2026 Manitoba Budget Highlights
On March 24, 2026, Manitoba Minster of Finance, Adrien Sala, released the province’s budget for the 2026-2027 fiscal year. We have highlighted selected budget measures that affect Manitoba individuals and small businesses.
INDIVIDUALS
Personal Tax Rates
The budget did not propose any changes to personal income tax rates. Indexation of Manitoba’s tax bracket thresholds to inflation continues to be paused for the 2026 tax year.
Provincial Income Tax Brackets and Tax Rates
| 2025 Taxable Income | 2026 Taxable Income | Tax Rate |
|---|---|---|
| $0 to $47,000 | $0 to $47,000 | 10.80% |
| $47,000 to $100,000 | $47,000 to $100,000 | 12.75% |
| Over $100,000 | Over $100,000 | 17.40% |
Top Combined Manitoba and Federal Rates – 2026
| Other/Interest/ Salary/Pension | Capital Gains | Eligible Canadian Dividends | Non-eligible Canadian Dividends |
|---|---|---|---|
| 50.40% | 25.20% | 37.78% | 46.67% |
Top rates apply to taxable income over $400,000 based on known federal and provincial rates as of March 24, 2026.
Personal Tax Measures
- Budget 2026 raises the provincial tax credit for renters by $50 to $625 for the 2026 tax year and $675 for the 2027 tax year. This is part of a commitment to eventually restore the credit to its previous level of $700. The government will also be pursuing options to allow renters to receive their benefit faster than via their tax return.
- Budget 2026 will remove the Manitoba Retail Sales Tax (RST) on all food sold in grocery stores effective July 1, 2026. RST will continue to apply on beverages with alcohol content greater than one per cent, dietary supplements and taxable non-food items sold in grocery stores.
- The Homeowners Affordability Tax Credit will increase in 2026 to $1,600 (from $1,500) for the 2026 property tax year with a further increase to $1,700 for the 2027 property tax year.
BUSINESSES
The budget did not change any corporate income tax rates or the $500,000 small business income threshold.
Combined Corporate Tax Rates
| Income Type | Provincial | Federal | Combined Rates Calendar 2026 |
|---|---|---|---|
| General corporate | 12.00% | 15.00% | 27.00% |
| Small business – to $500,000 | 0.00% | 9.00% | 9.00% |
| CCPC* investment | 12.00% | 38.67% | 50.67% |
| Non-CCPC* investment income | 12.00% | 15.00% | 27.00% |
| Manufacturing and processing income | 12.00% | 15.00% | 27.00% |
*Canadian-controlled private corporation
Based on known federal and provincial rates as of March 24, 2026
Other Tax Measures
- Budget 2026 introduces legislative amendments to the Tax Administration and Miscellaneous Taxes Act in order to improve tax fairness and prevent the avoidance of land transfer tax through the use of certain legal structures in which legal and beneficial ownership of property are separated. These changes are planned to be in effect on January 1, 2027.
- Enhancements to the Film and Video Production Tax Credit will be made to establish a mandatory pre-certification process, reducing the potential for fraud and abuse as well as allowing for the inclusion of eligible non-resident labor on advanced certificates and improved administration.
- Improvements to the administration of Retail Sales Tax, including the requirement for all business registered to collect RST to file RST returns electronically effective January 1, 2028, and denying refunds where false information is provided.
Refer to the 2026 Manitoba Budget for further details.
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