Tax Measures

2023

Fiscal Summary of Measures

2023/24

Full Year

millions of dollars

millions of dollars

Personal Measures

Basic Personal Amount - increased

-314.7

-326.1

Tax Bracket Thresholds - increased

-40.0

-160.0

-354.7

-486.1

Business Measures

Health and Post-Secondary Education Tax Levy - enhanced

-2.3

-9.0

Interactive Digital Media Tax Credit - enhanced

-0.2

-0.3

-2.5

-9.3

Tax Credit Extensions

Mineral Exploration Tax Credit - made permanent

-

-

Green Energy Equipment Tax Credit - made permanent

-

-

-

-

Total Fiscal Impact

-357.2

-495.4

A negative amount reflects tax savings for Manitobans.

Personal Measures

Basic Personal Amount 2023/24

Fiscal Impact: $-314.7-million

The Basic Personal Amount is a non-refundable tax credit every Manitoba resident is entitled to claim on their income tax return. Budget 2016 announced indexing of the Basic Personal Amount and personal income tax brackets starting in 2017.

Budget 2023 announces the largest ever enhancement to the Basic Personal Amount. Effective for the 2023 tax year, the Basic Personal Amount will be increased to $15,000.

The total cost of this measure and the savings to Manitoba taxpayers in 2023 will total $311-million, compared to the indexed amount of $10,855. Compared to the 2022 Basic Personal Amount of $10,145, the tax savings from the Basic Personal Amount in 2023 will be up to $524 more for an individual or up to $1,048 more for a two-income family.

This measure will remove an additional 47,400 taxpayers from the tax rolls in 2023. When combined with increases to the Basic Personal Amount under indexing since 2017, nearly 75,000 Manitobans will no longer be paying Manitoba income tax.

Year

Basic
Personal
Amount

Individual Taxpayer Savings 1

Incremental Taxpayer Savings 2

Taxes Saved by Manitobans (Cumulative)

Individuals no Longer Paying Tax (Cumulative)

2017

$9,271

$1,001

$15

$10M

2,150

2018

$9,382

$1,013

$27

$18M

3,900

2019

$9,626

$1,040

$53

$37M

7,700

2020

$9,838

$1,063

$76

$53M

11,000

2021

$9,936

$1,073

$87

$61M

12,530

2022

$10,145

$1,096

$109

$77M

15,780

2023

$15,000

$1,620

$634

$444M

74,260

1 Savings calculated as the basic personal amount times the lowest personal income tax rate of 10.8 per cent.

2 Savings for an individual due to increasing the Basic Personal Amount from its 2016 value of $9,134.

Tax Bracket Thresholds 2023/24

Fiscal Impact: $-40-million

Effective for the 2024 tax year, Manitoba’s tax bracket thresholds will increase to $47,000 and $100,000, with a return to annual indexing in 2025. These are increases of $10,158 (28 per cent) and $20,375 (26 per cent) compared to the 2023 thresholds of $36,842 and $79,625 , and will result in an estimated total tax savings of $160-million in the 2024 tax year compared to what would have occurred under indexing.

Tax Rate

2023 Taxable Income

2024 Taxable Income

10.80%

first $36,842

first $47,000

12.75%

over $36,842
up to $79,625

over $47,000
up to $100,000

17.40%

over $79,625

over $100,000

Combining the changes to the Basic Personal Amount and tax brackets, taxpayers will save up to an additional $1,399 in 2024 with these threshold improvements versus savings under indexing alone.

As shown in the table below, the savings to individual taxpayers with taxable income in the range of $30,000 to $150,000 will range from $470 to $1,399 versus what would have been the case had indexing proceeded on its forecasted course.

2024 Tax Savings from Budget 2023 Measures

$30,000

$50,000

$100,000

$150,000

Taxes in 2024 with indexing but without changes announced in Budget 2023

$2,010

$4,392

$11,533

$20,233

MB Taxes in 2024 including changes announced in Budget 2023

$1,541

$3,759

$10,134

$18,834

Budget 2023 Tax Savings

$470

$633

$1,399

$1,399

Per cent Reduction

23%

14%

12%

7%

Business Measures

Health and Post-Secondary Education Tax Levy 2023/24

Fiscal Impact: -$2.3-million

Effective Jan. 1, 2024, the exemption threshold is raised from $2-million to $2.25-million of annual remuneration. In addition, the threshold below which businesses pay a reduced effective rate is raised from $4-million to $4.5-million.

Increases to the thresholds primarily benefit construction, manufacturing, retailer, wholesaler, professional and restaurant sectors.

