All the Numbers

Income tax in Manitoba

From the All the Numbers wiki · Tax

A Manitoba resident's provincial tax is worked out on the MB428, attached to the federal return.

The rules (2026)

Brackets: 10.8% up to $47,000; 12.75% to $100,000; 17.4% above.[1] Credits are taken at 10.8%.

  • Basic personal amount: $15,780.[2] It shrinks in proportion to net income above $200,000 and is gone $200,000 later.[3]
  • Spouse or eligible dependant: $9,134 less the dependant's net income.[4]
  • Age amount: $3,728 at 65 or over, less 15% of net income above $27,749.[5]
  • Pension amount: $1,000.[6] CPP and EI are credited as federally.[7]
  • Family tax benefit: a credit amount of $2,065, plus $2,065 with a spouse or dependant claim, $2,065 at 65 and $2,752 for each child, less 9% of the person's own net income. It replaces the low-income reductions other provinces have.[8]
  • Dividends: 8% (eligible) and 0.7835% (other) of the grossed-up dividend.[9][10]
  • Minimum tax: 50% of the federal additional tax.[11] Foreign tax is credited on the T2036.[12]

There is no surtax and no health premium.

Renters Affordability Tax Credit

A household renting its home in Manitoba gets $625 a year, counted by the months rented and never more than the rent paid. When you or your spouse is 65 or older at the end of the year, it is $982.14 less the lesser of $357.14 and 0.8929% of your and your spouse's net income. From 2027 the figures are $675, $1,060.71, $385.71 and 0.9643%. It is refundable: it is paid even when no tax is owed.[13]

All the Numbers counts the months in which your plan pays rent and the rent it pays. Only one person in a home can claim it; in a couple, the spouse with the higher net income claims it, and the amount is the same either way.[14]

School tax on a home you own

A home you own and live in pays less school tax: the school taxes on the bill are reduced by up to $1,600 a year ($1,700 from 2027). This is the Homeowners Affordability Tax Credit; if the bill did not apply it, you claim it on your return.[15] From 2027, a home assessed over $1,000,000 gets less, and nothing once it is $500,000 over.[16]

When you or your spouse is 65 or older, the Seniors' School Tax Rebate pays up to $235 of the school taxes left after that reduction, less 1% of your and your spouse's net income over $40,000.[17]

A plan does not split your property tax into its parts, so All the Numbers takes the school tax as 54.46% of it, its share of Winnipeg's 2026 rate.[18] It takes the reduction off each month's property tax, uses the home's market value as its assessed value, and gives a home with a rented part no reduction. In a couple, the spouse with the higher net income claims the rebate.[19]

After 2026

Manitoba stopped indexing in 2024: its brackets and credit amounts are written in the statute as dollar figures.[20] With no end date to the freeze, the plan treats them as it treats Ontario's two fixed thresholds: they grow with the plan's rate by default, and stay at their dollars if the plan is set to the law as written. See tax brackets after 2026.

What it does not do

The Manitoba Child Benefit and 55 PLUS (applied for), the Homeowners Affordability Tax Credit on a home with a rented part, and the Primary Caregiver and Fertility Treatment credits are not modelled.

See also

  • Tax brackets after 2026 are projected, not published · Every year after 2026 is taxed with the 2026 brackets, personal amounts, credits and CPP/EI ceilings grown at the plan's inflation rate. That is how CRA indexes them, but the real figures are announced each fall and will differ.

