Manitoba
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Personal Tax Credits

Manitoba Finance

Personal Tax Credits

Refundable Measures:


Non-Refundable Tax Credits

Tax Credit 2007
Amount		 2008
Amount
Basic personal amount $7,834 $8,034
Spouse or common-law partner amount
- Income threshold		 $6,482
$649		 $8,034
Amount for eligible dependent
- Income threshold		 $6,482
$649		 $8,034
Caregiver amount
- Income threshold		 $3,605
$12,312		 $3,605
$12,312
Amount for infirm dependents
- Income threshold		 $3,605
$5,115		 $3,605
$5,115
Canada Pension Plan contributions (maximum) $1,989.90 $2,049.30
Employment Insurance premiums (maximum) $720 $711
Age amount
- Income threshold
- Calculated amount is nil at:		 $3,728
$27,749
$52,602		 $3,728
$27,749
$52,602
Pension amount $1,000 $1,000
Disability amount $6,180 $6,180
Disability supplement
- Threshold for child & attendant care expenses		 $3,605
$2,112		 $3,605
$2,112
Full-time education amount $400/month $400/month
Part-time education amount $120/month $120/month
Transfer limit for tuition and education amounts $5,000 $5,000
Interest paid on student loans Federal amount claimed
Medical expense threshold $1,728 $1,728
Charitable donations First $200 at 10.9%
Over $200 at 17.4%
Adoption Expenses Tax Credit (maximum) $10,000 $10,000
Children's Fitness Tax Credit $500
$1,000 (if disabled)
Manitoba Family Tax Benefit (2008)
  • $2,065;
  • $2,065 for a spouse or equivalent-to-spouse if claimed on return;
  • $2,065 if the taxpayer is 65 years of age or over;
  • $2,065 if the taxpayer's spouse is 65 years of age or over and spouse's age amount was claimed on return;
  • $2,752 for each disability claim;
  • $2,752 for each disabled dependent 18 years of age or over if claimed; and
  • $2,752 for each dependent 18 years of age or under

     minus

  • 9% of the taxpayer's net income

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Family Tax Reduction

The Family Tax Reduction was introduced in 2000, effective January 1, 2001. The current reduction allows taxpayers to reduce their tax payable by the sum of:

  • $225;
  • $225 for a spouse or equivalent-to-spouse if claimed on return;
  • $225 if the taxpayer is 65 years of age or over;
  • $225 if the taxpayer's spouse is 65 years of age or over and spouse's age amount was claimed on return;
  • $300 for each disability claim;
  • $300 for each disabled dependent 18 years of age or over if claimed; and
  • $300 for each dependent 18 years of age or under

     minus

  • 1% of the taxpayer's adjusted net income.

Effective January 1, 2008, the Family Tax Reduction is folded into a renamed Manitoba Family Tax Benefit under the non-refundable tax credit block. One calculation step is removed, and the process is streamlined. This change does not affect eligibility.

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Political Contributions Tax Credit

The Manitoba Political Contributions Tax Credit was introduced in 1980. A taxpayer who contributes to a recognized provincial political party or candidate for election to the Manitoba Legislature may claim this credit. Currently, the tax credit that may be claimed by a taxpayer is equal to the lesser of:

a)   $650;  

or

b)   the sum of:
      i)    75% of the first $400 of contributions;
      ii)    50% of the next $350 of contributions; and
      iii)   33.3% of the next $525 of contributions.

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Labour-Sponsored Funds Tax Credit

The Manitoba Labour-Sponsored Funds Tax Credit was introduced in 1992. A taxpayer who invests in an approved labour-sponsored venture capital corporation any time during the taxation year or within 60 days after the end of the taxation year may claim this credit. The tax credit that may be claimed is equal to 15% of the investment, to a maximum annual credit of $750 for corporations registered under The Labour-Sponsored Venture Capital Corporations Act before July 1, 2006. If a corporation was first registered under the Act after June 30, 2006 the maximum annual credit claimable is $1,800.

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Equity Tax Credit

The Manitoba Equity Tax Credit was introduced in 1999, effective for investments made on or after April 30, 1999, and on or before June 30, 2008. A taxpayer who invests in shares listed on a stock exchange operating in the province may claim this credit. Currently the tax credit that may be claimed by a taxpayer is equal to 5% of the initial share price, to a maximum credit of $1,500. The credit may be claimed for a total of up to 36 months, with proration for cases where the shares are not held for a full year.

