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November 16, 2009 note: The tax changes below were subject to
budget balancing provisions. The 2010 tax brackets and personal
income tax rates remain unchanged from 2009.
basic personal amount increased by $200 to
$8,034 for 2008
spouse and equivalent to spouse amounts
increased to $8,034 for 2008
effective 2008, the middle tax bracket
rate is reduced from 13% to 12.75%
top threshold is increased from $65,000 to
$66,000, and will increase by $1,000 per year
until it reaches $70,000 in 2011
effective 2009, the lowest tax bracket
rate is reduced from 10.9% to 10.8%, then to
10.7% in 2010 (not done), and 10.5% in 2011
top threshold is increased from $30,544 to
$31,000, then to $32,000 in 2010 (not done), and $35,000
effective 2008, the Family
Tax Reduction becomes the Family Tax Benefit,
with a streamlined calculation, which does not
reduce benefits for anyone.
Manitoba mineral exploration tax credit extended
to March 31, 2008. This is a 10%
non-refundable personal tax credit, earned on the
purchase of flow-through shares in exploration
companies to finance Manitoba exploration
farmland school tax rebate increased from 60% to
65% for 2007, then to 70%, 75%, and 80% for 2008,
2009, and 2010.
new Green Energy Manufacturing Tax Credit is a
refundable tax credit of 10% of the value of
qualifying property produced in Manitoba and sold
for residential or commercial use in Manitoba
before 2019. Qualifying property will
include equipment for wind power, solar energy,
geothermal energy, and hydrogen fuel cells.
general corporate income tax rate reduced from
14% to 13% effective July 1, 2008, then to 12%
effective July 1, 2009.
small business corporate income tax rate is
reduced from 3% to 2% effective January 1, 2008,
and to 1% effective January 1, 2009. The
rate was 4.5% in 2006. The small business dividend
tax credit rate will be reduced
general corporation capital tax to be
eliminated, except for crown corporations, by
December 31, 2010, subject to budget balancing
all tax reductions in years after 2008 are
subject to budget balancing requirements.
Federal income tax measures affecting taxable
income that automatically affect provincial
taxable income in all provinces and territories
effective January 1, 2007, eligible pension
income can be split between spouses. See
the article on pension