Summary

The Income Tax Amendment Act, 2026 increases the basic personal amount for the 2026 taxation year to $20,381, adds $500 annual increases for 2027 and 2028, and doubles volunteer first responder tax credits from $3,000 to $6,000. It also makes technical adjustments to ensure tax credit amounts are indexed for inflation and clarifies administration of the Saskatchewan Chemical Fertilizer Incentive Tax Credit.

This bill adjusts several Saskatchewan income tax credits. The basic personal amount, which reduces tax for all residents, becomes $20,381 for 2026 and increases by $500 in each of 2027 and 2028. The spousal credit, equivalent-to-spouse credit, dependent child credit, and senior supplementary credit follow similar patterns. The bill doubles the maximum annual credit for volunteer firefighters, medical first responders, and search-and-rescue volunteers from $3,000 to $6,000, meaning volunteers who complete 200 hours of eligible service per year will see their maximum annual benefit rise from $315 to $630. For the chemical fertilizer production incentive, corporations now have until December 31, 2031 to meet the $10 million minimum capital investment, and the Minister of Finance can offset any amounts the corporation owes against rebate payments. The bill also clarifies how these credits are indexed to inflation in future years and updates technical formulas for the Canada Revenue Agency to administer the credits.