Last updated: Apr. 2, 2025 

Manitoba Budget 2025 Highlights

The Manitoba government has tabled its 2025 provincial budget, with a projected $1.2 billion deficit for 2024–25 and a cautious fiscal outlook extending into 2026. While no changes were made to corporate or personal income tax rates, the budget focuses on targeted tax relief, affordability measures, and support for key sectors, including small businesses and local industries.

This summary highlights the most relevant changes and opportunities for small business owners, farmers, and individual Manitobans.

Budget Focus & Fiscal Outlook

The 2025 Manitoba budget, Building One Manitoba, emphasizes rebuilding healthcare, creating jobs, growing the economy, and unlocking private investment. The government forecasts a $1.2 billion deficit for 2024–25, with projected deficits of $794 million in 2025–26 and $327 million in 2026–27.

For Individuals & Families

Personal Income Tax

• No change to personal tax rates.
  2025 tax brackets (unchanged from 2024):

Taxable Income	Tax Rate
$0 – $47,000	10.8%
$47,001 – $100,000	12.75%
Over $100,000	17.4%

• Indexation paused: Basic Personal Amount ($15,780 in 2024) and brackets will not increase with inflation for 2025.
  • Max estimated impact for high-income earners: $87.25

Affordability Credits

• Renters Affordability Tax Credit:
  • Increased to $625 in 2026 (from $575)
  • Seniors’ top-up increased to $357 (from $328)
  • Both amounts will increase annually to $700 and $400 respectively
• Homeowners Affordability Tax Credit:
  • New credit introduced in 2024 to replace school tax rebates
  • Max credit increases to $1,600 in 2026 (from $1,500)

Support for Volunteers

• Volunteer Firefighter & Search and Rescue Credit:
  • Doubled to $6,000 eligible amount
  • Max annual credit: $648 (from $324), effective 2025

EV Rebate Program

• Ongoing rebates for:
  • $4,000 for new EVs or plug-in hybrids
  • $2,500 for used EVs or plug-in hybrids

For Small Businesses & Farmers

Corporate Tax

• No changes to corporate income tax rates:
  • 0% on first $500,000 of active business income
  • 12% general provincial rate
  • Combined federal/provincial small business rate remains 9%
• Corporation Capital Tax:
  • Eliminated for Crown corporations (for fiscal years beginning after March 31, 2025)

Health and Post Secondary Education Tax Levy (Effective Jan 1, 2026)

• Exemption threshold raised to $2.5 million (from $2.25M)
• Reduced rate threshold raised to $5 million (from $4.5M)

Cultural Industries Support

• Cultural Industries Printing Tax Credit made permanent
  • 35% refundable credit on wages paid to Manitoba-based employees in the printing industry

Security Rebate Expansion

• Security rebates expanded for small and medium-sized businesses
  • Covers purchases of security equipment made by Manitoba-based businesses

Indirect & Consumption Taxes

Cloud Computing Tax

• Retail Sales Tax (RST) will apply to:
  • Software subscriptions
  • Data storage
  • Remote processing services

Effective January 1, 2026

Permanent Fuel Tax Relief

• 10% permanent reduction to fuel tax on:
  • Gasoline
  • Diesel
  • Marked gasoline
    Effective January 1, 2025

Administrative & Technical Measures

Land Transfer Tax Review

• Government will consider legislation to prevent avoidance of land transfer tax through unregistered beneficial ownership structures

 Trust & Family Benefit Changes

• Trusts excluded from the Family Tax Benefit
• Seniors’ School Tax Rebate timing now aligned with the Homeowners Affordability Tax Credit

Online Tax Registries (2025)

• Launching two online registries to verify:
  • Retail Sales Tax (RST) registration
  • Tobacco Tax registration

Summary for Manitobans

The 2025 budget reflects Manitoba’s intention to stimulate economic growth, support affordable living, and invest in people and services. While major tax rates remain unchanged, the budget includes several measures with tangible benefits for households, small businesses, and key industries.

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