References

  1. ↑The Income Tax Act (Manitoba) s.4.1(2), 2024 and later: "(a) 10.8% of the TI; (b) if the TI exceeds $47,000, 1.95% of the excess; (c) if the TI exceeds $100,000, 4.65% of the excess" — 10.8% / 12.75% / 17.4% · Manitoba personal income tax brackets and rates · See the source · effective 2024-01-01
  2. ↑CRA TD1MB 2026, line 1: "can enter $15,780 … if your net income … will be equal or greater than $400,000, enter 0" · Manitoba basic personal amount · $15,780 · effective 2026-01-01
  3. ↑The Income Tax Act (Manitoba) s.4.6(3.0.1): "reduced by … A × (B/$200,000) … B is the lesser of (a) $200,000; and (b) the amount by which the individual's income for the year exceeds $200,000" · Manitoba basic personal amount phase-out: reduced in proportion to income over $200,000 across the next $200,000 · See the source · effective 2025-01-01
  4. ↑CRA TD1MB 2026, lines 6–7: "Enter the difference between $9,134 and the estimated net income of your spouse" · Manitoba spouse or eligible dependant amount: this less the dependant's net income · $9,134 · effective 2026-01-01
  5. ↑The Income Tax Act (Manitoba) s.4.6(4): "$3,728 −.15A … A is the amount … by which the individual's income for the year would exceed $27,749"; TD1MB 2026 line 2 (nil at $52,602) · Manitoba age amount (65 or older at year end), less 15% of net income over the threshold · See the source · effective 2026-01-01
  6. ↑CRA TD1MB 2026, line 3: "enter whichever is less: $1,000 or your estimated annual pension" · Manitoba pension income amount · $1,000 · effective 2026-01-01
  7. ↑Manitoba Finance — Personal Tax Credits: the non-refundable credit block, "multiplied by the bottom tax rate of 10.8%", includes Canada Pension Plan contributions and Employment Insurance premiums · MB428 carries base CPP contributions and EI premiums as credits at the lowest Manitoba rate · effective 2026-01-01
  8. ↑The Income Tax Act (Manitoba) s.4.6(16.1): "the amount … by which 9% of the individual's income for the year is exceeded by the total of $2,065 and … (a) $2,065, if the individual has claimed [a spouse or eligible dependant amount]; (b) $2,752 for each dependant in relation to whom the individual or the individual's spouse … was … an eligible individual (as defined in section 122.6 of the federal Act) … (d) $2,065, if the individual was at least 65" · Manitoba family tax benefit: amounts for the individual, a spouse or dependant claim, age 65 and each child, less 9% of the individual's income, taken as a credit amount · See the source · effective 2026-01-01
  9. ↑The Income Tax Act (Manitoba) s.4.7(1)(b)(ii): "8% of the total of the amounts included … under paragraph 82(1)(a.1) (eligible dividends) and subparagraph 82(1)(b)(ii) (eligible dividends gross-up)" · Manitoba dividend tax credit on eligible dividends, as a share of the grossed-up dividend · 8% · effective 2012-01-01
  10. ↑The Income Tax Act (Manitoba) s.4.7(1)(b)(i.2): "0.7835% of the total amount included … in respect of a taxable dividend for which the federal dividend gross-up rate is 17% or lower" · Manitoba dividend tax credit on other than eligible dividends, as a share of the grossed-up dividend · 0.78% · effective 2019-01-01
  11. ↑The Income Tax Act (Manitoba) s.4.5: "50% of the amount that would be his or her additional tax for the year determined under subsection 120.2(3) of the federal Act" · Manitoba additional minimum tax: this share of the federal additional tax · 50% · effective 2000-01-01
  12. ↑The Income Tax Act (Manitoba) s.4.9 (foreign tax credit) · Manitoba foreign tax credit (T2036): foreign non-business tax beyond the federal credit, up to the foreign share of Manitoba tax · effective 2026-01-01
  13. ↑The Income Tax Act (Manitoba) s.5.6.1(3): "the lesser of (a) the individual's eligible rental cost for the year; and (b) … $625 × M/12"; s.5.6.1(4): "($982.14 − A) × M/12 … A is the lesser of $357.14 and 0.8929% of the individual's family income"; from 2027, S.M. 2026, c. 44, s.5(2)–(3): $675, $1,060.71, $385.71 and 0.9643% · Manitoba Renters Affordability Tax Credit: a yearly amount times the months rented over 12, at most the rent paid; with a 65-or-older person in the couple, a higher amount less the lesser of a cap and a rate of family income. Each row applies from its year · See the source · effective 2026-01-01
