Personal Tax Credits

Non-Refundable Measures:

Refundable Measures:


Non-Refundable Measures

Non-Refundable Tax Credit Block

Tax Credit 2017
Amount
2018
Amount
Basic personal amount* $9,271 $9,382
Spouse or common-law partner amount $9,134 $9,134
Amount for eligible dependent $9,134 $9,134
Caregiver amount
- Income threshold
(Separate from and in addition to the Primary Caregiver Tax Credit)
$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) $2,564.10 $2,593.80
Employment Insurance premiums (maximum) $836.19 $858.22
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: 10.8%
Over $200: 17.4%
First $200: 10.8%
Over $200: 17.4%
Adoption Expenses Tax Credit (maximum) $10,000 $10,000
Manitoba's Fitness Tax Credit (children and young adults up to age 24)
$500
($1,000 if disabled)
$500
($1,000 if disabled)
Children's Arts and Cultural Activity Tax Credit
$500
($1,000 if disabled)
$500
($1,000 if disabled)

 

*Budget 2016 announced the indexing of the Basic Personal Amount (BPA) starting in 2017.Budget 2016 announced the indexing of the Basic Personal Amount (BPA) starting in 2017.

 

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Manitoba Family Tax Benefit

The sum of:

  • $2,065 basic amount;
  • $2,065 for a spouse, common-law partner, or eligible dependent, if claimed;
  • $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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Manitoba’s Fitness Tax Credit

Manitoba’s Fitness Tax Credit allows claims for fitness activities for children under 16, and young adults aged 16 through 24. The cost of up to $500 in eligible fitness activities may be claimed per child or young adult. For a child/young adult less than 18 years of age at the end of the year, the claim may be made by the child/young adult, or their parent. For a young adult 18 to 24 years of age at the end of the year, the claim may be made by the young adult, spouse or common law partner.

This credit provides an annual non-refundable benefit of up to $54 per child/young adult. An additional $54 credit for children and young adults with a disability may be available if at least $100 is spent for fitness activities, increasing the maximum credit to $108. The credit reduces Manitoba income tax otherwise payable in the tax year.

Eligible fitness expenses are the amounts of a fee paid for the cost of registration, or membership, of the individual in an eligible program of physical activity or membership in an eligible organization. For the purposes of this tax credit, the cost may include those in respect of administration, instruction, rental of required facilities, and uniforms and equipment (that are not available to be acquired by a participant in the program for an amount less than their fair market value). Eligible costs do not include accommodation, travel, food or beverages.

An "eligible program of physical activity" means a program of physical activity that is not part of a school's curriculum and is:

  1. a weekly program of a duration of eight or more consecutive weeks in which all or substantially all of the activities include a significant amount of physical activity;
  2. a program of a duration of five or more consecutive days in which more than 50% of the daily activities include a significant amount of physical activity; or
  3. a program of a duration of eight or more consecutive weeks offered to children or young adults by an organization in circumstances where a participant may select from a variety of activities offered as part of the program and
    1. at least 50% of those activities include a significant amount of physical activity, or
    2. at least 50% of the time scheduled for those activities offered is for activities that include a significant amount of physical activity.

Physical activity means a supervised activity suitable for children or young adults (other than an activity where a child or young adult rides on or in a motorized vehicle as an essential component of that activity) that contributes to cardio-respiratory endurance and to one or more of muscular strength, muscular endurance, flexibility, or balance. For greater certainty, horseback riding is an activity that is deemed to meet the requirements. In respect of children and young adults with a disability, physical activity is that which results in movement and in an observable expenditure of energy in a recreational context.

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Children's Arts and Cultural Activity Tax Credit

This Manitoba Children's Arts and Cultural Activity Tax Credit provides parents of children under 16 with a non-refundable benefit of up to $54 for children's participation in eligible non-fitness activities.  The cost of up to $500 of elegible expenses per child may be claimed for participation in eligible non-fitness activities, including artistic, cultural, recreational or developmental actvities.  An additional $54 credit for children with a disability under the age 18, may be available if at least $100 is spent on elgible activities, increasing the maximum credit to $108.

"Artistic, cultural, recreational or developmental activity" means a supervised activity (other than a physical activity), including activity adapted for children with a disability, that is suitable for children and intended to contribute to a child's ability to develop creative skills or expertise, acquire and apply knowledge, or improve dexterity or coordination, in an artistic or cultural discipline including literary arts, visual arts, performing arts, music, media, languages, customs, heritage, provides a substantial focus on wilderness and the natural environment, assists with the development and use of intellectual skills, includes structured interaction among children where supervisors teach or assist children to develop interpersonal skills, or provides enrichment or tutoring in academic subjects.

