NEW – MB: Tax changes effective January 1, 2021

A number of tax savings that the government says will benefit Manitobans and help to protect their hard-earned income will come into effect on January 1.

Manitoba personal income tax brackets and the Basic Personal Amount will increase by 2.2 per cent for the 2021 taxation year as they are indexed to the Manitoba Consumer Price Index. As a result, an estimated 3,300 taxpayers are expected to be removed from the 2021 tax rolls.

Other changes include:

• Increasing the Health and Post-Secondary Education Tax Levy exemption threshold to $1.5 million from $1.25 million of annual remuneration. In addition, the threshold below which employers pay a reduced rate increases to $3 million from $2.5 million. The new thresholds will benefit approximately 1,000 Manitoba employers including exempting about 220 employers.
• Making permanent the Manufacturing Investment Tax Credit that was to expire at the end of this year. It supports businesses that acquire qualified manufacturing and processing plant, machinery, and equipment for use in Manitoba.
• Extending the Mineral Exploration Tax Credit for three years to Dec. 31, 2023, supporting Manitobans who invest in flow-through shares in qualifying mineral exploration companies engaged in Manitoba with a 30 per cent income tax credit.
• Extending the Community Enterprise Development Tax Credit one year, supporting investments in communities and community-based enterprises. Manitoba-resident investors are eligible for a 45 per cent refundable income tax credit on investments in eligible shares.
• Reducing the interest rate on provincially administered tax debts, such as sales tax, health and post-secondary education tax levy, fuel tax and tobacco tax, to prime plus four per cent from the current prime plus five per cent.

For more detailed information on the tax changes, please click here.