, in 2030, eligible seniors could expect this promised increase to result in a monthly payment of roughly $550.
To protect taxpayers from automatic increases caused by inflation, the Government of Saskatchewan, Reiter also noted, 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. The level of indexation in 2026 will be 2.0 percent.
“We recognize that rising costs are challenging, and we remain committed to providing affordability relief for residents,” Reiter said.
The announcement on December 30 also shared that 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” earned in 2026. This statement fails, however, to clarify whether that is a family of four living on a single income or two and other factors which influence what can be considered as income, and those details are important.
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.
Carol Baldwin is a Local Journalism Initiative reporter with the Wakaw Recorder in Wakaw, Saskatchewan.
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