Expenses in respect of a child for a taxation year means the amount of a fee for registration in a program or membership in an organization that includes the cost of administration, instruction, rental of required facilities, and uniforms and equipment (that are not available to be acquired by a participant in the program for an amount less than their fair market value at the time). Expenses do not include the cost of accommodation, travel, food or beverages.

An eligible program is:

  1. a weekly program of a duration of eight or more consecutive weeks in which all or substantially all the activities include a significant amount of artistic, cultural, recreational or developmental activity;
  2. a program of a duration of five or more consecutive days in which more than 50% of the daily activities include a significant amount of artistic, cultural, recreational or developmental activity
  3. a program of a duration of eight or more consecutive weeks, offered to children by an organization in circumstances where a participant may select from a variety of activities offered as part of the program and
    1. at least 50% of those activities include a significant amount of artistic, cultural, recreational or developmental activity, or
    2. at least 50% of the time scheduled for those activities is for activities that include a significant amount of artistic, cultural, recreational or developmental activity.

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Political Contributions Tax Credit

A taxpayer who contributes to a recognized provincial political party or candidate for election to the Manitoba Legislature may claim this credit. For the 2017 and subsequent tax year, 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)   33.33% of the next $1,575 of contributions.

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Labour-Sponsored Funds Tax Credit

Labour-Sponsored Funds Tax Credit

A taxpayer who invests in a registered 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 $1,800 for corporations registered under The Labour-Sponsored Venture Capital Corporations Act.

NOTICE TO TAXPAYERS: Budget 2018 announced that The Labour-Sponsored Funds Tax Credit is eliminated for shares acquired after 2018. This budget measure will not be implemented. Approved shares acquired after 2018 continue to be eligible for the credit.

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Mineral Exploration Tax Credit

A taxpayer who invests in flow-through shares of qualifying mineral exploration companies before April 1, 2021 may claim this credit. The tax credit that may be claimed by a taxpayer is equal to 30% of qualifying investments.

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Community Enterprise Development Tax Credit - for individuals

The Community Enterprise Development Tax Credit is intended to encourage Manitoba-resident investors to invest in specific community enterprises or in community development investment pools in their communities. The aim is to assist community-based enterprise development projects in raising local equity capital. Individual investors have the option of acquiring eligible shares through their registered retirement savings plan or tax free savings account.

With respect to eligible shares issued before 2015:

  • the tax credit rate is 30%.
  • The maximum credit that an individual investor can earn in a year is $9,000, based on a maximum $30,000 eligible investment.
  • the maximum eligible shares an approved company can issue under the program is $1 million.
  • the tax credit is non-refundable. 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 Community Enterprise Development Tax Credit has been extended to 2020.  Effective for eligible shares issued after June 12, 2014:

  • the tax credit rate is 45%.
  • the maximum credit that an individual investor can earn in a year is $27,000, based on a maximum $60,000 eligible investment.
  • the maximum eligible shares an approved company can issue under the program is $3 million.
  • the tax credit (with respect only to the shares issued after 2014) is fully refundable.
  • Commencing January 1, 2015, shares purchased in the first 60 days following the end of a given calendar year are eligible for the credit in that given calendar year. This allows a shareholder who makes an eligible investment through a qualifying trust that is a registered retirement savings plan, to elect retroactively to claim the tax credit in the same taxation year as the deduction for the plan contribution. This means, for example, that eligible shares purchased after December 31, 2015 and no later than March 1, 2016 may be claimed for the purposes of this credit in either 2015 or 2016.

These measures are intended to allow more local investors to promote the creation of good jobs at the community level by participating as owners in their regional enterprises. This includes lower-income investors and small businesses benefiting from Manitoba’s 0% corporate income tax rate.

For more information, contact:

Kristine Seier
CED Tax Credit Program
Manitoba Growth, Enterprise and Trade
Suite 1010 - 259 Portage Avenue
Winnipeg Manitoba R3B 3P4
Phone: 204-945-2770
Fax: 204-945-1193
E-mail: kristine.seier@gov.mb.ca

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Small Business Venture Capital Tax Credit - for individuals (formerly the Community Enterprise Investment Tax Credit)

Budget 2018 removes the $15 million revenue cap on the size of an eligible corporation and lowers the investment minimum by a shareholder from $20,000 to $10,000.

The Small Business Venture Capital Tax Credit promotes, among Manitoba-resident individuals and companies, the acquisition of equity capital in emerging enterprises that require larger amounts of capital than community ownership can provide. The tax credit is non-refundable and offsets Manitoba income tax otherwise payable. Credits earned in a year but unused can be carried back three years or carried forward ten years to offset Manitoba income tax in any of those years.

Eligible shares must be acquired directly by the investor. The minimum investment by an investor is $20,000 prior to March 12, 2018 and $10,000 effective March 12, 2018. The maximum investment an investor can make in a qualifying corporation is $450,000. The minimum issuance by an approved qualifying corporation is $100,000. The maximum tax savings claimable under the tax credit in a year is $10 million.

