An Overview of the Education Property Tax Credit Program

What is it?

If you are a Manitoba resident who pays more than $250 of property tax in a year, you are entitled to a Manitoba Education Property Tax Credit (EPTC). This is true whether you are a homeowner who pays property tax directly, or a tenant who pays property tax indirectly through your rent.

The EPTC is provided by the Province of Manitoba to help offset the property taxes Manitobans pay to support our public school system.

The basic credit for 2007 is $525 and $600 for 2008. If your income is below a defined level, or you are a senior, you may qualify for an additional amount. (See below for details.)

How do I get it?

There are three ways to claim the EPTC if you are entitled to receive it.

1. Automatically:  The vast majority of homeowners automatically receive the basic credit as a reduction on their municipal property tax bills. (Note that tenants do not receive the EPTC automatically - see point 3 below.) When received as a reduction on the property tax bill, the credit is referred to as the EPTC Advance.
   
   
2. By application: In a few cases, homeowners may not receive the EPTC Advance automatically. This may be the case if you have only recently moved into your house. If the EPTC Advance is not on your property tax bill, and you have lived in the residence since at least January 1 of the current year, you can submit an application until November 15 for the reduction prior to the time when the property taxes are due. Upon approval of your application, you will be able to pay your current property taxes minus the EPTC Advance. After November 15, you may claim your credit on your income tax return.
   
   
3. On your income tax return:  The EPTC can be claimed on the Manitoba portion of you income tax return. This is the only way for tenants to receive the credit. Homeowners may also use this method if they did not receive the credit through methods 1 or 2. This is also the method for claiming additional amounts if your income is below the defined level, or you are a senior.
   

What are the rules?

1. Threshold:  In order to receive this credit, both homeowners and tenants are required to pay the first $250 of property tax or (in the case of tenants) occupancy costs. The credit is then calculated on any amount above this threshold.
   
   
2. Additional amount for those on lower incomes:  For 2007, the first $525 of the credit is not income tested. If your income is less than $15,000*, you may be eligible for an EPTC of up to $675. Whether you are a homeowner or a tenant, you must claim this additional amount on your income tax return. You must meet the following eligibility rules:
   
   
   • You were 16 or older at the end of the year;
     
     
   • You must have been resident in Manitoba on the last day of the taxation year;
     
     
   • No other person may make a claim for the same residence;
     
     
   • No other person is claiming you as a dependant for income tax purposes.
     
     
3. Additional amount for seniors:  For 2007, if you are a senior citizen, and your income is no higher than $27,500*, you may be eligible for an EPTC of up to $800. Whether you are a homeowner or a tenant, you must claim this additional amount on your income tax return. You must meet the following eligibility rules:

• You must be age 65 or older;

• You must have been resident in Manitoba on the last day of the taxation year;

• No other person may make a claim for the same residence;

• No other person is claiming you as a dependant for income tax purposes.

*Basic EPTC credit increased to $600 for 2008 resulting in the lowering of the income-tested thresholds to $7,500 for non-seniors and $20,000 for seniors.

For further information, click here to view detailed program rules on the web site of the Canada Revenue Agency.