SASKATOON, SK: The Canadian Taxpayers Federation released its annual New Year’s Tax Changes report today to highlight major federal and provincial tax changes in 2025.

“It’s great to see Premier Scott Moe making life more affordable for Saskatchewanians in the new year,” said Gage Haubrich, CTF Prairie Director. “In 2025, Saskatchewan families and small businesses will be saving on their income tax bills and households will be shielded from the federal carbon tax on home heating.”

Income Tax: The Saskatchewan government is increasing the personal income tax exemption, the spousal exemption, the child exemption and the seniors supplement exemption by $500 per year for the next four years. This will save a family of four $2,100 over four years.

Small Business Tax: The small business tax rate will be held at one per cent. It was scheduled to increase from one to two per cent on July 1, 2025. This will save small businesses more than $50 million annually.

Carbon Tax: The Saskatchewan government is extending its carbon tax exemption on home heating. This will save the average Saskatchewan family approximately $480 in 2025.

The federal government is increasing taxes in 2025.

Payroll taxes: The federal government is raising the mandatory Canada Pension Plan and Employment Insurance contributions in 2025. These payroll tax increases will cost a worker up to an additional $403 next year.

Carbon tax: The federal carbon tax is increasing to about 21 cents per litre of gasoline, 25 cents per litre of diesel and 18 cents per cubic metre of natural gas on April 1. The carbon tax will cost the average Saskatchewan household $133 in 2025-26, even after the rebates, according to the Parliamentary Budget Officer.

Alcohol taxes: Federal alcohol taxes will increase by two per cent on April 1. This alcohol tax hike will cost taxpayers $40.9 million in 2025-26, according to Beer Canada.

Following Budget 2024, the federal government also increased capital gains taxes and imposed a digital services tax and an online streaming tax.

“The federal government is hiking taxes and taking more money out of Saskatchewan taxpayers’ pockets in the new year,” said Haubrich. “Instead of hiking taxes, Prime Minister Justin Trudeau needs to take a play out of the Saskatchewan government’s playbook and commit to serious tax relief.”

You can find the CTF’s New Year’s Tax Changes report HERE.