2025 Manitoba budget tax highlights

On March 20, the Manitoba government released its 2025 budget. The following are highlights of the key tax measures.

Personal tax measures

No personal income tax rate changes were announced in this year’s budget. The current personal combined income tax rates for 2025 are outlined below:

Renters Affordability Tax Credit

For the 2025 tax year, an increased Renters Tax Credit of up to $575 will be provided, and the seniors top‑up will be increased to a maximum of $328. Both amounts will be increased each year of the current mandate.

Homeowners Affordability Tax Credit

For the 2026 property tax year, the budget raises the maximum Homeowners Affordability Tax Credit to $1,600, up from a previous $1,500.

Volunteer Firefighter and Search and Rescue Amount

For the 2025 tax year, the amount has been doubled from $3,000 to $6,000.

Corporate tax measures

No corporate income tax rate changes were announced in this year’s budget. The current corporate income tax rates for 2025 are outlined below:

Health and Post Secondary Education Tax Levy

Effective Jan. 1, 2026, the threshold for the payroll tax exemption is increased to $2.5 million (from $2.25 million) of annual remuneration. The upper limit for the application of a reduced effective rate is also increased to $5 million (from $4.5 million) of annual remuneration.

Cultural Industries Printing Tax Credit

The budget confirms this refundable tax credit will be made permanent.

Mining Tax Act

The budget makes significant changes to the Mining Tax Act to clarify the following technical points:

• Repealing the new investment tax credit, which no longer applies as it relates to investments made prior to Jan. 1, 2004
• Eliminating the requirement for the Minister of Finance to designate a new mine or major expansion
• Eliminating the special tax rate of 0.5 per cent that applies in addition to regular tax rates on the profit of all mining operators (it is currently paid and then refundable to mining operators)

Corporation Capital Tax Act

Effective for fiscal years beginning after March 31, 2025, the corporation capital tax paid by Crown corporations is eliminated.

Other tax measures

Retail Sales Tax (RST)

Effective Jan. 1, 2026, RST will apply to cloud computing services, such as subscriptions to software, data storage and remote computer processing.

Tobacco band assessment agreements

The budget updates the tobacco band assessment agreements with participating First Nations to reduce the administrative fee from one per cent to 0.25 per cent and increase the term of the agreement from five to 10 years.

Land transfer tax administration

The budget is reviewing and considering legislative changes to prevent avoidance of land transfer tax through use of legal structures in which legal and beneficial ownership of property are separated.

RST and tobacco tax registration registry

The budget announced Manitoba Finance will implement an online service allowing verification of a business’s registration status for RST. A similar registry is under development for the tobacco tax.

Next steps

Contact your Baker Tilly advisor to learn more about how we can help you navigate the complexities of the Canadian tax system.