Homeowners Affordability Tax Credit
For the 2025 tax year, the Education Property Tax Credit has been replaced with a new $1,500 Homeowners Affordability Tax Credit.
Frequently Asked Questions – New Homeowners Affordability Tax Credit
What changes are being made to school tax rebates and credits for the 2025 tax year?
There are two key changes:
- The Education Property Tax Credit (EPTC) is being replaced with the Homeowners Affordability Tax Credit (HATC) and is being increased to a maximum of $1,500. More details are provided in the following questions.
- The School Tax Rebate, which provided a 50% rebate on school taxes for residential and farm properties, and a 10% rebate on school taxes for other properties, is being eliminated for all properties except farm properties. Farm properties will continue to receive the 50% rebate.
- There is no additional seniors credit as part of the HATC, but the Seniors School Tax Rebate continues to be available (more information below).
When will the changes be implemented?
The changes are in effect as of the beginning of 2025.
Will the HATC apply to principal residences only?
Yes, HATC will apply to principal residences only. It does not apply to any other properties (rental properties, secondary residences/cottages, commercial properties, etc.).
Am I eligible for the HATC as a renter?
No, as a renter, you are not eligible for the HATC. However, you may claim the Renters Tax Credit based on the duration and costs of rent.
How do I receive the HATC on my property tax statement?
Properties that received the EPTC on their 2024 property tax statement should automatically receive the new HATC if there have not been any ownership changes. New homeowners have to designate their principal residence with their municipality in order to have the HATC applied to their property tax statement. Owners should contact their municipality for more information on how to do so. The deadline to do so varies by municipality and can be as early as March.
Note that condominium owners whose properties are individually assessed can receive the HATC on their property tax statement like other homeowners. Owners who live an assessed property that contains more than one dwelling unit (duplex, triplex, etc.) cannot receive the HATC on their property tax statement but can claim the HATC on their tax return.
Will property owners still have the option to claim the HATC when filing their income tax return, instead of taking it as an advance on their tax bill?
Yes. Homeowners that are eligible for the HATC may claim it on the income tax return if they did not not receive it on their property tax statement.
How will the HATC be calculated?
The amount of the HATC is the lesser of $1,500 and the gross school taxes on your principal residence.
What is happening with the Seniors School Tax rebate?
The Seniors School Tax rebate is being maintained at $235 minus 1.0% on family net annual income over $40,000 for principal residences only. This rebate is claimed on the personal income tax return.
How will the School Tax Rebate on farm properties be calculated?
There are no changes to how the School Tax Rebate on farm properties works. It will continue to be 50 per cent of gross school taxes and will continue to be applied directly on the property tax statement.
Is there still a School Tax Rebate for commercial property?
No, the School Tax Rebate for commercial property is no longer in effect for the 2025 and subsequent tax years.
How will these changes impact monthly property tax payment requirements, such as the City of Winnipeg’s Tax Instalment Payment Plan (TIPP)?
Monthly payment plans are determined by your local municipality based on your annual property tax requirements and how your municipality applies the HATC. Please reach out to your local municipality for information on your monthly property tax payment plans.