As of this week, insurance premiums in Saskatchewan will have the provincial sales tax applied, a measure introduced in the March provincial budget.

Originally set for July 1, the effective date for applying the premiums was bumped back to Aug. 1. 

The PST now applies to self-insured group arrangements (ASOs) and individual permanent life insurance policies that take effect after the deadline. 

Permanent individual life insurance policies that took effect before Aug. 1 will be exempt. Any endorsements — changes to life insurance policies — added to the life insurance premiums before Aug. 1 will also be exempt. 

Prior to Aug. 1, Saskatchewan did not charge PST on insurance premiums. 

The PST rate of six per cent will apply to all insurance premiums in the province, except for:

  • Reinsurance contracts.
  • Annuity insurance contracts.
  • Property insurance for property located outside Saskatchewan.
  • Liability insurance covering risks located outside of Saskatchewan.
  • Insurance with respect to the life, health or well-being of an individual who is not ordinarily a resident in Saskatchewan.
  • Insurance contracts purchased by employers covering employees who are not ordinarily a resident in Saskatchewan.
  • Contributions or premiums paid under the Canada Pension Plan, Employment Insurance Act (Canada) and The Workers Compensation Act, 2013.
  • Insurance contracts purchased by federal government departments and agencies.


  • A previous version of this story incorrectly stated a list of insurance premiums that the PST rate would apply to. In fact, the PST rate does not apply to the items on the list.
    Dec 13, 2017 9:37 AM CT


  • Individual permanent life insurance policies which took effect before Aug. 1 are exempt from the tax but group policies are not.
    Aug 01, 2017 12:38 PM CT
With files from Brandon Harder