Income Test for Long-Term Care in Saskatchewan

How the Province Calculates Your Parent's Monthly Charge

Saskatchewan uses a strict, formula-driven approach to determine how much a resident pays in a publicly subsidized Special-Care Home. The calculation is based entirely on income. Assets — the family home, savings accounts, farmland, investments — are completely excluded.

The Ministry of Health pulls one number: Line 15000 of your parent's CRA income tax return from the previous calendar year. That figure, divided by 12, becomes their monthly income for the formula.

The Formula (January 2025 Rates)

The province sets three parameters that are adjusted quarterly (January 1, April 1, July 1, October 1) in line with federal pension changes:

• Minimum monthly resident charge: $1,377
• Maximum monthly resident charge: $3,428
• Lower income threshold: $1,864/month
• Upper income threshold: $5,432/month
• Taper rate: 57.5%

The formula works as follows: if your parent's monthly income is $1,864 or less, they pay $1,377. If it is $5,432 or above, they pay $3,428. Between those thresholds, the charge equals $1,377 plus 57.5% of the income above $1,864.

Worked Example: Single Parent Earning $36,000/Year

Your parent's Line 15000 shows $36,000 in annual income. Divide by 12 to get $3,000 monthly income.

• Income above lower threshold: $3,000 − $1,864 = $1,136
• 57.5% of that excess: $1,136 × 0.575 = $653.20
• Monthly resident charge: $1,377 + $653.20 = $2,030.20

That parent keeps the remaining $969.80 of their monthly income for personal expenses, drug co-pays, and discretionary spending.

Worked Example: Married Couple (Default Split)

When both spouses live in the community and one enters a Special-Care Home, the Ministry's default approach combines their incomes and splits the total 50/50.

If one parent has $30,000 in annual income and the other has $18,000, the combined total is $48,000. Each spouse is assessed on $24,000 ÷ 12 = $2,000/month.

• Income above lower threshold: $2,000 − $1,864 = $136
• 57.5% of that excess: $136 × 0.575 = $78.20
• Monthly resident charge: $1,377 + $78.20 = $1,455.20

The Spousal Trap — And How to Avoid It

The default 50/50 split sounds fair on paper. In practice, it can devastate the spouse who remains at home. If the institutionalized spouse has a much higher income — say a full federal pension plus a workplace pension — the 50/50 split artificially raises the community spouse's assessed income, which can trigger clawbacks on their GIS and increase the resident charge at the same time.

The protection is the Optional Designation form (HE593). Once filed, the Ministry calculates the resident charge using only the institutionalized spouse's individual income. The community spouse's income is excluded entirely. Compare the resulting resident charge and household cash flow before filing; the designation protects the community spouse's income but does not guarantee a lower resident charge.

What Counts as Income on Line 15000

Line 15000 captures total income before deductions, including:

• Canada Pension Plan (CPP/QPP) payments
• Old Age Security and Guaranteed Income Supplement
• Workplace pension or superannuation income
• RRIF withdrawals
• Rental income from property
• Interest, dividends, and investment income
• Employment or self-employment income

It does not capture: the value of the family home, bank account balances, or the principal value of other personal assets. Income generated by those assets, such as interest or dividends, can be included.

This distinction matters. A parent who sells their home and puts $400,000 in a savings account earning 4% interest would add $16,000 per year to Line 15000 — pushing their monthly resident charge up by up to roughly $767 before any maximum-rate cap applies. Using the same proceeds for a non-income-generating asset or expense leaves the principal outside the long-term-care financial assessment; taxable interest or dividends would still be reported.

What Happens If You Don't File the Forms

If the CRA consent forms are not submitted when your parent is admitted, or if updated income documentation is not provided by the September annual deadline, the Ministry automatically assesses the maximum rate: $3,428 per month.

That default billing continues until the paperwork catches up. And because the income assessment looks backward at the prior year's tax return, corrections are not instant — the Ministry must process the data and issue a formal rate letter. Families who miss deadlines may be billed at the maximum rate until the paperwork is processed and the rate is adjusted.

The Saskatchewan Long-Term Care Costs & Subsidies Guide includes pre-filled checklists for every form in the financial assessment process, with exact deadlines, contact numbers, and the formula applied to your parent's specific income range.

See more Saskatchewan guides →