Last updated: Apr. 21, 2022
On April 12, 2022, Manitoba’s Finance Minister Cameron Friesen presented the province’s fiscal 2022-23 budget.
Budget 2022 sets the path to recovery in five priority areas: healthcare, the economy, communities, affordability, and the environment.
Provincial deficits of $1.4 billion for 2021-22, $548 million for 2022-23, and $440 million for 2023-24 are projected. The government foresees a balanced budget in seven years.
No changes were proposed to corporate or personal tax rates.
Highlights of Budget 2022 investments in the five priority areas
Strengthening Health Care
- $7.2 billion for the health care sector, with money allocated to increasing capacity
- $110 million to address the surgical and diagnostic backlog that accumulated during the pandemic
- $630 million for ongoing COVID-19 response and other contingencies
Affordability for Manitobans
- Expanding eligibility for the Child Care Subsidy Program to support an average of $10 a day per child for regulated childcare spaces
- Phasing out the education property taxes by increasing the education property tax rebate from 25% to 37.5% in 2022 and 50% in 2023
- Introducing a new Renters Tax Credit to 45,000 households
- Increasing shelter benefits for low-income Manitobans by investing:
- $9 million for Employment and Income Assistance Rent Assist indexation
- $8.9 million for non-Employment and Income Assistance Rent Assist indexation
Building the Economy
- Small Business Venture Capital Tax Credit is being made permanent and it is also being expanded to support venture capital funding
- $50 million investment in a venture capital fund
- Decreasing the tax payroll for 970 businesses throughout Manitoba
- Implementing the Skills Talent and Knowledge Strategy
- $5 million in immigration programming to help attract newcomers to Manitoba
- Over $2 million supporting new property development in Manitoba
Investing in Manitoba Communities
- $240 million commitment to expand eligibility for childcare and increase spaces
- Building more schools under the 20 new schools commitment
- Additional $125 million for funding in schools
- Additional $10 million for enhancing the Building Sustainable Communities Program, with a $25 million total investment in 2022/23
- Development of the Energy Policy Framework and new Water Management Strategy
- $1.5 million to expand the Conservation and Climate Fund
- $6 million for 12 initiatives to advance the Made in Manitoba Climate and Green Plan
- $50 million over the next two years for remediation and rehabilitation of orphaned and abandoned mine sites
- Increase of $1.2 million to forestry programs
- $14 million allocated to provincial parks
- $100 million to the Lake Manitoba and Lake St. Martin Outlet Channels Project to enhance flood protection
Personal Tax Measures
Manitoba did not announce any changes to its personal income tax rates for 2022. As a result, Manitoba’s combined federal and provincial top marginal rates for income, capital gains, and dividends is as follows:
Combined Federal/Provincial Top Marginal Rates
2021/2022 Manitoba Personal Tax Rates
For taxable income of more than $100,392, the 2022 combined federal-Manitoba personal income tax rates are outlined as follows:
Personal Tax Credits: Basic Personal Amount
As was announced in Budget 2016, Manitoba personal income tax brackets and the basic personal amount are indexed to inflation by the Manitoba Consumer Price Index.
Effective for the 2022 tax year, the basic personal amount will be increased from $9,936 to $10,145.
Personal tax credits for 2021
The maximum tax credit amounts and actual Manitoba tax credits for 2020 and 2021 are set out below.
Corporate Tax Measures
Corporate tax rates – No Change
Manitoba did not announce any changes to its corporate income tax rates for 2022. As a result, Manitoba’s corporate income tax rates remain as follows:
Corporate Tax Rates
Extensions to Existing Tax Credits
Small Business Venture Capital Tax Credit
Budget 2022 boosts the Small Business Venture Capital Tax Credit to benefit Manitobans participating in venture capitals funds, thereby improving access to capital and supporting entrepreneurs. This credit provides a non-refundable tax credit of up to 45% to individuals and corporations. Budget 2022 also makes this credit permanent.
Community Enterprise Development Tax Credit
Budget 2022 makes the Community Enterprise Development Tax Credit, scheduled to expire on December 31, 2022, permanent. This tax credit provides a refundable tax credit of up to 45% to individuals and corporations that acquire equity capital in community-based enterprises in Manitoba.
Fuel Tax (Off-Road Peat Harvesting)
MB Budget 2022 proposes that fuel used in off-road operation of peat harvesting equipment be exempt from Manitoba’s Fuel Tax, effective May 1, 2022
OTHER MEASURES (Not Related To Income Tax)
Education Property Tax Rebate
- The Education Property Tax Rebate on residential and farm properties will increase to 37.5% in 2022 (from 25%) and 50% in 2023.
- Other property owners, including railway, businesses, and industrial will continue to receive 10% rebates in both 2022 and 2023, consistent with 2021.
- Other education property tax credits/rebates, such as the Education Property Tax Credit/Advance, the Seniors Education Property Tax Credit, the Seniors School Tax Rebate and Farmland School Tax Rebate, may also be available to Manitoba resident property owners, depending on the type of property they own.
Health and Post-Secondary Education Tax Levy
In 2021 and 2022, Manitoba reduced the impact of the Health and Post-Secondary Education Tax Levy by increasing the exemption level and reduction level at which a lower tax rate is paid.
Budget 2022 increases the exemption in 2023 to $2.0 million (from $1.75 million) and the payroll threshold to $4.0 million (from $3.5 million).
According to the government, the new higher thresholds will benefit businesses in the construction, manufacturing, retail, wholesale, professional and restaurant sectors
FBC was founded on the belief that Canadians should receive every benefit of filing their taxes. Three-generations later, our family-owned business continues to support farmers, truckers, trades and other small businesses minimize their taxes, simplify their books, and pay their employees.
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