Summary

Bill 51 increases the tax rate on large financial institutions from 4.0% to 6.0% starting April 1, 2026, eliminates the tax on small financial institutions (those with aggregate taxable paid-up capital of $1.5 billion or less), and phases out the tax on Crown corporations over two years (0.3% in 2026-2027, 0.0% starting April 1, 2027).

Saskatchewan taxes corporations based on their paid-up capital (roughly, their net worth). This bill makes three main changes effective April 1, 2026. First, it raises the rate on large financial institutions (banks, credit unions, insurance companies with aggregate capital over $1.5 billion) from 4.0% to 6.0%. Second, it eliminates the tax entirely for small financial institutions (those with aggregate capital of $1.5 billion or less, which currently pay 0.7%). Third, it phases out the tax on Crown corporations: the rate drops from 0.6% to 0.3% on April 1, 2026, then to 0.0% on April 1, 2027. The bill also removes several outdated provisions dating to the 1980s and early 2000s, such as deductions for goodwill and qualified depreciable property that are no longer relevant. Resource corporations and general corporations remain subject to existing rates (0.0% for general corporate capital tax, 3.0% resource surcharge for resource corporations). The changes mean Saskatchewan will rely more heavily on large financial institutions for this tax revenue while removing the burden from smaller financial institutions and Crown corporations.