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Mineral Exploration Tax Credit

The Manitoba Mineral Exploration Tax Credit was introduced in 2002. A taxpayer who invests in eligible flow-through shares of qualifying mineral exploration companies may claim this credit. Currently, the tax credit that may be claimed by a taxpayer is equal to 10% of qualifying investments.

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Community Enterprise Development Tax Credit

The Community Enterprise Development Tax Credit is a non-refundable, 30% credit for resident investors in eligible community enterprise development projects. The maximum credit that an individual investor can earn in a year is $9,000, based on a maximum $30,000 eligible investment. Any credits earned but unused in a given year are available to be carried forward for up to ten years and carried back up to three years. The investment may be in specific community enterprises or in community development investment pools.

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Community Enterprise Investment Tax Credit

The Community Enterprise Investment Tax Credit is a non-refundable, 30% income tax credit for resident investors who acquire equity capital in emerging enterprises that require larger amounts of capital than community ownership can provide. The maximum credit that an individual investor can earn in a year is $135,000. The maximum amount of the tax credit deductible against Manitoba income tax is $45,000 per tax year. Any credits earned but unused in a given year are available, after 2007 and before 2011, to be carried forward for up to 10 years and carried back up to three years.

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Refundable Measures

Education Property Tax Credit

The Manitoba Education Property Tax Credit was introduced in 1972 as the Property Tax Credit and subsequently the name was changed in 2001. The tax credit is equal to the lesser of:

a)       occupancy costs, calculated as the sum of:

i)   20% of total rental payments;
ii)   net property taxes paid; and
iii)   homeowner's school tax assistance

minus  $250 

or

b)       the greater of:

i)  $675 ($800 for taxpayers 65 years of age or over) minus 1% of
    family income;  

or

ii)  $525 (2007), $600 (2008)


Only one Education Property Tax Credit may be claimed per dwelling.

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Personal Tax Credit

The Manitoba Cost of Living Tax Credit was introduced in 1974. Currently, the tax credit that may be claimed by a taxpayer is equal to the sum of:

  • $190 basic credit;
  • $190 credit for spouse if claimed;
  • $190 equivalent-to-spouse credit;
  • $110 age credit if the taxpayer is 65 years of age or over;
  • $110 age credit for spouse if 65 years of age or over and if claimed;
  • $110 disability credit for self;
  • $110 disability credit for spouse if claimed;
  • $110 disability credit for dependents other than a spouse;
  • $60 per disabled dependent claimed; and
  • $25 per dependent claimed 18 years of age or under

     minus

     1% of family net income.

For 2009, Personal Tax Credit amounts will increase approximately 2.6%.

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Homeowner's School Tax Assistance

The Manitoba Homeowner's School Tax Assistance was introduced in 1993. A taxpayer who is 55 years of age or over may receive this assistance. Currently, the tax assistance that may be received by a taxpayer is equal to the lesser of:

  • $175 minus 2% of family income in excess of $15,000;
  • school taxes paid minus $160; or
  • occupancy costs, 20% of total rental payments or net property taxes paid, in excess of the property tax credit.

Only one Homeowner's School Tax Assistance may be claimed per dwelling.

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Primary Caregiver Tax Credit

The Primary Caregiver Tax Credit is introduced, commencing in the 2009 tax year, to provide recognition and financial support to individuals who serve as volunteer primary care givers for more than three consecutive months. This program builds upon the Manitoba Home Care Program and is intended to help care-recipients remain independent as long as possible.

The primary caregiver may be a spouse, other relative, neighbour, or friend who provides care without remuneration to a Manitoba Home Care client.

The client must be assessed as requiring Care Levels 2, 3, or 4 while living at home. Examples include those with a disability (young or old), those receiving palliative care and other needing care or supervision for periods of more than three months.

After a three-month qualifying period, the refundable credit is $85 per month to a maximum $1,020 per year to the primary caregiver of each client. A caregiver may not earn the credit for more than three clients in a given month.

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Odour Control Tax Credit

Individuals carrying on the business of farming either as a sole proprietor or as a general partner in a partnership in Manitoba who incurred eligible expenditures may earn a 10% tax credit.

The credit must first be used to reduce Manitoba taxes, any remaining credit can then be refunded, up to an amount equal to your net property tax. Any unused amounts can be carried forward for 10 years or carried back for the 2 previous years.

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For more information on the Manitoba individual income tax system, contact the Manitoba Tax Assistance Office at 948-2115 or Toll-free 1-800-782-0771 or visit the Manitoba Tax Assistance Office Web site.