Personal Income Taxes

The Canada Revenue Agency collects and administers federal individual income taxes as well as most provinces' individual income taxes, including Manitoba.


Residents of Canada are required to pay Canadian income taxes on their world income. Generally speaking, residents live primarily in Canada, or maintain a home or family in Canada. Other factors which Canada Revenue Agency considers to determine residency are the maintenance of personal property and social ties in Canada. Sojourners for periods totaling 183 days or more in a year may be deemed to be a resident of Canada and subject to Canadian income taxes.

For more information about residency for Canadian income tax purposes, contact the International Taxation Office, 2204 Walkley Road, Ottawa, Ontario, K1A 1A8 or call 1-800-267-5177 or 1-613-952-3741.


Manitoba Individual Income Taxes

Major Components:

  • Tax Brackets and Rates
2015 and 2016
Taxable Income*
Tax Rate
$0 to $31,000
10.8%
$31,001 to $67,000
12.75%
over $67,000
17.4%
*These brackets will be indexed to inflation starting in 2017.

 

 2017 Tax Year Indexing Rate for the Manitoba Basic Personal Amount and Tax Brackets

Manitoba Budget 2016 announced the indexing of the Basic Personal Amount (BPA) and personal income tax brackets (Brackets) beginning in the 2017 tax year set by the Manitoba Consumer Price Index (CPI). The index rate has now been determined and is 1.5%.

The Manitoba Consumer Price Index (CPI) that determines the provincial index rate is published by Statistics Canada for the twelve month period from October to September of the year prior to the relevant tax year.  For the 2017 tax year, the relevant CPI period is October 2015 to September 2016.  This twelve-month calculation period is consistent with the formula used federally and by other provinces that index.  The formula is entrenched in The Income Tax Act (Manitoba) and will apply automatically in subsequent years.

Tax savings for the BPA are calculated based on the lowest tax rate, which is 10.8%. For every $100 increase in the BPA the tax savings are $10.80.

Tax savings for indexing the Brackets are calculated at the applicable tax rates.  The tax savings from a higher 1st bracket is the difference between being taxed at the first rate (10.8%), versus the second rate (12.75%).  The tax savings from indexing the 2nd bracket is the difference between being taxed at the second rate (12.75%), versus the top rate (17.4%) on the higher threshold.

In Budget 2016, the maximum individual savings as a result of indexing the BPA and Brackets projected at  the time was 1.73% for an estimated $81.  At the actual index rate of 1.5%, the maximum individual savings for the 2017 tax year will be $71. The changes will impact tax withheld at source commencing January 2017.
 
Comparison of Budget Estimates versus Actual BPA and Tax Brackets  
 
Basic
Personal
Amount
1st
Tax
Bracket
2nd
Tax Bracket
Combined
Individual
Savings

2016

$9,134

$31,000

$67,000

-


1.73%
Estimate

2017 Tax Year $9,292 $31,536 $68,156 -
Estimated Maximum
Individual Savings

$17

$10

$54

$81

1.5%
Actual
2017 Tax Year $9,271 $31,465 $68,005 -
Actual Maximum
Individual Savings

$15

$9

$47

$71
 
  • Other Measures
 
2016
2017
Alternative Minimum Tax
  • 50% of additional federal tax attributable to AMT
  • 50% of additional federal tax attributable to AMT
Alternative Minimum Tax Carryover
  • 50% of federal claim for AMT carry-over
  • 50% of federal claim for AMT carry-over
Dividend Tax Credit
  • 17% gross-up, 0.7835% rate for Canadian controlled private corporations, and
     
  • 38% gross-up, 8% rate for "eligible dividends" (from publicly traded corporations)
  • 17% gross-up, 0.7835% rate for Canadian controlled private corporations, and
     
  • 38% gross-up, 8% rate for "eligible dividends" (from publically traded corporations)
Overseas Employment Tax Credit
  • 50% of federal OETC
  • 50% of federal OETC

  

Province-Specific Non-Refundable Measures:

 

Province-Specific Refundable Measures:

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Federal Individual Income Taxes

A resident is taxed on employment income, on business income, on income or capital gains from property, and on other items, such as dividends, interest income, pension or retirement benefits.  Gifts, lottery winnings, and inheritances are not subject to income tax.

 

For 2016, basic federal tax rates are:

  • 15% on the first $45,282 of taxable income +
  • 20.5% on taxable income over $45,282 up to $90,563 +
  • 26% on taxable income over $90,563 up to $140,388 +
  • 29% on taxable income over $140,388 up to $200,000 +
  • 33% on taxable income over $200,000

 

For 2017, basic federal tax rates are:

  • 15% on the first $45,916 of taxable income +
  • 20.5% on taxable income over $45,916 up to $91,831 +
  • 26% on taxable income over $91,831 up to $142,353 +
  • 29% on taxable income over $142,353 up to $202,800 +
  • 33% on taxable income over $202,800

 

There is also a system of non-refundable tax credits featuring a basic credit for all taxfilers with additional credits for taxfilers with personal disabilities, dependent children, a spouse, tuition and ancillary fees, and other prescribed credits. 

For more information on the federal individual income tax, contact the Canada Revenue Agency, 325 Broadway, Winnipeg, 1-800-959-8281 or visit the Canada Revenue Agency Web site

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