Canada’s provincial state of Manitoba’s Minister of Finance, Adrien Sala, announced the 2025 provincial budget for Manitoba on 20 March 2025, features a contingency fiscal plan to address the potential impact of widespread US tariffs on Canadian goods.

The Manitoba government has swiftly responded to US tariffs by implementing tax deferrals, a Buy Local campaign, and a contingency budget to support businesses, workers, and farmers. The government is also ending a contract with a Texas firm for park passes and making entry to Manitoba parks free for a year to encourage exploration of the province.

Other key highlights of the 2025 budget are as follows:

No change in corporate tax rates

The Budget made no changes to Manitoba’s corporate income tax rates. The corporate rate stays at 12%, with a 0% small business tax on the first CAD 500,000 of active income.

Exemptions to health and post-secondary education tax levy

The Budget increases the number of businesses exempt from the Health and Post-Secondary Education Tax Levy by raising the thresholds, starting 1 January 2026.

Eliminating corporate capital tax for crown corporations 

After 31 March 2025, provincial Crown corporations in Manitoba will no longer need to pay corporate capital tax, which previously applied to banks, trust and loan corporations, and Crown corporations with permanent establishments in Manitoba.

Indefinitely extending the cultural industries printing tax credit

The 2025 Budget indefinitely extends the Cultural Industries Printing Tax Credit, offering Manitoba’s printing industry a 35% refundable credit on employee salaries and wages.

No change to personal income tax rates

The 2025 Budget does not change personal income tax rates. As of 1 January 2025, the Top combined federal-provincial rates will remain at 50.40% for regular income, 25.20% for capital gains,  46.67% for non-eligible dividends, and 37.79% for eligible dividends.

Changes to retail sales tax (RST)

Starting 1 January 2026, Manitoba will apply retail sales tax to cloud computing services, including software subscriptions, data storage, and remote processing.

Land transfer tax

The Budget revealed the Province’s plans to reform the land transfer system, though no changes have been implemented.