Manitoba 2025 Budget Highlights

Manitoba Minister of Finance Adrien Sala tabled the province’s 2025 budget on Thursday, March 20, 2025. This year’s budget, titled Building One Manitoba, is focused on rebuilding healthcare, creating jobs, growing the economy and unlocking new private investment.

Personal income tax measures

Basic Personal Amount and tax brackets

Beginning with the 2025 tax year, indexation of the Basic Personal Amount (BPA) and tax bracket thresholds to inflation will be paused. For 2024, the BPA was $15,780 and Manitoba’s tax bracket thresholds and rates were as follows:

For 2025, the maximum impact of this change on an individual with taxable income over $100,000 is estimated to be $87.25.

Renters Affordability Tax Credit

As part of a four-year commitment, the Renters Affordability Tax Credit will be increased to $625 for 2026 (from $575). The seniors’ top-up will also increase to a maximum of $357 (from $328).

Both amounts will continue to increase annually until the credit reaches $700 and the seniors’ top-up reaches $400.

Volunteer Fire Fighter and Search and Rescue Amount

The Volunteer Fire Fighter and Search and Rescue Amount is doubled to $6,000 (from $3,000), resulting in a maximum annual credit of $648, beginning in 2025.

Business income tax measures

Cultural Industries Printing Tax Credit

The Cultural Industries Printing Tax Credit, originally set to expire on December 31, 2024, is now permanent. This tax credit offers Manitoba’s printing industry a 35 percent refundable credit on salary and wages paid to Manitoba employees.

Indirect tax measures

Cloud computing

Effective January 1, 2026, retail sales tax will apply to cloud computing services, such as subscriptions to software, data storage, and remote computer processing to address technological changes that have occurred in the industry.

Other tax measures

Heath and Post Secondary Education Tax Levy

The Health and Post Secondary Education Tax Levy is a tax imposed on remuneration that is paid to employees by employers with a permanent establishment in Manitoba. Effective January 1, 2026, the exemption threshold is raised from $2.25 million to $2.5 million of annual remuneration. In addition, the threshold below which businesses pay a reduced effective rate is raised from $4.5 million to $5 million.

Land transfer tax review

Land transfer tax provisions in The Tax Administration and Miscellaneous Taxes Act currently do not require the payment of land transfer taxes where there is an unregistered change in the beneficial ownership of land. The government will be considering legislative changes to prevent the avoidance of land transfer tax through the use of legal structures in which legal and beneficial ownership of property are separated.

Homeowners Affordability Tax Credit

Budget 2024 announced that the School Tax Rebate and Education Property Tax Credit will be replaced by the new Homeowners Affordability Tax Credit of up to $1,500 on principal residences in 2025. For the 2026 property tax year, the maximum Homeowners Affordability Tax Credit will be increased by $100, from $1,500 to $1,600.

Permanent gas tax relief

Building on the temporary gas tax holiday that was put into place effective January 1, 2024, a permanent reduction to the provincial fuel tax for gasoline, diesel and marked gasoline of 10 percent is put in place effective January 1, 2025.

Electric Vehicle rebate program

Budget 2025 continues this rebate program, through which Manitobans can receive $2,500 for a used EV or plug-in hybrid and $4,000 for a new EV or plug-in hybrid.

Security rebates for businesses

The budget announces the expansion of the security rebate program for small and medium-sized businesses, for security products purchased by Manitoba businesses.

Tax administration

Various administrative tax measures are announced in the budget, including but not limited to:

• Income Tax Act: Changes are made to exclude trusts from eligibility for the Family Tax Benefit and to align eligibility timing for the Seniors School Tax Rebate with the Homeowners Affordability Tax Credit.
• Retail Sales Tax and Tobacco Tax Registration Registry: Manitoba Finance will be implementing an online service in 2025 that will enable taxpayers to verify if a business is registered for retail sales tax. A similar registry will also be developed for tobacco tax.

More details and highlights of the 2025 Manitoba budget can be found here.