Manitoba Budget 2026

While personal and corporate tax rates remain the same, MB Budget 2026 introduces new measures and expands existing ones aimed at improving affordability in the province. This includes enhancing existing housing-related personal tax credits and introducing changes to retail sales tax.

The estimated deficit for the 2025-26 fiscal year is $1.666 billion, compared to the $794 million deficit projected in the previous budget. 

Fiscal projections for the next three years are as follows:

Business tax measures

Corporate tax rates

There are no proposed changes to the corporate tax rates or the $500,000 small business limit. Manitoba continues to have a 0% provincial income tax rate on active business income earned in the province, up to the small business limit.

2026 combined federal and MB corporate tax rates

Film and Video Production Tax Credit

MB Budget 2026 proposes changes to the Film and Video Production Tax Credit, which is a refundable tax credit for eligible film and video productions in Manitoba. The budget introduces a mandatory pre-certification process for the credit. In addition, eligible non-resident labour costs will now be included in calculating the credit.

Personal tax measures

There are no proposed changes announced to personal income tax rates. 

The personal tax brackets and the respective marginal tax rates for 2026 are as follows: 

The top combined federal and provincial marginal tax rates for 2026 are as follows:

Renters Affordability Tax Credit

The maximum tax credit amount for residential renters will increase to $675 (from $625) for the 2027 tax year. This refundable credit provides tax savings to individuals who rent their principal residence in Manitoba. The budget also increases the top-up amount for qualifying seniors with a family net income of less than $40,000 to a maximum of $386 (from $357).

Sales and excise tax measures

Retail sales tax 

Expanded RST exemption for food and beverage items 

MB Budget 2026 expands the 7% retail sales tax (RST) exemption to include additional food and beverages sold by grocery stores, beyond the existing exemption for basic groceries, effective July 1, 2026. The newly exempt items include ready‑to‑eat prepared foods, platters or arrangements of prepared foods, carbonated beverages, and beverages containing 1% or less alcohol by volume. Beverages containing more than 1% alcohol by volume, dietary supplements, and other non‑food items sold by grocery stores will continue to be subject to RST.

RST exemption for prenatal vitamins

RST will be removed from prenatal vitamins, effective July 1, 2026. Other vitamins and minerals will remain subject to 7% RST.

Electronic filing of RST returns

All businesses registered to collect RST will be required to file, remit, and pay electronically, effective January 1, 2028, 

RST refund on the purchase and sale of vehicles

The budget proposes to deny taxpayers RST refunds on vehicle purchases and sales, where they’re found to have provided false information on the bill of sale to allow the purchaser to pay less tax upon vehicle registration. 

Land transfer tax

MB Budget 2026 confirms the government’s intention to amend the land transfer tax legislation to prevent avoidance through the separation of legal and beneficial ownership of property. Currently, Manitoba’s land transfer tax applies only on the transfer of legal title. As a result, the tax may not be applicable where the seller retains legal title, and only the beneficial ownership of the property is transferred. The amendments are expected to come into effect on January 1, 2027.

Other notable measures

Homeowners Affordability Tax Credit

The maximum Homeowner’s Affordability Tax Credit on principal residences increases to $1,700 (from $1,600) for the 2027 property tax year. The tax credit applies as a deduction against gross school taxes on the homeowner’s property tax bill. This increase benefits homeowners whose principal residence is subject to school taxes exceeding $1,600 in 2027. 

Beginning in 2027, the credit will be reduced for homeowners whose principal residence has an assessed value exceeding $1 million, at a rate of $3.40 for every $1,000 over $1 million. As a result, homes with an assessed value greater than $1.5 million will not be eligible for the credit.

See the province’s website for more information about this credit.

Have questions? Let’s talk. Contact your local advisor or reach out to us here.

Visit our Budget 2026 hub to learn more about all federal and provincial budgets.   

^{Disclaimer 
The information contained herein is general in nature and is based on proposals that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice or an opinion provided by Doane Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, specific circumstances or needs and may require consideration of other factors not described herein.}