On March 20, 2025, the Manitoba Finance Minister tabled the 2025 Budget, introducing several payroll and tax changes, as follows:
Provincial Personal Income Tax Rate
The indexation of the Basic Personal Amount (BPA) and tax bracket thresholds to inflation will be frozen.
Heath and Post Secondary Education Tax Levy (HAPSET) Measure
Effective January 1, 2026, the exemption threshold will increase from $2.25 million to $2.5 million of annual remuneration. Additionally, the threshold below which businesses pay a reduced effective rate will rise from $4.5 million to $5 million.
Manitoba employers with up to $5.0 million of remuneration will pay 4.3 per cent on the amount in excess of $2.5 million. Employers with more than $5.0 million will pay the tax on their total MB remuneration at 2.15 per cent.
These changes aim to exempt more businesses from the levy and reduce the tax burden on others.
Cultural Industries Printing Tax Credit
The Cultural Industries Printing Tax Credit, which applied to eligible expenses incurred until December 31, 2024, is made permanent. This tax credit provides Manitoba’s printing industry with a 35 per cent refundable credit on salary and wages paid to Manitoba employees.
Minimum wage
In 2025, the minimum wage will increase (the rate has not yet been officially announced).
Employers in Manitoba should
- Assess these changes to understand their potential impact on operations and financial planning;
- Monitor the upcoming minimum wage increase;
- Get ready for the 2026 HAPSET exemption amount increase.