Tax Insights: 2024 Manitoba budget ─ Tax highlights

Issue 2024-12

In brief

On April 2, 2024, Manitoba’s Minister of Finance, Adrien Sala, presented the province’s budget. The budget does not change corporate or personal income tax rates, but does propose to:

• introduce a partially refundable tax credit for the construction of rental housing that begins after December 31, 2023
• phase out the basic personal amount for individuals with higher income, starting in 2025
• increase the retail sales tax registration threshold to $30,000, effective January 1, 2024
• replace the school tax rebate and education property tax credit with a new homeowners affordability tax credit, beginning the 2025 tax year

This Tax Insights discusses these and other tax initiatives outlined in the budget.

In detail

Business tax measures

Corporate income tax rates

Manitoba’s corporate income tax rates will remain as shown in the table below. The table also shows combined federal/Manitoba corporate tax rates.

Rental housing construction tax credit

Effective for the 2024 tax year, the budget introduces the rental housing construction tax credit, which will provide, for new rental units that start construction after December 31, 2023:

• $8,500 for new market-rate rental units
• $13,500 for rental units classified and maintained as affordable units for a period of at least 10 years

The credit will be fully refundable to non‑profit organizations. For other businesses:

• a refundable $8,500 credit is available for all units, plus
• a non-refundable $5,000 credit is available over 10 years for affordable units

Interactive digital media tax credit (IDMTC)

The budget:

• clarifies that expenses incurred for eligible IDMTC projects must be claimed in the same taxation year in which they were incurred
• establishes a new sub‑category of qualifying corporations under the IDMTC for Manitoba video game companies, which would be exempt from the requirement to apply for a Certificate of Eligibility before work starts on the project

Cultural industries printing tax credit

The budget extends the cultural industries printing tax credit by one year to December 31, 2025.

Data processing investment tax credits

The budget eliminates the data processing investment tax credits effective the 2025 tax year.  

Personal tax measures

Basic personal amount

Starting 2025, the budget proposes to phase out the basic personal amount (currently $15,780 for 2024) for individuals with net income between $200,000 and $400,000.

Personal income tax rates

The budget does not change Manitoba’s personal income tax rates. Top combined federal/Manitoba personal income tax rates are shown below. These rates apply to individuals with taxable income above $246,752 in 2024 ($235,675 in 2023).

Renters tax credit

For 2025, the budget increases the renters tax credit to a maximum of $575 (from $525) and the seniors top‑up to a maximum of $328 (from $300). Both amounts will continue to be increased annually throughout the term of the current government.

Fertility treatment tax credit

The budget doubles the maximum annual eligible expense for this 40% refundable tax credit in 2024, from $20,000 to $40,000, increasing the maximum annual tax credit amount from $8,000 to $16,000.

Sales tax measures

Retail sales tax

The budget:

• increases the threshold at which businesses must register for and collect retail sales tax in Manitoba, from $10,000 to $30,000 of taxable sales, effective January 1, 2024  
• eliminates sales tax commissions for any filing period ending after April 30, 2024

Gas tax

The gas tax cut that was implemented on January 1, 2024 is extended by three months to September 30, 2024. As a result, the gas tax rate will continue to be zero cents per litre on gasoline, diesel and marked gasoline until September 30, 2024.

Vaping tax

Manitoba will sign a Coordinated Vaping Product Taxation Agreement with the federal government. Expected to start on January 1, 2025, vaping substances sold in Manitoba will be subject to a provincial tax of:

• $1 per 2 millilitres (mL) for containers with less than 10 mL of vaping liquid
• $5 for the first 10 mL plus $1 for every additional 10 mL or fraction thereof for containers with more than 10 mL,

which will be administered by the federal government. The provincial tax is in addition to the federal excise duty on vaping products that has been in effect since October 1, 2022.

Other measures

School tax

Starting with the 2025 property tax year, the budget proposes to:

• replace the school tax rebate and education property tax credit with a new homeowners affordability tax credit of up to $1,500 on principal residences, which is expected to “effectively eliminate education property taxes for homes with assessed values of approximately $285,000 and below”
• simplify the school tax‑related credits for seniors by eliminating the education property tax credit seniors top‑up and school tax credit; however, the seniors school tax rebate will be maintained

The budget states that the school tax rebate for:

• farm properties will be maintained at 50%
• other commercial properties will be removed, because of the new education funding model that will be introduced to support the province’s education system and small businesses

Electric vehicle rebate

The budget introduces a rebate for electric vehicles (EVs) that cost under $70,000 and are less than four years old, of:

• up to $4,000 for a new EV or plug‑in hybrid  
• $2,500 for a used EV or plug‑in hybrid

The rebate will apply only once per vehicle and per purchaser/lessee, upon registration with Manitoba Public Insurance, and is available for purchases made between August 1, 2023 (retroactively) and March 31, 2026.

Auto insurance rates

Effective April 1, 2024, the budget decreases compulsory auto insurance premium rates by 5%.

Administrative measures

Provincially administered tax audit periods

Tax audit periods will be limited to a maximum of six years from the date of notification (except in the case of unremitted taxes or misrepresentation attributable to neglect, carelessness or willful default). A notice of assessment must be issued at the completion of all tax audits.

Tax clearance certificate and advance ruling fees

Effective May 1, 2024, the following fees are eliminated:

• $50 tax clearance certificate fee
• advance ruling fee for provincially administered tax statutes (currently $300, plus $60 per hour if preparation time exceeds five hours)

Oil and gas production tax record keeping

The four year record keeping requirement for operators under The Oil and Gas Production Tax Act is increased to six years.