With respect to eligible shares issued before June 12, 2014:

  • the tax credit rate is 30%.
  • the maximum annual tax credit claimable by an investor is $45,000.
  • an existing shareholder who has less than 10% equity in a company, is eligible to purchase tax-creditable shares.
  • The maximum tax credit earned by an investor when investing in a company is $135,000.

With respect to eligible shares issued on or after June 12, 2014:

  • the tax credit rate is 45%;
  • the maximum annual tax credit claimable by an investor is $67,500.
  • the lifetime limit in tax creditable shares an approved corporation can issue is doubled from $5 million to $10 million;
  • an existing shareholder who has less than 35% equity in a company is eligible to purchase tax creditable shares.
  • As a result of the above changes, the maximum tax credit earned by an investor when investing in a company is $202,500.

With respect to eligible shares issued on or after May 1, 2015:

  • the definition of eligible small business corporation has been broadened to include corporations with a maximum number of 100 employees (up from 50), consistent with Industry Canada’s definition of small business; and
  • the list of ineligible activities has been amended so that businesses engaged in non-traditional farming ventures and brew pubs now become eligible.

For more information, contact:

Enterprise Branch
Growth, Enterprise and Trade
Suite 1010 – 259 Portage Avenue
Winnipeg, MB  R3B 3P4
Phone: 204-945-2770
Fax: 204-945-1193
Email: Kristal.Benton@gov.mb.ca

 

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Tuition Fee Income Tax Rebate

If you graduated with a degree, diploma, or certificate from a post-secondary institution recognized by the Canada Revenue Agency in Manitoba or elsewhere after 2006 and if you now work and pay taxes in Manitoba, you can benefit from the Tuition Fee Income Tax Rebate. Effective for the 2017 tax year, the annual cap an individual graduate can claim for this rebate is the lesser of Manitoba income tax payable, 10% of eligible tuition fees, or $500. The Rebate is fully eliminated for the 2018 tax year at which time no rebate credits will be claimable.

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Volunteer Firefighter and Search & Rescue Tax Credits

Starting in 2015, Manitobans who perform at least 200 hours of combined volunteer firefighting and volunteer search and rescue services (ground, air, and marine) in a year are eligible to claim a 10.8% non-refundable tax credit on an amount of $3,000. The maximum annual benefit is $324.

For more information, please contact the Manitoba Tax Assistance Office.

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Refundable Measures

Tuition Fee Income Tax Rebate Advance

Students residing in Manitoba and attending a post-secondary institution are able to claim a Tuition Fee Income Tax Rebate Advance in the form of a refundable 5% tax credit on tuition and ancillary fees paid in relation to a school term that ended after November 2010 and begins before May 2017. The tax credit is claimable by a student even if the federal and provincial tuition and education amounts are transferred to a parent or spouse. There is an annual credit cap of $500 and a lifetime cap of $5,000 under the Advance. Amounts claimed as an advance will reduce the Manitoba Tuition Fee Income Tax Rebate earned following graduation. Where an individual is claiming a Rebate in a given year, they are not eligible to claim the Advance.

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Fertility Treatment Tax Credit

The Fertility Treatment Tax Credit is a refundable personal income tax credit equal to 40% of fertility treatment fees paid to a Manitoba licensed medical practitioner or fertility treatment clinic, and for related prescription drugs, net of any reimbursements such as private health care coverage, related to the treatment of a Manitoba resident. Up to $20,000 in eligible medical expenses, as defined under federal income tax rules, can be claimed for a maximum credit of $8,000. The credit can be claimed by either spouse or partner, but not split between spouses or partners. Reversals of previous elective sterilization procedures (vasectomies, tubal ligations) do not qualify.

Frequently Asked Questions About the Fertility Treatment Tax Credit

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Education Property Tax Credit

 

Budget 2018 announced that, effective for 2019, the calculation of the Manitoba Education Property Tax Credit will be based on school taxes and the $250 deductible will be eliminated. The Seniors' Education Property Tax Credit would also be calculated on the school tax portion.

Effective for 2019, the Manitoba Education Property Tax Credit is equal to the lesser of:

  1. occupancy costs, calculated as the sum of:
    1. 20% of total rental payments; and
    2. school taxes paid
    and
  2. for
    1. taxpayers age 65 and over:
      [$950 in 2011, $1,025 in 2012, $1,100 in 2013 and subsequent years]
      MINUS 1% of family income to a minimum credit of $700
    2. all other taxpayers:
      $700

 

Prior to 2019, the Manitoba Education Property Tax Credit is equal to the lesser of:

  1. occupancy costs, calculated as the sum of:
    1. 20% of total rental payments
    2. net property tax paid
      MINUS $250
    and
  2. for
    1. taxpayers age 65 and over;
      [$950 in 2011, $1,025 in 2012, $1,100 in 2013 and subsequent years]
      MINUS 1% of family income to a minimum credit of $700
    2. all other taxpayers:
      $700

 

For homeowners, the credit is usually delivered as an offset to property taxes on the municipal government property tax statement. All others claim it on their income tax return for the year. Only one Education Property Tax Credit may be claimed per dwelling.

