The Saskatchewan government will balance out a jump in assessed values with reduced mill rates for education property tax in 2025-26. The newly released provincial budget provides the discount to all property classes, thus trimming the commercial/industrial mill rate from 6.86 to 6.37.
“This will save property owners more than $100 million annually, compared to leaving the mill rates unchanged,” said Saskatchewan’s Finance Minister, Jim Reiter, in his budget address.
The move responds to the most recent reassessment in Saskatchewan’s four-year cycle. The provincial government expects to collect roughly the same amount of funds — projected at $816 million for 2025-26 — to support the school system as during the 2024-25 fiscal year, but with some revenue growth attributable to newly constructed properties. The tax ratio among the commercial/industrial, residential, agricultural and resources classes will also be held steady.
Other new tax measures of interest to the property sector include an increase to the provincial tax credit for first-time homebuyers and reinstatement of the expired temporary tax credit for home renovations. First-time buyers will now be eligible for a non-refundable provincial tax credit of $1,575, or on $15,000 of the purchase cost — an increase from $1,050 or $10,000 of the purchase cost. The budget document reiterates that the credit can be combined with the similar federal benefit, providing eligible claimants with a $3,075 total deduction from taxable income.
Home renovators can claim a non-refundable tax credit on up to $4,000 worth of eligible project costs annually, translating into a maximum annual benefit of $420. Seniors can claim the credit on up to $5,000 worth of eligible renovations, to a maximum of $525 per year. That will be retroactive to work occurring since Oct. 1, 2024.
Meanwhile, electric vehicle (EV) drivers will have to double their contribution to the provincial road maintenance budget as of June 1, 2025. Saskatchewan was the first Canadian province (later followed by Alberta) to introduce an annual fee for EV drivers, who do not support road upkeep through the fuel tax. The budget document describes the looming increase from $150 to $300 as a measure “to better reflect the costs of road maintenance and ensure owners of EVs pay a more comparable amount to owners of traditional vehicles.”
The budget’s breakdown of provincial revenue sources does not contain a line item for the fee.
