Manitoba tabled its 2026 budget on March 24, 2026. This summary outlines key provincial tax measures and related administrative items, including effective dates where provided.
Personal tax measures
No personal income tax rate changes were announced in Manitoba’s 2026 budget. The current combined federal and Manitoba top marginal personal income tax rates for 2026 are outlined below.
| Personal (combined) federal and Saskatchewan top marginal tax rates | |
| Rate | |
| Interest/regular income | 50.40% |
| Capital gains | 25.20% |
| Eligible dividends | 37.78% |
| Non-eligible dividends | 46.67% |
Renters Affordability Tax Credit (RATC) – increase: For the 2027 tax year, the maximum credit increases to $675. The seniors top-up increases to a maximum of $385.71 for seniors with family net income under $40,000.
Homeowners Affordability Tax Credit (HATC) – increase and phase-out for higher-value homes: For the 2027 property tax year, the maximum credit increases from $1,600 to $1,700 for principal residences. Beginning in 2027, the credit is reduced for homes with assessed value over $1 million (reduced by $3.40 per $1,000 above $1 million) and eliminated for homes with assessed value of $1.5 million and above.
Business and industry tax measures
No corporate income tax rate changes were announced in Manitoba’s 2026 budget. The current Manitoba corporate income tax rates for 2026 are outlined below.
| Small business corporations | General corporations | |||
| Rate | Threshold | Non-M&P | M&P | |
| Manitoba | 0% | $500,000 | 12.0% | 12.0% |
| Combined federal and MB | 9.0% | $500,000 | 27.0% | 27.0% |
Film and video production tax credit – administration changes: The budget proposes changes, including mandatory pre-certification, measures intended to reduce potential abuse and fraud, and updates affecting advanced certificates (including inclusion of eligible non-resident labour costs, as described in the budget).
Indirect and other tax measures
Retail sales tax (RST/PST) – exemption expanded for certain grocery-store prepared foods and beverages: Effective July 1, 2026, Manitoba will remove RST on additional food and beverages for human consumption sold by grocery stores (including certain prepared foods and some beverages) as well as prenatal vitamins. The budget materials note RST will continue to apply to beverages with more than 1% alcohol by volume, dietary supplements and taxable non-food items.
Land transfer tax – anti-avoidance rules proposed: The budget proposes amendments (planned effective January 1, 2027) intended to address avoidance arrangements where legal and beneficial ownership are separated.
RST – mandatory electronic filing/payment for registrants: Effective January 1, 2028, businesses registered to collect RST will be required to file returns, remit and pay electronically.
RST – denial of certain vehicle refunds where false information is provided: The budget proposes denying certain RST refunds on vehicle transactions where a bill of sale is falsified to reduce tax payable on registration.
What this means for you
While there are no broad-based income tax rate changes in Manitoba’s 2026 budget, the proposed measures may affect affordability, RST compliance and real estate transactions. Individuals should review eligibility for the enhanced RATC and HATC for 2027, and RST registrants should prepare for mandatory e-filing effective January 1, 2028 and monitor guidance on the expanded grocery-store RST exemptions. Taxpayers should also monitor the proposed land transfer tax anti-avoidance amendments planned for January 1, 2027.
For more information on how these measures may affect you or your business, please contact your Baker Tilly advisor.
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