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 for 2017 and 2018

Taxable Income
Tax Rate
2017
2018
10.8%
$0 - $31,465
$0 - $31,843
12.75%
$31,466 - $68,005
$31,844 - $68,821
17.4%
Over $68,005
Over $68,821

 

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 is 1.5% for the 2017 and 1.2% for 2018.

The 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. 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).
 
 
  • Other Measures
 
2017
2018
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)
  • 16% 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 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

 

For 2018, basic federal tax rates are:

  • 15% on the first $46,605 of taxable income +
  • 20.5% on taxable income over $46,605 up to $93,208 +
  • 26% on taxable income over $93,208 up to $144,489 +
  • 29% on taxable income over $144,489 up to $205,842 +
  • 33% on taxable income over $205,842

 

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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