For more information

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Homeowner's School Tax Assistance

The Manitoba Homeowner's School Tax Assistance is claimable by a taxpayer who is 55 years of age or over and is equal to the lesser of:

  • $175 minus 2% of family income in excess of $15,100;
  • 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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Seniors' School Tax Rebate

New for 2016:

The Seniors' School Tax Rebate provides savings for eligible Manitobans age 65 or older who own their own home or are responsible for the payment of school tax on their principal residence. For the 2016 and subsequent property tax years, the maximum Rebate limit of $470 for eligible seniors is retained.

The Rebate is now calculated on net school taxes paid after the Basic and Seniors' Education Property Tax Credits (EPTC) are taken into account. In addition, the Rebate is reduced by 2.0% of net family income over $40,000.

Eligible seniors below the $40,000 income-tested threshold are eligible for a full Rebate, depending on net school tax paid. Senior households with a family net income of $63,500 and over no longer receive the Rebate.

For more information, go to the SSTR page.

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Personal Tax Credit

The maximum amount which can be claimed is equal to the sum of:

  • $195 basic credit;
  • $195 credit for spouse if claimed;
  • $195 equivalent-to-spouse credit;
  • $113 age credit if the taxpayer is 65 years of age or over;
  • $113 age credit for spouse if 65 years of age or over and if claimed;
  • $113 disability credit for self;
  • $113 disability credit for spouse if claimed;
  • $113 disability credit for dependents other than a spouse;
  • $62 per disabled dependent claimed; and
  • $26 per dependent claimed 18 years of age or under

     minus

     1% of family net income.

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Primary Caregiver Tax Credit

Manitobans who act as a primary caregiver for a family member, neighbour, or friend may be eligible for a refundable income tax credit.

Budget 2018 announced that, effective immediately, the process for claiming the Primary Caregiver Tax Credit will be simplified. The requirement to complete an application for pre-approved by the Regional Health Authorities or Manitoba Families is eliminated. Caregivers will now only be required to complete a Registration Form, submit a copy of the form to Manitoba Finance, and continue to claim the credit on the income tax return. Individual caregivers who applied to Manitoba Health or Families between January 1, 2018 and March 12, 2018 and were approved will have their forms forwarded to Manitoba Finance for registration.

Budget 2018 also implemented a flat $1,400 annual credit available to all caregivers. The requirement to provide a minimum 90-days of care before eligibility commences remains in place.

Please find the eligibility requirements and procedure for registration, including the Registration Form, on the Primary Caregiver Tax Credit page at www.gov.mb.ca/finance/tao/caregiver.html.

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Odour Control Tax Credit - for individual farmers

Individuals carrying on the business of farming in Manitoba either as a sole proprietor or as a general partner in a partnership may earn a 10% tax credit for eligible investments in capital property that significantly prevent, reduce, or eliminate nuisance odours from organic waste.

For qualifying property acquired after December 31, 2012 and before April 12th, 2017, this credit is fully refundable to agricultural producers.

Before 2013, the credit first had to be used to reduce Manitoba taxes; any remaining credit could then be refunded, up to an amount equal to net property tax on farmland. Any unused amounts could be carried forward for 10 years or carried back for the three previous years.

Please see additional details on the corporate tax credits page.

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Nutrient Management Tax Credit - for individual farmers

Unincorporated individuals resident in Manitoba and engaged in farming, as well as agricultural operations owned by a partnership, may claim this credit for eligible expenditures on or before April 11th, 2017.

Please see additional details under corporation income tax credits.

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Paid Work Experience Tax Credits (PWETC) - for unincorporated employers (formerly Co-op Education and Apprenticeship Tax Credits)

The Paid Work Experience family of tax credits provides qualified employers with a percentage of the wages and salaries paid to certain types of trainee employees and recent graduates working in Manitoba, net of other government funding for that remuneration.

Eligibility has been expanded to include employers who hire a student in a wide range of registered high school vocational programs that are not connected with the apprenticeship system. These would include programs in areas such as health care, child care, business and hospitality.

Unincorporated employers can claim the refundable credit on their individual income tax return in the tax year in which it is earned. For more information, including links and contacts, go to the PWETC section on the corporate tax credits page.

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Green Energy Equipment Tax Credit - for property owners

Property owners who install a geothermal heat pump system or a solar thermal energy system may receive a tax credit on component equipment and on certain capital costs of installation.

For details, please go to the Green Energy Equipment Tax Credit page.

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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.