Manitoba Provincial Budget Tax Updates 2024-2025
Overview
On April 2, 2024, Manitoba’s government has announced changes to its provincial tax laws in its 2024-2025 budget “ONE FUTURE. ONE PEOPLE. ONE MANITOBA.”. This comprehensive summary highlights the key changes that will influence the Manitoban’s tax environment in the coming years.
Personal Income Tax Measures
There are no proposed changes to personal income tax rates for 2024.
The income tax rates for the 2024 taxation year, based on your taxable income, are as follows:
| Taxable income | Rate |
| $47,000 or less | 10.80% |
| More than $47,000 but not more than $100,000 | 12.75% |
| More than $100,000 | 17.40% |
The current personal combined income tax rates for top marginal tax rate in 2024 are outlined below:
| Taxable income above $246,752 | Rate |
| Interest/regular income | 50.40% |
| Capital gains | 25.20% |
| Eligible dividends | 37.78% |
| Non‑eligible dividends | 46.67% |
Basic Personal Amount (BPA)
Since 2017, the Basic Personal Amount (BPA) has been adjusted annually, reaching $15,780 for 2024 and an estimated $16,206 for 2025. The amount of the credit is the BPA multiplied by the lowest Manitoba tax bracket rate.
Manitoba intends to gradually eliminate the BPA for taxpayers earning net incomes between $200,000 and $400,000 starting in the 2025 tax year.
Renters Tax Credit
For the tax year 2025 and onwards, there will be an enhanced Renters Tax Credit, offering up to $575 (formerly $525), and the seniors’ top-up will be increased to a maximum of $328 (formerly $300). These amounts will also be increased annually throughout the current government’s mandate.
Fertility Treatment Tax Credit
The Fertility Treatment Tax Credit offers a refundable personal income tax credit of 40 percent of the fees incurred for fertility treatments paid to a licensed medical practitioner or fertility clinic in Manitoba, including related prescription drugs (minus any reimbursements received, such as those from private health care coverage). Manitobans eligible for this credit can claim an unlimited number of treatments, but there is a cap on the eligible annual costs that can be claimed, set at $20,000. Consequently, the maximum annual credit stands at $8,000.
For the tax year 2024, the maximum annual eligible expense amount for the Fertility Treatment Tax Credit has been raised from $20,000 to $40,000. Consequently, this doubles the available annual credit from $8,000 to $16,000.
Corporate Income Tax Measures
There are no proposed changes to corporate income tax rates or the $500,000 small-business limit for 2024.
The corporate income tax rates for Manitoba in 2024 are as follows:
| Provincial tax rate | Federal and provincial combined tax rate | |
| Small-business tax rate (on the first $500,000 of active business income) | 0.00 % | 9.00 % |
| Manufacturing and processing tax rate | 12.00 % | 27.00 % |
| General corporate tax rate | 12.00 % | 27.00 % |
Rental Housing Construction Tax Credit
The Budget introduces the Rental Housing Construction Tax Credit, providing $8,500 for the construction of new market-rate rental units and $13,500 for units classified as affordable, with a requirement to maintain this classification for a minimum of 10 years.
The credit is available for new constructions that commence on or after January 1, 2024.
Non-profit organizations will benefit from a fully refundable Rental Housing Construction Tax Credit. For other businesses, a full refund of $8,500 will apply to all units, along with an additional non-refundable credit of $5,000 spread over a 10-year period specifically for affordable units.
Cultural Industries Printing Tax Credit Extension
The Cultural Industries Printing Tax Credit, which offers a 35 per cent refundable credit on salary and wages paid to Manitoba employees by businesses in the printing industry was scheduled to expire on December 31, 2024. The tax credit is extended for one year to December 31, 2025.
Data Processing Investment Tax Credits
The Data Processing Investment Tax Credits will be eliminated for the 2025 tax year.
Sales Tax Measures
Sales Tax Registration Threshold
Starting January 1, 2024, the threshold for sales tax registration on taxable sales will rise from $10,000 to $30,000, aligning with the federal government’s GST/HST registration threshold.
Sales Tax Commissions
In Manitoba, businesses reporting less than $3,000 in sales tax during a filing period are allowed a commission for collecting and remitting the Retail Sales Tax, intended to assist with administrative expenses associated with filing paper-based sales tax returns. With the raised sales tax registration threshold and electronic filing, sales tax commissions will be eliminated for any filing period ending after April 2024.
Other Technical Clarifications Regarding the Retail Sales Tax
- Clarification is provided that interior window coverings retain their status as tangible goods and do not become fixtures of real property.
- Businesses selling electricity via electric vehicle chargers are exempted from collecting sales tax if the tax has already been paid on the electricity by the business.
