The origins of the name Manitoba can be traced back to either the Algonquin Cree manitou-wapow or Ojibwe manidoobaa tribes. The meaning of the word translates to “the narrows of the Great Spirit”. This beautiful province has over 100,000 lakes, a great place for outdoor activities.
Manitoba uses a progressive income tax structure, with only three tax rates or brackets. The tax brackets increase each year, based on inflation. Visit the government of Manitoba’s Personal Income Tax page for yearly tax bracket rates.
Manitoba’s Tax Brackets for Tax Year 2021
Taxable Annual Income
|10.8%||on the first $33,723||$33,723|
|12.75%||on the next $39,164||over $33,723 up to $72,885|
|17.4%||on the portion over $72,885||over $72,885|
For 2020 tax rates, review this link from the Canadian Government.
How Manitoba’s Tax Brackets Work
Under the current tax on income method, tax for all provinces (except Québec) and territories is calculated the same way as federal tax. Form MB428 is used to calculate this provincial tax, as well as non-refundable tax credits.
Your taxable income represents your total income minus federal deductions like the RRSP deduction and child care expenses. Like its name implies, it is the amount on which you pay income tax.
There’s an allowable amount of income that you can earn before you must start paying taxes. That is called the “basic personal” or “personal amount.” For the 2021 tax year, the Federal Basic Personal Amount (BPA) is $13,808, while the MB amount is $9,936.
Income for determining your tax bracket is calculated by adding the sum of all income streams for the year, such as employment, self-employment, pension, saving plans, investments, benefits, and more totaled on Line 15000 – Total Income, then subtracting applicable credits and deductions. The result of this calculation, shown on Line 26000 – Taxable Income, is used to determine your tax brackets.
Manitoba has a tax system similar to other Canadian provinces. Many of the Manitoba provincial taxes and credits compliment similar credits at the federal level, but there are some unique credits for residents of Manitoba.
- Manitoba Education Property Tax Credit: Renters and homeowners may qualify for a maximum of $700 in tax savings under this credit, intended to offset property taxes. The credit can only be claimed once per dwelling. Learn more on how to claim this provincial credit on your taxes in this CRA link.
- Primary Caregiver Tax Credit: Manitobans who act as the primary caregiver for a family member or friend may be eligible for this refundable credit, up to$1,400. Note: This program requires pre-approval. Learn more on how to claim this provincial credit on your taxes in this CRA link.
- Seniors’ School Tax Rebate: If you are a senior over the age of 65, pay school taxes and have an income lower than $63,500, you may qualify for this tax rebate. For 2021, if eligible, you’ll receive a rebate up to $353.
- Fertility Treatment Tax Credit: Trying to have a baby? This credit will allow you to claim up to 40% of expenses incurred for the treatments/medications provided by a licensed medical practitioner or fertility treatment clinic in Manitoba. For more detailed information review this link from the CRA.
- Manitoba Child Benefit : In addition to the Federal CCB. This is credited to those in a lower income bracket, raising children.
- Green Energy Equipment Tax Credit: If you own property, you should consider installing a geothermal heat pump system, solar heating, gasification, or biomass fuel energy equipment before July 1, 2023 and receive a tax credit; depending on the equipment or systems you install, you can get up to 15% credit. This link from the CRA will explain the details.