Renters
Affordability Tax Credit: will be increased from $625 in 2026 to a maximum
of $675 in 2027, with the maximum seniors top-up increased from $357.14 to
$385.71.
Both amounts will be increased annually.
Freezing indexation of the Basic Personal Amount (BPA) and tax
thresholds: the 2025 BPA and thresholds will be unchanged from 2024. The phase-out of the BPA over a net income range of $200,000 to
$400,000 for 2025, as was planned in the 2024 Budget, is still in effect.
Homeowners Affordability Tax Credit: The maximum tax credit
increases from $1,500 in 2025 to $1,600 in 2026.
Health and Post Secondary Education Tax Levy: Starting January 1,
2026, businesses with payrolls at or under $2.5 million will be tax exempt.
The threshold for a reduced rate will be increased from $4.5 million to $5
million.
Volunteer Firefighter and Search and Rescue Amount is doubled from
$3,000 to $6,000 for the 2025 tax year.
Retail Sales Tax: Effective January 1, 2026, retail sales tax will
apply on cloud computing services, such as subscriptions to software, data
storage, and remote computer processing.
rates unchanged for 2024, but instead of mailing cheques, the rebate
will be provided directly on the property tax notice.
For 2025, the School Tax Rebate & Education Property Tax Credit
will be replaced with a new Homeowners Affordability tax Credit of up to
$1,500 on principal residences.
Education Property Tax Credit seniors' top-up and School Tax Credit
are being eliminated while the Seniors School Tax Rebate is maintained.
School Tax Rebate for farmers maintained at 50%, for all other
commercial properties is removed in anticipation of the introduction of
a new education funding model.
Basic Personal Amount (BPA): beginning with the 2025 tax year,
Manitoba will phase out the BPA over a net income range of $200,000 to
$400,000. The BPA will be zero for individuals earning a net income of
$400,000 and above. These amounts will not be indexed.
Renters Tax Credit: 2025 will be increased from $525 to a maximum
of $575, with the seniors top-up increased from $300 to a maximum of $328.
Both amounts will be increased annually.
Fertility Treatment Tax Credit: Maximum annual eligible expense
doubled for 2024, from $20,000 to $40,000. The tax credit rate is 40%, so
the maximum tax credit increases from $8,000 to $16,000.
Retail Sales Tax:
Effective January 1, 2024, increase in the sales tax registration
threshold for taxable sales, from $10,000 to $30,000.
Sales tax commissions will be eliminated for any filing period ending
after April 2024.
Rental Housing Construction Tax Credit:
New credit to be introduced effective for 2024 tax year.
$8,500 for construction of new market-rate rental units.
$13,500 for units classified and maintained as affordable units for a
period of at least 10 years.
Construction must commence on or after January 1, 2024 to be eligible.
Fully refundable to non-profit organizations.
For other businesses, $8,500 full refundable on all units, with
additional $5,000 non-refundable credit available over 10 years for
affordable units.
Data Processing Investment Tax Credits: Eliminated for the 2025 tax
year.
Gas Tax Cut: rate of zero cents per litre on gasoline, diesel and
marked gasoline extended by 3 months to September 30, 2024, marked diesel
continues to be tax exempt.
Cultural Industries Printing Tax Credit: extended for 1 year to
December 31, 2025.
Personal income tax bracket thresholds
will increase in 2024 to $47,000 and $100,000, with a return to annual
indexing in 2025.
Continuing to phase out school taxes by increasing the rebate for
residential and farm properties from 37.5% to 50% in 2023.
Business Measures
Health and Post-Secondary Education Tax Levy exemption threshold raised
from $2 million to $2.25 million of annual remuneration effective January 1,
2024, and threshold for reduced rate is raised from $4 million to $4.5
million.
Interactive Digital Media Tax Credit: Effect April 1, 2023, expenditures
expanded.
Mineral Exploration Tax Credit is made permanent.
Green Energy Equipment Tax Credit is made permanent.
This of course depends on economic growth, and the above are not the best
case or worst case scenarios.
Personal Tax Measures
Education Property Tax Rebate
In 2021, rebate cheques of 25% of school division special levy and
community revitalization levy payable will be paid automatically (no
application needed) to owners of residential and farm properties
Existing education property tax offsets will be proportionately
reduced by 25% in 2021, including
Education Property Tax Credit and Advance;
Seniors School Tax Rebate;
Seniors Education Property Tax Credit; and
Farmland School Tax Rebate
Owners of other properties will receive a 10% rebate.
Teaching Expense Tax Credit
Starting in 2021 tax year
Will apply to purchases of eligible teaching supplies made by
educators that are not reimbursed by their employer.
15% refundable credit for up to $1,000 in supplies ($150 maximum
refund)
Parallels the eligibility criteria of existing federal Eligible
Educator School Supply Tax Credit.
Retail Sales Tax (RST) Measures Effective Dec 1, 2021
Personal services (hair services, etc) will be exempted from RST
Streaming services will be subject to RST.
Online Marketplaces will be required to collect and remit RST on the sale
of taxable goods sold by third parties on their electronic platforms.
Online accommodation platforms will be required to collect and remit RST
on the booking of taxable accommodations.
Business Tax Measures
Health and Post-Secondary Education Tax Levy
Exemption threshold increased from $1.5 million to $1.75 million
effective Jan 1, 2022.
Threshold below which employers pay a reduced rate is raised from $3
million to $3.5 million.
Measures effective for the 2021 taxation year:
Interactive Digital Media Tax Credit eligible activities expanded.
Small Business Venture Capital Tax Credit:
Maximum eligible investment increases from $450,000 to $500,000.
Maximum tax credit claimable increases from $67,500 to $120,000.
Film and Video Production Tax Credit
Frequent filming bonus temporarily paused for 2 years re COVID-19
pandemic.
Companies that were eligible for the bonus on Mar 31, 2020 will have
that status remain in effect until Mar 31, 2022, at which their frequent
filming status resumes.
Vehicle Registration Fee Reduction
10% reduction starting with renewals after Jun 30, 2021.
Taxation
Changes - 2020 Budget indicates that the previously announced (below)
retail sales tax rate reduction, introduction of a green levy and the tobacco
tax rate increase that were effective July 1, 2020 have all been deferred
until further notice.
Creation
of the Seniors
Economic Recovery Tax Credit (COVID-19): $200 refundable tax
credit was claimed on 2020 tax returns if the eligible senior did not
receive a $200 advance payment for this (sent May and June). This can
be entered in the Detailed
Canadian Tax and RRSP Savings Calculator, in the input field for
refundable tax credits, just before the Income tax payable (refundable if
negative) line.
Retail sales tax
(RST) rate reduced from 7% to 6% effective
July 1, 2020 - deferred until further notice.
Preparation of personal income tax returns will be exempt
from RST effective Oct 1, 2020.
Probate
fees will be eliminated as of July 1, 2020 (as announced in December 2019)
Green Levy: Effective July 1, 2020, Manitoba will introduce
a green levy of $25 per ton. RST will not be levied on the green
levy. It's expected that the RST reduction will more than offset the green
levy. - deferred until further notice.
Tobacco Tax will increase effective July 1, 2020 - deferred until
further notice.