Manitoba budget 2023‑2024

^{_{1  The rates represent calendar-year-end rates unless otherwise indicated.
2  The corporate income tax rates for manufacturers of qualifying zero-emission technology are reduced to 7.5% for eligible income otherwise subject to the 15% general corporate income tax rate or 4.5% for eligible income otherwise subject to the 9% small-business corporate income tax rate.
3  An additional tax applies to banks and life insurers at a rate of 1.5% on taxable income (subject to a $100 million exemption to be shared by group members), effective for taxation years ending after 7 April 2022 (prorated for taxation years straddling this effective date).}}

Other business tax measures

The minister also proposed changes to the following tax credits:

• The Mineral Exploration Tax Credit, previously set to expire on 31 December 2023, has been made permanent;
• The Green Energy Equipment Tax Credit, previously set to expire on 30 June 2023, has been made permanent; and
• Effective 1 April 2023, eligible labour expenditures for the Interactive Digital Media Tax Credit have been expanded to allow for more forms of employee compensation and incentives.

Personal tax

Personal income tax rates

The budget does not include any changes to personal income tax rates; however, the budget does include changes to the tax bracket thresholds. Manitoba’s tax bracket thresholds will increase to $47,000 and $100,000 effective for the 2024 tax year, with a return to annual indexing in 2025.

The 2023 and 2024 Manitoba personal income tax rates are summarized in Table B.

Table B – 2023 and 2024 Manitoba personal income tax rates

For taxable income in excess of $106,717, the 2023 combined federal – Manitoba personal income tax rates are outlined in Table C.

Table C – Combined 2023 federal and Manitoba personal income tax rates

_{^{1    The rate on capital gains is one-half the ordinary income tax rate.
2  The federal basic personal amount comprises two elements: the base amount ($13,521 for 2023) and an additional amount ($1,479 for 2023). The additional amount is reduced for individuals with net income in excess of $165,430 and is fully eliminated for individuals with net income in excess of $235,675. Consequently, the additional amount is clawed back on net income in excess of $165,430 until the additional tax credit of $222 is eliminated; this results in additional federal income tax (e.g., 0.32% on ordinary income) on net income between $165,431 and $235,675.}}

Personal tax credits

The budget proposes to increase the basic personal amount from $10,855 to $15,000 for 2023.

Other tax measures

Health and Post-Secondary Education Tax Levy

• Effective 1 January 2024, the exemption threshold for the Health and Post-Secondary Education Tax Levy is increased from $2 million to $2.25 million of annual remuneration. In addition, the threshold below which employers pay a reduced effective rate is increased from $4 million to $4.5 million.

Property tax

• As previously announced, the Education Property Tax Rebate will increase from 37.5 percent to 50 per cent for 2023 for residential and farm properties, saving the average homeowner $774 in 2023.

Administrative tax measures

• Mineral Exploration Tax Credit - Amendments will be made to the Manitoba Income Tax Act to align with changes made to the federal Income Tax Act to ensure critical mineral exploration expenses continue to be eligible for the Mineral Exploration Tax Credit.
• Provincial administered tax refunds - Alignment of the tax refund limit period with the audit period for provincially-administered taxes for tax audits that result in a refund.

Learn more

For more information, please contact your EY or EY Law advisor or one of the following professionals:

Jason Burbank
+1 204 933 0240| jason.a.burbank@ca.ey.com

Matthew Lapka
+1 204 954 5541 | matthew.lapka@ca.ey.com

Nina Pekach
+1 204 933 0279 | nina.pekach@ca.ey.com

Budget information: For up-to-date information on the federal, provincial and territorial budgets, visit ey.com/ca/Budget.