Manitobans face some financial changes in 2025 tax year

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This article was published 08/01/2025 (618 days ago), so information in it may no longer be current.

Adjustments to provincial policies could affect Manitobans’ finances in the new year.

For the 2025 tax year, the basic personal amount — on which you do not pay provincial income tax — increases by $189 (to $15,969). This is reduced for people who earn a net income above $200,000 and eliminated for those with a net income greater than $400,000.

Here’s a list of other changes to be aware of:

Tax brackets: For 2025, provincial tax is 10.8 per cent for earnings up to $47,564 and 12.75 per cent for between $47,564.01 and $101,200. For earnings above $101,200, the tax is 17.4 per cent.

Property (education) taxes: A $1,500 maximum credit replaces the 50 per cent credit this year, resulting in savings for some and increased taxes for others. Starting Jan. 1, properties with provincial education taxes of $1,500 or less will see this portion of their tax bill eliminated.

Meanwhile, properties with provincial education taxes exceeding $3,000 will pay more provincial education taxes because the $1,500 credit has replaced what used to be a 50 per cent credit.

People who own property in Winnipeg can expect their monthly TIPP payments to rise by about 50 per cent starting Jan. 1 because the new $1,500 provincial education tax credit will be applied over 12 months this year. TIPP payments were artificially low from July to December 2024 because the old 50 per cent credit was not applied from January to June 2024.

Commercial property owners who had been receiving 10 per cent rebates are not eligible for the new credit.

Credit for renters; fuel tax: The credit for renters increases by $50 to $575. Meanwhile, the provincial gas tax returned Jan. 1 following a one-year absence; it is now 12.5 cents per litre.

Corporate taxes: There are no changes to the province’s corporate income tax rates or the Health and Post-Secondary Education Tax Levy, also known as the payroll tax.

As with last year, employers with total annual remuneration of $2.25 million or less are exempt from the payroll tax. For payrolls between $2.25 million and $4.5 million, a rate of 4.3 per cent applies to the amount exceeding $2.25 million. Meanwhile, for payrolls greater than $4.5 million, a rate of 2.15 per cent applies to the total.

“Very few” of these taxation changes impact Manitoba businesses, according to Chuck Davidson, Manitoba Chambers of Commerce president and CEO, which recently shared the changes with its members.

The concern the group consistently raises is with the payroll tax. The seventh edition of the Manitoba Prosperity Report — which looks at economic indicators to determine how the keystone province compares with B.C., Alberta, Saskatchewan and Ontario — notes Manitoba has the highest payroll tax rate amongst provinces measured in the report.

“The Manitoba Chambers of Commerce will continue to advocate for the elimination of the payroll tax, which has been identified by business leaders as the greatest impediment to economic competitiveness and growth in Manitoba,” the chambers stated on its website.

aaron.epp@freepress.mb.ca