Government of Saskatchewan
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      Friday, February 23, 2018

General Description

Saskatchewan levies provincial corporate income tax under the terms of a tax collection agreement with the federal government (as do other provinces and territories with the exception of Quebec and Alberta). Under the tax collection agreement, the federal government administers the provincial income tax system using the same determination of a corporation's taxable income for both federal and provincial tax purposes.

Saskatchewan's corporate income tax is levied as a percentage of the share of a corporation's taxable income that is allocated to the province.  The Saskatchewan general tax rate on corporate taxable income decline from 12% to 11.5% effective July 1, 2017 and increase from 11.5% back to 12% effective January 1, 2018.  The tax rate changes are pro-rated for corporate taxation years that straddle the effective dates.

Saskatchewan small businesses, defined as Canadian-controlled private corporations, pay a reduced rate (commonly known as the small business rate) of 2% on the first $500,000 of eligible business income earned up until December 31, 2017.  The small business threshold increased from $500,000 to $600,000. effective January 1, 2018 and is pro-rated for corporate taxation years that straddle this effective date.

In addition to the tax reduction for small businesses, Saskatchewan provides corporations involved in manufacturing and processing (M&P) a reduction of up to 2 percentage points on M&P profits, depending on the extent of the company's presence in the province.
In addition to these tax reduction measures, Saskatchewan also offers tax credits to encourage corporations to make investments in M&P capital assets and research and development activities.

Saskatchewan's Corporate Income Tax Rates


 Up to July 1, 2017

July 1, 2017 to December 31, 2017

As of January 1, 2018 





M&P Profits*




Small Business




SB Threshold




*The M&P profits tax reduction is calculated by applying the qualifying reduction rate against eligible M&P income. The qualifying reduction rate is determined by multiplying a corporation's Saskatchewan allocation percentage by the maximum reduction allowance. Eligible Saskatchewan M&P income is determined as the Saskatchewan share of a corporation's national M&P income.


The Saskatchewan corporate income tax system is administered on the Province’s behalf by the Canada Revenue Agency in conjunction with the administration of the federal income tax system. Provincial corporate income tax forms are produced and distributed by the Agency.

For further information about Saskatchewan corporate income tax, please contact:

Canada Revenue Agency


Saskatchewan Finance
Taxation and Intergovernmental Affairs Branch
Regina area: 787-6722
Toll free: 1-866-862-6246 (Option 2)

Related Links

Saskatchewan-based manufacturing and processing firms are eligible for a reduced corporate income tax rate.

Information on the refundable income tax credit designed to encourage plant and equipment investment in Saskatchewan.

The 2015 Budget introduced a non-refundable tax credit targeted to the creation of new jobs by manufacturers and processors in support of the goal to double Saskatchewan's exports by 2020.

The 2015 Budget introduced a tax rebate to encourage new investment in primary steel production.

The Research and Development (R&D) Credit encourages R&D activity in Saskatchewan.

Rental Housing Rebate or Corporate Income Tax Rebate on New Rental Housing (CITR program) is designed to encourage investment in new rental housing units. 

The Royalty Tax Rebate (RTR) helps to offset the provincial portion of income taxes that are payable as a result of the federal government's decision to disallow provincial royalties and similar taxes as deductions in determining taxable income.

Copies of the Income Tax Act, The Income Tax Act, 2000 and associated provincial regulations are available through the Queen's Printer of Saskatchewan. 

Copies of the federal Income Tax Act and associated federal regulations are available through the Government of Canada, Ministry of Justice. 

© 2018 Government of Saskatchewan. All rights reserved.