For advisors in the family market, the biggest changes affecting familes are:

  • The increase in Basic Personal Amount (resulting in an annual tax savings of $109)
  • Carbon tax 

For advisors in the business market, the biggest change:

  • The increase in the amount of income eligible for the small business deduction from $450,000 to $500,000

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Manitoba Budget Infographic

Manitoba Budget Article

Manitoba Finance Minister, Cameron Friesen delivered the province’s 2018 budget update on March 12, 2018. The budget anticipates a surplus of $521 million for 2018 to 2019.

Corporate and personal tax rates remain unchanged.

The biggest changes are:

  • The increase in the amount of income eligible for the small business deduction.
  • The increase in Basic Personal Amount
  • Carbon tax

Corporation changes

Small Business Deduction Limit Increased

Although there were no announcements about changes to the province’s corporate tax rate, it does increase the small business income limit eligible from $450,000 to $500,0000 effective January 1, 2019.

Child Care Centre Development Tax Credit

A new refundable corporation income tax credit to encourage the creation of licensed child care centres in workplaces. The credit will be a total benefit of $10,000 per new infant/preschool space created, claimable over 5 years. (This is for corporations that are not primarily engaged in child care services.)

Small Business Venture Capital Tax Credit

The 45% investment tax credit is intended to promote the acquisition of equity capital in emerging enterprises that require larger amount of capital. Effective, March 12, 2018 the minimum investment is lowered  to $10,000 (from $20,000) and the elimination off the $15 million revenue cap on the size of an eligible corporation.

Personal tax changes

Basic Personal Amount

The Basic Personal Amount will be increased by $1,010 each year for 2019 and 2020 (approximately 10% per year) resulting in additional savings of $109 for 2019 and $218 for 2020 or “$2,020 by 2020”.

Primary Caregiver Tax Credit

Effective immediately, the budget implements a flat $1,400 Primary Caregiver Tax Credit available to all eligible caregivers.

Education Property Tax Credit

Effective January 1, 2019,  the calculation of the education property tax credit will be based on actual school taxes and the $250 deductible will be eliminated.

Tobacco Tax

Effective March 12, 2018, there will be an increase to the tobacco tax rate for fine-cut tobacco to 45¢ per gram (from 28.5¢ per gram).

Carbon Tax

Effective September 1, 2018, there will be an imposed tax of $25 per tonne of greenhouse gas emissions. This new provincial carbon regime will apply to gas, liquid, solid fuels intended for combustion.

Carbon Tax Rates by Select Fuel Type (2018-2022)

Fuel TypeCarbon Tax Rate Per Unit
Gasoline5.32¢/L
Diesel6.71¢/L
Natural Gas
4.74¢/m³
Propane3.87¢/L

To learn how these changes will affect you, please don’t hesitate to contact us.