  14. ↑Our convention under ITA (MB) s.5.6.1(2) item 3 (one claim a dwelling): the amount does not depend on who claims, since the seniors' reduction is on family income (ties: the earlier plan person, as for the spouse amount). The plan's rent is taken as rent for the household's principal residence in Manitoba, paid to another person · In a couple, the spouse with the higher net income claims the Manitoba Renters Affordability Tax Credit, for the months the plan pays rent and up to the rent it pays · effective 2026-11-02
  15. ↑The Income Tax Act (Manitoba) s.5.6(1): "reduced by the lesser of (a) $1,600; and (b) the amount of the school taxes"; s.5.4(2): "$1,600 × De/Dy … exceeds … the school tax reduction"; from 2027, S.M. 2026, c. 44, ss.3(2), 4(1): "$1,700" · Manitoba Homeowners Affordability Tax Credit (the school tax reduction on the bill): the school taxes on an owned principal residence are reduced by the lesser of these taxes and the yearly amount, prorated by the days it is the principal residence. Each column applies from its year · See the source · effective 2026-01-01
  16. ↑The Budget Implementation and Tax Statutes Amendment Act, 2026, S.M. 2026, c. 44, s.3(3) (new s.5.4(3)) and s.4(2) (new s.5.6(1.0.1)): "reduced by … A × (B/$500,000) … B is the lesser of (a) $500,000, and (b) the amount by which the assessed value … exceeds $1,000,000" · From 2027, Manitoba's school tax reduction and Homeowners Affordability Tax Credit shrink in proportion to the assessed value over a threshold, across the next band, nil at the threshold plus the band · See the source · effective 2027-01-01
  17. ↑The Income Tax Act (Manitoba) s.5.5.1(2): "(A −.01B) × De/Dy … A is the lesser of (a) $235, and (b) the amount, if any, by which (i) the individual's eligible school taxes for the year, exceeds the total of (ii) the homeowners affordability tax credit … and (iii) the school tax reduction … B is the amount, if any, by which the individual's family income for the taxation year exceeds $40,000" · Manitoba Seniors' School Tax Rebate: the lesser of a maximum and the school taxes left after the Homeowners Affordability Tax Credit, less a rate of family income over a threshold, prorated by the days eligible; for a homeowner who or whose spouse is 65 or older · See the source · effective 2026-01-01
  18. ↑Our convention: the Winnipeg School Division's share of Winnipeg's 2026 combined residential mill rate, 15.994 of 29.366 mills (City of Winnipeg, 2026 Combined Mill Rates by School Division) · The share of a Manitoba home's property tax that is school tax, for the school tax reduction and the Seniors' School Tax Rebate · 54.46% · effective 2026-01-01
  19. ↑Our convention under ITA (MB) ss.5.4, 5.5.1 and 5.6: whether the reduction comes on the bill (s.5.6) or as the credit on the return (s.5.4), the year's amount is the same, so it is taken on the bill month by month. A home with a rented suite or rented share takes none (s.5.6(1.1) excludes a property with more than one dwelling unit from the bill reduction; the credit on the return for such a home is left out). The rebate is on the couple's family income, so who claims does not change it · Manitoba's school tax reduction is taken off each month's property tax on an owned principal residence with no rented part; the assessed value is the home's market value; the spouse with the higher net income claims the Seniors' School Tax Rebate · effective 2026-11-02
  20. ↑The Income Tax Act (Manitoba) s.4.1(3) ("For the 2017 to 2023 taxation years, the dollar amounts … are to be indexed"), s.4.6(3.1) (basic personal amount, 2017 to 2022); TD1MB 2026 shows the 2025 amounts unchanged · Manitoba's dollar amounts are fixed in the statute: no indexing provision applies after 2023 · effective 2024-01-01