This calculator helps you estimate the capital gains tax in Saskatchewan for the 2025 tax year. It also compares the current 50% inclusion rate with the proposed 66.7% rate on gains exceeding $250,000 for individuals, which is set to take effect January 1, 2026.
What is capital gains tax?
Capital gains tax applies when you sell an investment or asset for more than you paid for it. The difference between the sale price and the adjusted cost base (ACB) is the capital gain. In Canada, only a portion of the gain — determined by the inclusion rate — is added to your taxable income. Common scenarios that trigger capital gains include:
- Selling stocks, ETFs, or mutual funds outside a TFSA or RRSP
- Selling a rental property, farmland, or vacation property in Saskatchewan
- Disposing of shares in a private corporation
- Selling cryptocurrency at a profit
Only realized capital gains (where the asset is actually sold) are taxed. Unrealized gains — where the asset has increased in value but has not been sold — are not taxed until disposition.
What is a capital loss?
A capital loss occurs when you sell an asset for less than its adjusted cost base. Capital losses in Canada can be used to:
- Offset capital gains in the same tax year
- Carry back to the three prior tax years
- Carry forward indefinitely to offset future gains
This makes loss harvesting a valuable tax planning strategy, particularly for Saskatchewan residents with investment portfolios or multiple property holdings.
Capital gains tax rates in Saskatchewan
When a taxable capital gain is added to your income, it is taxed at your combined federal and Saskatchewan marginal rate. Saskatchewan has relatively low provincial tax rates compared to many provinces:
| 2025 Taxable Income | Combined Marginal Tax Rate |
|---|---|
| First $53,463 | 25.50% |
| Over $53,463 up to $57,375 | 27.50% |
| Over $57,375 up to $114,750 | 33.00% |
| Over $114,750 up to $152,750 | 38.50% |
| Over $152,750 up to $177,882 | 40.50% |
| Over $177,882 up to $253,414 | 43.50% |
| Over $253,414 | 47.50% |
Saskatchewan’s top combined marginal rate of 47.50% is one of the lowest in Canada, which makes the effective capital gains tax rate more favourable for Saskatchewan residents. See the full Saskatchewan tax brackets for details.
New capital gains tax rules in Canada
Changes introduced in the 2024 federal budget
- The inclusion rate increases from 50% to 66.7% on capital gains above $250,000 for individuals
- Below $250,000, the inclusion rate stays at 50% for individuals
- For corporations and trusts, the inclusion rate increases to 66.7% on all capital gains
Deferred to January 1, 2026
These changes were originally scheduled for June 25, 2024 but have been deferred to January 1, 2026. For the entire 2025 tax year, the inclusion rate remains at 50% on all capital gains for individuals.
Inclusion rate comparison
| Category | Up to $250,000 | Over $250,000 |
|---|---|---|
| Individuals (2025) | 50% | 50% |
| Individuals (2026+) | 50% | 66.7% |
| Corporations & trusts (2026+) | 66.7% | 66.7% |
This deferral provides Saskatchewan residents additional time to plan large dispositions of property or investments.
Saskatchewan capital gains tax on property
Capital gains tax in Saskatchewan applies to the sale of property that is not your principal residence:
- Farmland — Saskatchewan has a significant agricultural sector and the sale of farmland can trigger substantial capital gains. However, the Lifetime Capital Gains Exemption (LCGE) of $1,250,000 may apply to qualified farm property.
- Rental properties — The full gain is taxable at your marginal rate
- Vacation properties — Gains apply even when the property was used personally
- Undeveloped land — Investment land sales are fully subject to capital gains
Provincial land transfer tax
Saskatchewan charges a land transfer tax on property purchases. If you are selling one property and buying another, use the Saskatchewan land transfer tax calculator to understand the costs of your new purchase.
Principal residence exemption
Your primary home in Saskatchewan is exempt from capital gains tax under the principal residence exemption. You must designate it as your principal residence for each year you claim the exemption.
Lifetime capital gains exemption
The LCGE is particularly relevant in Saskatchewan due to the province’s strong agricultural sector. For 2025, the exemption is $1,250,000 for qualified farm property, qualified fishing property, and qualified small business corporation shares. This means the first $1,250,000 of capital gains on these qualifying assets is tax-free.
How to calculate capital gains tax in Saskatchewan
Step 1: Calculate the capital gain = Sale price - Adjusted cost base (ACB) - Selling expenses
Step 2: Apply the inclusion rate (50% for 2025)
Step 3: Add the taxable capital gain to your other income
Step 4: Apply your combined Saskatchewan and federal marginal rate
Example
You sell a rental property in Saskatoon for $450,000. Your ACB was $300,000 and expenses were $20,000.
- Capital gain = $450,000 - $300,000 - $20,000 = $130,000
- Taxable gain at 50% = $65,000
- This $65,000 is added to your other income and taxed at your marginal rate
If your other income is $80,000, the $65,000 taxable gain would push your total to $145,000, with the gain portion taxed at approximately 38.50% (the combined rate for that bracket).
Tax-efficient strategies for Saskatchewan residents
- Use your TFSA: All investment gains inside a TFSA are completely tax-free
- Maximize RRSP room: Defer tax on investment income until retirement when your rate may be lower
- Claim the LCGE: If selling a farm or small business, ensure you qualify for the $1,250,000 lifetime exemption
- Harvest losses: Sell losing investments to offset current and future gains
- Time dispositions: With the 66.7% inclusion rate taking effect in 2026, consider whether to realize large gains before year-end 2025
How Saskatchewan compares to other provinces
Saskatchewan’s top combined marginal rate of 47.50% is among the lowest in Canada. This means the effective capital gains tax rate is also lower:
| Province | Top Marginal Rate | Effective CG Rate (50%) |
|---|---|---|
| Saskatchewan | 47.50% | 23.75% |
| Alberta | 48.00% | 24.00% |
| Ontario | 53.53% | 26.77% |
| BC | 53.50% | 26.75% |
| Nova Scotia | 54.00% | 27.00% |
Saskatchewan residents realizing capital gains benefit from this lower rate, making it one of the more tax-efficient provinces for investment and property dispositions.
Frequently asked questions
How is capital gains tax calculated in Saskatchewan?
A portion of the gain (the inclusion rate) is added to your taxable income. In 2025, the inclusion rate is 50%. The included amount is taxed at your combined Saskatchewan and federal marginal rate.
What is the capital gains inclusion rate in 2025?
50% for all capital gains for individuals in 2025. The proposed 66.7% rate on gains above $250,000 is deferred to 2026.
Do I pay capital gains on my home in Saskatchewan?
No. The principal residence exemption eliminates capital gains tax on your primary home.
What is the lifetime capital gains exemption?
The LCGE for 2025 is $1,250,000 and applies to qualified farm property, fishing property, and small business corporation shares — particularly relevant in Saskatchewan’s agricultural economy.
What is the effective capital gains tax rate in Saskatchewan?
At the top marginal rate of 47.50% with a 50% inclusion rate, the effective capital gains tax rate is 23.75% — one of the lowest in Canada.
Related guides
- Saskatchewan tax brackets
- Saskatchewan land transfer tax calculator
- Canada capital gains tax calculator
- Saskatchewan sales tax calculator
- TFSA contribution limit
- RRSP contribution limit
