What is the Saskatchewan small business tax rate?

In Saskatchewan, small businesses pay a combined federal and provincial rate of 10% on the first $500,000 of active business income (9% federal + 1% SK provincial). Income from $500,000 to $600,000 is taxed at 16%, and income over $600,000 is taxed at the general rate of 27%.

Should I pay myself salary or dividends in Saskatchewan?

The salary vs dividend decision depends on your specific situation. Salary provides RRSP contribution room and is tax-deductible for the corporation. Dividends have lower personal tax rates but don't create RRSP room. SK TaxGPT can calculate which option gives you more after-tax income based on your numbers.

What are the corporate tax filing deadlines in Canada?

Corporate tax returns (T2) must be filed within 6 months of your fiscal year-end. Corporate taxes owed are due either 2 months or 3 months after year-end depending on whether you qualify for the small business deduction. The tool helps you calculate your specific deadlines based on your fiscal year.

How do I calculate home office deduction in Canada?

Home office deductions are calculated based on the percentage of your home used for business. You can deduct a proportional amount of utilities, insurance, property taxes, mortgage interest, and maintenance. SK TaxGPT calculates this automatically based on your office square footage and total home size.

What is the small business tax rate in Saskatchewan?

Saskatchewan has the lowest small business rate in Canada. The combined federal + provincial rate is just 10% (9% federal + 1% SK provincial) on the first $500,000 of active business income for CCPCs.

What are the Saskatchewan personal tax brackets for 2025?

Saskatchewan has three personal tax brackets: 10.5% on the first $52,057, 12.5% on income from $52,057 to $148,734, and 14.5% on income over $148,734. These are in addition to federal tax rates.

What is the SK extended business limit?

Saskatchewan extends the small business limit to $600,000, compared to the federal limit of $500,000. Income from $500,000 to $600,000 gets the 1% SK provincial rate but the 15% federal general rate, for a combined 16%.

Saskatchewan Tax Rates 2025

Personal income brackets, corporate rates & the lowest small business rate in Canada

Lowest in Canada!

Saskatchewan's 1% provincial small business rate is the lowest in the country, making it one of the best places to incorporate a small business.

Corporate Tax Rates (2025)

Income Level	Federal	SK Provincial	Combined
First $500,000Small Business Deduction	9%	1%	10%
$500K - $600KSK Extended Limit	15%	1%	16%
Over $600,000General Rate	15%	12%	27%

Small Business Deduction Requirements

To qualify for the 9% federal small business rate, your corporation must:

Be a CCPC

Canadian-Controlled Private Corporation - incorporated in Canada, not controlled by non-residents or public corporations, shares not listed on exchange.

Stay Under Taxable Capital Limits

Business limit reduced when taxable capital exceeds $10 million. Business limit is nil when taxable capital exceeds $15 million.

Watch Passive Investment Income

Business limit reduced when passive income exceeds $50,000. Business limit is nil when passive income exceeds $150,000.

Personal Income Tax Brackets (2025)

Saskatchewan Provincial Rates

Income Range	Provincial Rate
First $52,057	10.5%
$52,057 to $148,734	12.5%
Over $148,734	14.5%

Federal Tax Brackets (2025)

Income Range	Federal Rate
First $55,867	15%
$55,867 to $111,733	20.5%
$111,733 to $173,205	26%
$173,205 to $246,752	29%
Over $246,752	33%

Combined Top Marginal Rate

The combined top marginal rate in Saskatchewan is 47.5% (33% federal + 14.5% provincial) on income over $246,752.

Basic Personal Amounts (2025)

These are your tax-free income thresholds:

$15,705

Federal Basic Personal Amount

$17,661

SK Basic Personal Amount

Filing Requirements

File T2 Corporation Income Tax Return within 6 months of fiscal year-end

Pay taxes owing within 2 months (or 3 months for small CCPCs)

Saskatchewan taxes are filed jointly with the federal return (no separate SK return)

Example: $150,000 Corporate Profit

Corporate Profit

$150,000

Total Tax (10%)

$15,000

After-Tax Cash

$135,000

Breakdown:

Federal tax: $150,000 x 9% = $13,500
SK provincial tax: $150,000 x 1% = $1,500
Total: $15,000

Calculate Your Saskatchewan Taxes

Use our free SK TaxGPT calculator for instant corporate and personal tax estimates

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Related Tax Guides

Dividend Tax in CanadaGross-up and tax credits explained Capital Cost AllowanceDepreciate business assets Home Office ExpensesWork from home deductions Employee vs ContractorCRA classification tests

Sources

CRA Corporation Tax Rates - canada.ca
Saskatchewan Corporation Income Tax - saskatchewan.ca
CRA T2 Corporation Income Tax Guide

Disclaimer: This is general tax information, not professional advice. Tax rates and limits may change. Always verify current rates with CRA or a qualified accountant for your specific situation.