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“We’re making smart, targeted investments. We can take steps to fix health care and lower costs, and we can do it while being responsible with public money and charting a path back to balance. That’s what Manitobans can expect from our first budget.”
Manitoba Finance Minister Adrien Sala
News release for the 2024–25 budget
On 2 April 2024, Manitoba Finance Minister Adrien Sala tabled the province’s fiscal 2024‑25 budget. The budget contains several tax measures affecting individuals and corporations. The budget contains no increases in personal or corporate income tax rates but does introduce a phase-out of the basic personal amount above a certain net income level, beginning in 2025.
The minister anticipates a deficit of $796 million for 2024‑25 and projects deficits for each of the following two years, before returning to a small surplus in 2027‑28.
Following is a brief summary of the key tax measures.
No changes are proposed to the corporate income tax rates or the $500,000 small-business limit.
Manitoba’s 2024 corporate income tax rates are summarized in Table A.
Table A – 2024 Manitoba corporate income tax rates1
Manitoba |
Federal and Manitoba combined |
|
---|---|---|
Small-business tax rate2 |
0.00% |
9.00% |
General corporate tax rate2, 3 |
12.00% |
27.00% |
1 The rates represent calendar-year-end rates unless otherwise indicated.
2 The federal corporate income tax rates for manufacturers of qualifying zero-emission technology are reduced to 7.5% for eligible income otherwise subject to the 15% federal general corporate income tax rate or 4.5% for eligible income otherwise subject to the 9% federal small-business corporate income tax rate. These reductions are not reflected in the combined federal and Manitoba rates above.
3 An additional federal tax applies to banks and life insurers at a rate of 1.5% on taxable income (subject to a $100 million exemption to be shared by group members).
The minister also proposed the following business tax measures:
The budget does not include any changes to personal income tax rates.
The 2024 Manitoba personal income tax rates are summarized in Table B.
Table B – 2024 Manitoba personal income tax rates
First |
Second |
Third |
---|---|---|
$0 to $47,000 |
$47,001 to $100,000 |
Above $100,000 |
10.80% |
12.75% |
17.40% |
The budget confirmed that the tax bracket thresholds will return to annual indexing beginning in 2025.
For taxable income in excess of $111,733, the 2024 combined federal–Manitoba personal income tax rates are outlined in Table C.
Table C – Combined 2024 federal and Manitoba personal income tax rates
Bracket |
Ordinary income1 |
Eligible dividends |
Non‑eligible dividends |
---|---|---|---|
$111,734 to $173,205 |
$47,001 to $100,000 |
28.12% |
38.62% |
$173,206 to $246,7522 |
12.75% |
32.70% |
42.44% |
Above $246,752 |
50.40% |
37.78% |
46.67% |
1 The rate on capital gains is one-half the ordinary income tax rate.
2 The federal basic personal amount comprises two elements: the base amount ($14,156 for 2024) and an additional amount ($1,549 for 2024). The additional amount is reduced for individuals with net income in excess of $173,205 and is fully eliminated for individuals with net income in excess of $246,752. Consequently, the additional amount is clawed back on net income in excess of $173,205 until the additional tax credit of $232 is eliminated; this results in additional federal income tax (e.g., 0.32% on ordinary income) on net income between $173,206 and $246,752.
This budget proposes changes to the following personal credits/amounts:
Other personal tax measures include:
The minister made the following retail sales tax announcements:
Beginning in 2025, the new homeowners affordability tax credit of up to $1,500 will replace the existing school tax rebate and education property tax credit on principal residences. Several other changes are also being made to streamline the current system of school tax credits and rebates, specifically impacting seniors, farm property owners and commercial property owners.
The zero cents per litre gas tax rate (for gasoline, diesel and marked gasoline) implemented on 1 January 2024 that was set to expire on 30 June 2024 will be extended for a further three months, now expiring on 30 September 2024.
The budget confirms that Manitoba will sign a Coordinated Vaping Product Taxation Agreement with the federal government, under which the federal government will administer and collect excise duty on vaping products and share the resulting revenues with the province. The new vaping tax is expected to begin applying in Manitoba on 1 January 2025.
The budget announced several administrative measures, including the following:
For more information, please contact your EY or EY Law advisor or one of the following professionals:
Jason Burbank
+1 204 933 0240 | jason.a.burbank@ca.ey.com
Nina Pekach
+1 204 933 0279 | nina.pekach@ca.ey.com
Matthew Lapka
+1 204 954 5541 | matthew.lapka@ca.ey.com
Mark Jing
+1 204 933 0280 | mark.jing@ca.ey.com
Budget information: For up-to-date information on the federal, provincial and territorial budgets, visit ey.com/ca/Budget.