Overview: 2025 Federal Income Tax Rates for Individuals
The Canadian government sets federal income tax rates for citizens. Additionally, every province and territory determines its own tax rates in addition to set federal income tax rates.
All taxable income is subjected to federal income tax rates. The taxable income is calculated after several applicable deductions, exemptions, and credits have been applied. As of 2025, the Canadian income tax rates are as follows:
- 15% for taxable income amounting to $57,375 or less
- 20.5% on the portion of income above $57,375 to $114,750
- 26% on the portion of income above $114,750 to $177,882
- 29% on the portion of income above $177,882 to $253,414
- 33% on the portion of income above $253,414
Provincial and Territorial Income Tax Rate for Individuals in Saskatchewan
As mentioned, different Canadian provinces and territories have their own rate of income tax in addition to the federal tax rates. In 2025, the Saskatchewan income tax rates are as follows based on income threshold:
The Three Tax Brackets in Saskatchewan 2025
- 10.5% for taxable income equal to or less than $53,463
- 12.5% for portion of income above $53,463 to $152,750
- 14.5% for portion of income above $152,750
Federal Deductions, Exemptions and Credits
There are many deductions, exemptions and credits that can be applied to join a favourable tax bracket with a lower federal tax rate. These deductions, personal tax credits, and exemptions include, but aren’t limited to:
- Refundable medical expenses
- Old age security repayment
- Certain board/lodging allowances (applicable to athletes in sports teams or persons who are members of recreational programs)
- Tradesperson’s tools credit (applicable to the cost of eligible tools)
- Canada training credit (CTC) is applicable for Canadians who want to take eligible training courses and improve their skills/job prospects
- Goods & Services tax (GST)/harmonized sales tax (HST) credit (a consumption tax credit that helps families with low income to offset the tax they pay on goods/services)
- Canada child benefit (to assist with the cost of raising children below 18 years)
- Child disability benefit (to assist families caring for a child with mental and physical impairment)
You could also get reprieve through inflation adjustments on taxable income effectively lowering your tax rate.
Main Provincial Tax Credits & Deductions Unique to Saskatchewan
What’s more, while Saskatchewan’s tax system is similar to those of other provinces and many provincial income tax credits complement similar credits offered at the federal government level, there are unique credits that can lower your tax rate and overall tax obligation further. They include:
- SLITC (Saskatchewan low income tax credit) for Saskatchewan residents with low/modest incomes)
- Saskatchewan volunteer tax credit for persons who do 200 or more hours of certified/eligible volunteer work
- Saskatchewan first-time home buyer tax credit (up to $1,050 for qualifying homes after 31st December 2011).
- Saskatchewan home renovation tax credit for eligible home renovation expenses i.e., labour, professional services, building materials, etc.
- Saskatchewan graduate retention program credit to cater for up to $20,000 in tuition fees for graduates living in Saskatchewan.
Calculating Tax Rate in Saskatchewan After Credits and Deductions
There are many other applicable tax credits and deductions to you on a federal level and in Saskatchewan like charitable donations. If you are not an expert on tax matters, you may be losing out on applicable deductions.
While you can use an income tax calculator, we suggest you seek expert help from renowned Saskatoon accountants at Murray, Sen and Associates who can help you identify and claim all applicable tax credits.
Tax experts will help you with everything from discovering the basic personal amount (BPA) applicable on a federal and provincial level to your tax bracket after deductions and filing the applicable form/s. Uncover new savings by seeking expert tax planning services in Saskatchewan.
Tax Rate for Businesses in Saskatchewan
Like individuals, corporations are also subject to both federal and provincial/territorial taxes. The federal tax rate is 38% of the yearly income. However, deductions and credits such as federal tax abatement and general tax deductions can reduce the basic federal tax rate.
It is possible for businesses to pay a tax rate as low as 9%. Federal tax rates aside, Saskatchewan has a provincial tax rate for businesses i.e., a higher rate and a lower rate. The lower rate is 1% for a small business limit of $600,000, while the higher rate is 12% and applies to all income that isn’t eligible for the lower tax rate.
Like individuals, corporations must report their taxes by filling out a special form. Taxable income is also calculated after allowable deductions. Even for small business owners, it is usually a challenge to calculate effective/final tax rates after deductions.
To avoid corporate tax rate errors and reporting delays, we recommend you hire trusted Saskatchewan accountants like Murray, Sen & Associates.
Find out more on the corporate tax rate in Saskatchewan including provincial sales tax and foreign tax credits for corporations with foreign income, Saskatchewan mineral exploration tax credit for companies in the mining sector, tax on commission sales, carbon tax rebate, and more.
Final Thoughts
The tax rate in Saskatchewan will vary based on factors like the underlying taxpayer, meaning an individual or a business. For individuals, tax rates vary based on the applicable personal income tax bracket (determined by a person’s taxable income after applicable deductions, exemptions, or credits). Saskatchewan also has an applicable tax rate over and above the federal rate.
While you can attempt to calculate your own tax rate (as an individual or business), we suggest you seek expert help to ensure you take advantage of all deductions, exemptions, and credits possible.
Expert tax planners will help you get the lowest possible final effective tax rates and safeguard against errors and delays. You’ll understand exactly how to treat personal income/salary income, rental income, business income, file personal/corporate income tax, declare capital gains income/dividend income, and more. Most importantly, you’ll find the best way to utilize your increased income after tax.