How the new year will affect your pocketbook

The arrival of 2026 will herald changes to rates and taxes for Manitobans.

A four per cent Manitoba Hydro rate increase takes effect on Jan. 1. The interim rate hike was announced Tuesday by the Public Utilities Board in response to the Crown utility’s drought-related losses and its need to maintain, upgrade and expand the power grid.

“It is an understandable response from Hydro’s regulator to send a message that the drought is being taken seriously,” the Consumers Coalition said in an email Wednesday.

A four per cent rate increase in hydro rates will be challenging for many consumers who have to make difficult choices alongside the rising cost of other essentials, said the coalition that represents Manitoba Harvest, the Aboriginal Centre of Winnipeg, the Manitoba branch of the Consumers Association of Canada, and the Manitoba Seniors Equity Action Coalition.

“While an understandable response, the Consumers Coalition had recommended a lower rate increase because Hydro has failed to show it is making difficult choices in the face of drought,” it said.

“Hydro’s costs continue to escalate at rates well above the rate of inflation and our clients strongly believe Hydro must examine its own costs before seeking increases from its customers.”

For tenants, the Manitoba government has set the rent increase guideline at 1.8 per cent in 2026.

The province uses a formula tied to the consumer price index to determine the coming year’s rent increase guideline that’s announced every April. The increase guideline applies to most residential rental properties, including apartments, but does not apply to units that rent for $1,670 or more per month, and various types of social housing.

Tenants must receive written notice of a rent increase at least three months before the increase takes effect. For a Jan. 1 rent increase to take effect, tenants must have received notice by Sept. 30, for instance.

A number of tax changes in 2026 were outlined in the provincial budget.

A payroll tax cut takes effect Jan. 1. Annual thresholds will be adjusted where businesses with payrolls at or under $2.5 million will be tax-exempt.

The payroll threshold below which businesses pay a reduced effective rate will increase to $5 million from $4.5 million.

The tax credit for homeowners increases to $1,600 from $1,500. The tax credit replaced the school tax rebate and education property tax credit.

The maximum tax credit for renters increases to $625 from $575, with a top-up for seniors rising to $357 from $328.

When provincial campgrounds open in the new year, expect to pay more for yurts, cabins and some other types of campsites. The nightly fee for a yurt is set to rise to $65 from $56. Fees for a range of cabins are increasing as well. A four-bed cabin in Camp Morton Provincial Park is to go up to $85 a night from a little over $70.

fpcity@freepress.mb.ca