- The limitation on sales tax refunds for vehicles purchased in Manitoba and resold out-of-province within six months is removed.
- The sales tax refund process for vehicle appraisals is refined for consistency, stipulating that the purchase price should be used when appraisal values are lower.
Other Tax Measures
Reform of Credits and Rebates Regarding School Tax
The Budget announces changes to the education funding model. For the 2025 property tax year, the School Tax Rebate and Education Property Tax Credit will be replaced by a Homeowners Affordability Tax Credit of up to $1,500, which will effectively eliminate education property taxes for homes valued at approximately $285,000 or less.
Regarding Seniors homeowners, the elimination of the Education Property Tax Credit seniors top-up and the School Tax Credit (while the Seniors School Tax Rebate is maintained) will result in the same or greater total credits for most seniors in 2025 compared to 2024.
The School Tax Rebate for farm properties remains at 50% but is removed for other commercial properties.
Gas Tax Cut Extension
The gas tax cut is extended by three months from June 30, 2024, to September 30, 2024. During this period, the gas tax rate remains at zero cents per liter for gasoline, diesel, and marked gasoline.
Vaping Tax
Following the federal government’s implementation of an excise duty on vaping products starting October 1, 2022, Manitoba is set to enter into a Coordinated Vaping Product Taxation Agreement with the federal government. Starting January 1, 2025, the CRA will initiate the collection of Manitoba tax on vaping products sold within the territory. The rates are established at:
- $1 per 2 mL, or fraction thereof, for the first 10 mL of vaping substance in the vaping device or immediate container;
- $1 per 10 mL, or fraction thereof, for amounts over the first 10 mL;
These taxes will be imposed alongside the existing federal rates, which are currently identical. Collection and administration of such tax will be handled at no cost by the federal government.
Rebate for Security Cameras
The Budget announces the introduction of a $300 rebates for any Manitobans who purchases security cameras for their home or business.
Electric Vehicle Incentive
The Budget introduces the EV Rebate for electric vehicles – specifically, battery electric vehicles (BEV), plug in hybrid vehicles (PHEV) and Fuel Cell Electric Vehicles (FCEV) – of up to $4,000 for new and $2,500 for pre-owned electric vehicles owned or leased by eligible recipients. Qualifying purchases include EVs purchased from August 1, 2023 to March 31, 2026.
This rebate will be provided to Manitobans owners after they register their vehicle with Manitoba Public Insurance (MPI) and applies only once per vehicle and per vehicle purchaser or lessee.
Other Technical Amendments
Homeowners Affordability Tax Credit and Renters Tax Credit for Mobile Homeowners
The eligibility criteria for mobile homeowners regarding these two credits is clarified to specified that 50% of mobile homeowners’ license fees and 10% of land rental payments are eligible for the Education Property Tax Credit in 2024. Additionally, it is clarified that mobile homeowners are not eligible for the Renters Tax Credit.
Qualified Disability Trusts
A recovery tax is instituted to retroactively nullify any preferential treatment in cases where trust funds do not reach the intended qualified beneficiary.
Land Transfer Tax Administrative Penalties
Adjustments are made to authorize the imposition of administrative penalties in specific instances of noncompliance, such as when an incorrect fair market value is provided during the registration process for land transfer.
Interactive Digital Media Tax Credit
Clarifications are made to specify that expenses linked to eligible projects are to be claimed in the tax year in which they were incurred. Additionally, a sub-category tailored for Manitoba video game companies is created within the Credit framework and corporations meeting the criteria will be relieved from the obligation to obtain a Certificate of Eligibility before commencing project work.
Provincially Administered Tax Audit Periods
Tax audit periods will be standardized to a maximum of six years from the date of notification, except in cases where taxes have been collected but not remitted, or where a person’s misrepresentation is due to neglect, carelessness, or willful default. Additionally, a Notice of Assessment will be required upon the conclusion of all tax audits.
Tax Clearance Certificate Fee and Advance Ruling Fee
Starting May 1, 2024, the $50 fee for tax clearance certificates will be removed, as well as the fees imposed for an Advance Ruling.
Forfeiture of Unmarked Tobacco
Tobacco found unmarked during a warranted search of a building, vehicle, or container will be confiscated and handed over to the Crown.
Repealing the Succession Duty Act
The Succession Duty Act, which imposed taxes on the estates of individuals who passed away from 1971 to 1977, is now obsolete and will be revoked.
Oil and Gas Production Tax – Record Keeping Requirements
The record-keeping obligation for operators under the Act is extended from four to six years in line with the Canada Revenue Agency record retention period policy.
For further information, visit : https://www.manitoba.ca/budget2024/