The new higher thresholds will benefit approximately 900 Manitoba employers, including exempting approximately 150 Manitoba employers from the tax entirely. These changes further build upon the increases to the levy thresholds announced in each of the last three Budgets. In 2020, the exemption threshold was $1.25-million and the threshold below which employers pay a reduced effective rate was $2.5-million, both of which had been in place since 2008.

In addition, if fiscal updates later in the year show better than expected revenue performance, the government will reduce the tax levy for 2024, from 4.3 per cent to 4.0 per cent on payroll between $2.25-million and $4.5-million and from 2.15 per cent to 2.0 per cent on total payroll if payroll exceeds $4.5-million. This will be the first reduction in 25 years in the tax rates and will set the stage for future reductions.

This rate reduction will benefit all 2,750 businesses paying the tax and result in a further annual tax savings of $35-million beginning in 2024. This would provide total incremental annual tax savings of $44-million beginning in 2024 when combined with the threshold adjustments.

This rate reduction will be confirmed prior to Jan. 1, 2024.

Health and Post-Secondary Education Tax Levy Changes since 2020

Year

Exemption
Threshold

Second
Threshold

2020

$1.25-million

$2.5-million

2021

$1.5-million

$3.0-million

2022

$1.75-million

$3.5-million

2023

$2.0-million

$4.0-million

2024

$2.25-million

$4.5-million

Interactive Digital Media Tax Credit 2023/24

Fiscal Impact: $-0.2-million

Effective Apr. 1, 2023, eligible expenditures for this tax credit will be expanded to allow for more flexible forms of employee compensation and incentives as eligible labour expenditures. This does not include labour expenditures such as bonuses tied to profits or revenues, stock options and signing bonuses, which will remain ineligible.

Extensions to Existing Tax Credits

The Mineral Exploration Tax Credit, scheduled to expire on Dec. 31, 2023, is made permanent. This credit supports Manitobans who invest in flow-through shares of qualifying mineral exploration companies engaged in mineral exploration in Manitoba and is equal to 30 per cent of investments in flow-through shares.

The Green Energy Equipment Tax Credit, scheduled to expire on Jun. 30, 2023, is made permanent. This credit supports the production and purchase of machinery and equipment used to generate renewable energy in Manitoba.

Administrative Tax Measures

Mineral Exploration Tax Credit

As a result of changes to the Canada Income Tax Act establishing a new Critical Mineral Exploration Tax Credit respecting critical minerals (which includes copper, nickel, lithium, cobalt, graphite, rare earth elements, scandium, titanium, gallium, vanadium, tellurium, magnesium, zinc, platinum group metal and uranium), minor amendments to Manitoba’s Income Tax Act are required to ensure that exploration expenses related to critical minerals continue to be eligible for Manitoba’s Mineral Exploration Tax Credit.

Provincially Administered Tax Refunds

The tax refund limit period for provincially-administered taxes will be extended for refunds that are the result of a tax audit to match the audit period.

Contacts for Further Information

Location A
Manitoba Tax Assistance Office

Manitoba Finance

Telephone 204-948-2115

Toll-free 1-800-782-0771

e-mail: tao@gov.mb.ca mailto:tao@gov.mb.ca

Location B
Compliance and Enforcement Division

Manitoba Finance

Telephone 204-945-5603

Toll-free 1-800-782-0318

e-mail: mbtax@gov.mb.ca

Location C
Economic Programs Branch

Manitoba Economic Development, Investment and Trade

Telephone 204-945-2475

e-mail: EcDevPrograms@gov.mb.ca

For further information on government programs, individuals can contact Manitoba Government Inquiry by calling 204-945-3744 in Winnipeg or toll-free 1-866-626-4862, or by e-mail at mgi@gov.mb.ca .

Comparison of 2023 Tax Rates

Comparison of 2023 Tax Rates

CAN

BC

AB

SK

MB

ON

QC

NB

NS

PE

NL

Personal Income Tax

Basic Personal
Amount ($)

15,000

11,981

21,003

17,661

15,000

11,865

17,183

12,458

11,481 A

12,000

10,382

Top Rate (%)

33.00

20.50

15.00

14.50

17.40

20.53 B

25.75

19.50

21.00

18.37 C

21.80

Health Care
Premiums ($)

900

Health and
Education Tax (%)

1.95 D

2.15 E

1.95 F

4.26 G

2.00 H

Corporation Income Tax (%)

