Last updated: March 08 2023
Evelyn Jacks
Provincial Budget Season continues, and while the Yukon Territories had no new income tax measures to announce on March 2, Manitoba made a seismic shift, introducing significant personal tax cuts in their March 7 budget. Specifically, the Basic Personal Amount increased 38% to match the federal amount of $15,000 in 2023. If passed, the budget will bring inflation-fighting relief to Manitobans who will see reduced withholding taxes starting July 1. Further, tax brackets will move up 27.5% in the lowest tax bracket and 25.5% in the middle tax bracket in 2024. Details below:
The Personal Amounts. The Basic Personal Amount is the only one to change and continue to be indexed moving forward. The result of the personal amounts will remain at the current level. This change is expected to reduce taxes by $524 per person in 2023.
The New Tax Brackets. On deck for 2024, the following change will occur:
Tax Bracket in 2024 |
Tax Rate |
Comments |
$0 - $15,000 (add indexing in 2024) |
0% |
Many students, side hustle start-ups and part timers have no tax to pay. |
$15,000 to $47,000 |
10.80% |
Great news for low-income seniors, single parents, part timers. Those with $30,000 in taxable income can expect to save 23% or $470. |
$47,001 to $100,000 |
12.75% |
More middle income earners will fall into this bracket. Those with $50,000 in taxable income can expect to save 14% or $633 |
Over $100,000 |
17.40% |
Upper income Manitobans will be pleased. Here savings will be at 12% or $1399 when income is $100,000; 7% or $1399 at $150,000 |
In other news, the Mineral Exploration Tax Credit and the Green Energy Equipment Tax Credit became permanent and the exemption from paying the Health and Post-Secondary Education Tax Level moved from $2 million in payroll to $2.25 million; a reduced levy will apply to payrolls of $4.5 million, this making businesses much happier as well. New types of remuneration will qualify for the Interactive Digital Media Tax Credit.
For homeowners, the School Tax rebate will increase to 50% to an average rebate of $774 in 2023. New measures applied to health care, education funding and for the disabled.
In its midterm economic report, released December 20, Manitoba forecasted:
Threats:
Opportunities:
2023 Provincial Budget Dates
Prov |
Date |
BC |
February 28 |
AB |
February 28 |
SK |
March 22 |
MB |
March 7 |
ON |
March 23 |
QC |
March 21 |
NB |
March 21 |
NS |
TBA |
PE |
TBA |
NL |
TBA |
NU |
February 23 |
NT |
February 8 |
YT |
March 2 |