Summary: Manitoba Budget 2025

It included both a baseline budget and a tariff budget to address the evolving landscape of US tariffs. The baseline budget includes a revenue contingency of $200 million and a provision for loans and guarantees of $380 million directly related to tariffs. The tariff budget includes a tariff response contingency of $500 million, a revenue contingency of $800 million, and a provision for loans and guarantees of $505 million.

MB Budget 2025 suspends inflationary adjustments to personal tax brackets, introduces new personal tax credits, and enhances existing business tax credits, among other measures.

The estimated deficit for the 2024-25 fiscal year is $1.239 billion, compared to the $796 million deficit projected in the previous budget.

Fiscal projections for the next three years are as follows:

Tax measures related to housing

Homeowner’s Affordability Tax Credit

The Homeowner’s Affordability Tax Credit has increased to $1,600 (from $1,500) for 2026.

Business tax measures

Corporate tax rates

There are no proposed changes to the corporate tax rates or the $500,000 small business limit.

2025 combined federal and provincial corporate tax rates:

Health and Post Secondary Education Tax Levy

The Health and Post Secondary Education Tax Levy limits have increased to provide a full exemption for annual remuneration of $2.5 million (from $2.25 million) and a reduced rate for annual remuneration of up to $5 million (from $4.5 million). These increased exemption limits are effective January 1, 2026.

Young Farmer Rebate

The Young Farmer Rebate program is increased to allow a rebate of 2% on the first $400,000 (from $300,000) of eligible loan principal. The lifetime limit for the rebate is increased to $40,000 (from $30,000).

Cultural Industries Printing Tax credit

The Cultural Industries Printing Tax credit is now permanent. This 35% refundable tax credit on remuneration paid to Manitoba employees was previously scheduled to expire December 31, 2025.

Family Tax Benefit for Trusts

Administrative changes will be made to the Income Tax Act such that trusts are excluded from the Family Tax Benefit. Currently, trusts are entitled to a credit of $2,065 reduced by 9% of the trust’s income. The budget didn’t contain an effective date for this measure.

Mining Tax

The 0.5% refundable Mining Tax is eliminated. The budget didn’t contain an effective date for this measure.

Personal tax measures

Basic personal amount

Indexation of the basic personal amount (BPA) and the tax bracket thresholds were frozen to 2024 levels. For 2025, the BPA will remain $15,780.

The personal tax brackets and the respective marginal tax rates for 2025 are as follows:

Beginning with the 2025 tax year, indexation to inflation of the basic personal amount and the provincial tax bracket thresholds will be frozen.

The top combined federal and provincial marginal tax rates for 2025 are as follows:

Renters Affordability Tax Credit

The maximum tax credit amount for residential renters will increase to $625 (from $575) for the 2026 tax year. This credit provides tax savings to individuals who rent their principal residence, individuals renting a social housing property, and individuals claiming non-employment and income assistance rent benefits. Seniors with a family net income of less than $40,000 are eligible for an additional top-up amount of $357 (from $328).

Volunteer Firefighter and Search and Rescue amount

The Volunteer Firefighter and Search and Rescue amount is increased to $6,000 (from $3,000), providing volunteer firefighters and search and rescue personnel with a maximum annual credit of $648 (from $324)

Sales and other tax measures

Cloud computing

Retail sales tax (RST) will apply to cloud computing services—including subscriptions to software, data storage, web hosting, data retrieval, and data processing—effective January 1, 2026. Previously, if software was merely accessed on a device situated in Manitoba, it wasn’t subject to RST. Businesses resident and non-resident in Manitoba will be required to register to collect RST on these services.

Land Transfer Tax

Legislative changes are being considered to ensure the Land Transfer Tax is payable on the transfer of beneficial ownership of real property. Currently the tax is only charged if legal title is transferred.

First Nations Tobacco Band Assessments

Existing Tobacco Band Assessment agreements with First Nations are being updated to increase the duration to 10 years (from five years) and to reduce the administration fee to 0.25% (from 1.0%).

Tax number verification

A registry to verify a business’ RST number will be developed and implemented by the end of 2025. A similar registry is being developed to verify tobacco registration numbers.

Gas Tax

The provincial fuel tax for gasoline, diesel, and marked gasoline is reduced by 10% effective January 1, 2025.

$10-a-day childcare

The $10-a-day childcare program is extended to cover non-school days.

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

Visit our Budget 2025 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.}