Small

9.00

2.00

2.00

1.00 I

0.00

3.20

3.20

2.50

2.50

1.00

3.00

Large

15.00

12.00

8.00

12.00

12.00

11.50

11.50

14.00

14.00

16.00

15.00

Small business limit ($000)

500

500

500

600

500

500

500

500

500

500

500

Capital Tax on Banks (%)

-

-

4.00

6.00

-

-

5.00

4.00

5.00

6.00

Sales Tax (%)

5.00

7.00

-

6.00

7.00

8.00

9.98

10.00

10.00

10.00

10.00

Tobacco Tax
(˘ per cigarette)

14.545

32.50

27.50

29.00

30.00

18.48

18.90 J

25.52

27.52

29.52

32.50

Fuel Tax

Gasoline

(˘/L)

10.00

14.50

13.00 K

15.00

14.00

14.70 Q

19.20

10.87

15.50

8.47

14.50

Diesel

(˘/L)

4.00

15.00

13.00 K

15.00

14.00

14.30 Q

20.20

15.45

15.40

14.15

16.50

Carbon Levy

Gasoline

(˘/L)

LM

14.31 N

14.31

14.31

14.31

14.31

8.25 O

14.31 P

14.31

14.31

14.31

Diesel

(˘/L)

LM

17.38 N

17.38

17.38

17.38

17.38

9.72 O

17.38 P

17.38

17.38

17.38

A Nova Scotia’s BPA is reduced by 6% of taxable income in excess of $25,000 and under $75,000. It is $8,481 for persons with taxable income over $75,000 and over.

B,C Includes Surtax

D Employers with BC remuneration of $500,000 or less don’t pay employer health tax. Between $500,000.01 and $1.5 million pay the reduced tax amount of 2.925%. Employers with more than $1.5 million pay the tax on their total BC remuneration at 1.95%.

E Effective January 1, 2024, MB employers with total remuneration in a year of $2.25 million or less are exempted. MB employers with up to $4.5 million of remuneration pay 4.3% on the amount in excess of $2.25 million. Employers with more than $4.5 million pay the tax on their total MB remuneration at 2.15%. If fiscal updates later in 2023 show better than expected revenue performance, Manitoba will reduce the tax levy for 2024 from 4.3% to 4.0% on payroll between $2.25 million and $4.5 million and from 2.15% to 2.0% on total payroll if payroll exceeds $4.5 million.

F The ON Employer Health Tax rates vary from 0.98% on payroll less than $200,000, up to 1.95% for payroll in excess of $400,000.

G The QC Health Services Fund contribution rates vary from 1.25% to 4.26% dependent upon sector and total payroll. Employers, other than a public-sector employer, with total payroll less than $7.2 million are eligible for the reduced contribution rates.

H The NL Health and Post Secondary Education Tax, at a rate of 2%, is payable by employers whose annual remuneration that exceeds $1.3 million.

I Saskatchewan’s small business corporate income tax rate temporarily dropped from 2% to zero effective October 1, 2020. Beginning July 1, 2023, the small business tax rate will move to 1%. And on July 1, 2024, the small business tax rate will return to 2%.

J Quebec&aposs new rate in effect starting February 9, 2023, increasing from 14.90 cents per cigarette prior.

K Effective January 1, 2022, Alberta is adjusting their fuel tax rate quarterly based on the average price of West Texas Intermediate ("WTI").

If WTI is below $80 USD, the full 13 cents/litre rate applies. If WTI is between $80 USD and $84.99 USD the tax rate is 9 cents per litre.

If WTI is between $85 USD and $89.99 USD, the tax rate is 4.5 cents per litre. If the WTI is $90 USD or higher the tax rate is Nil. This relief measure is expected to remain in place until at least June 30, 2023.

L The federal government imposes a carbon pricing system in provincial jurisdictions that do not have a carbon pricing system that aligns with the federal benchmark. The federal government fuel charge applies in MB, AB, SK, ON, NS, NL and PE.

M Effective July 1, 2023 the federal carbon tax will apply to Newfoundland and Labrador, Nova Scotia and Price Edward Island.

N BC&aposs provincial rates follow the federal tax rates but the listed rates are estimated as BC has not published its rates for 2023 as of the date of this table.

O Quebec operates under a provincial Cap-and-Trade program. The figures listed in the table are estimated costs.

P Effective April 1, 2020 the federal government stopped applying their carbon pricing system in New Brunswick when the province started their own carbon emitting tax. The provincial rates align with the federal rates in order to meet the federal requirements.

Q Effective July 1, 2022 until December 31, 2023 the Ontario tax rate for gasoline and diesel will be reduced to 9 cents per litre.