On April 24, 2025, the government of Manitoba introduced legislation to implement measures announced in the 2025 Budget, including an increase to the payroll tax exemption threshold.
Currently, the exemption and the rates are as follows:
|
If the total annual remuneration is |
Tax payable is calculated as follows |
|
$2,250,000 or less |
Exempt |
|
Between $2,250,000 and $4,500,000 |
Assessable remuneration less $2,250,000 x 4.3% |
|
Over $4,500,000 |
Assessable remuneration x 2.15% |
Effective January 1, 2026, the proposed exemption threshold for the payroll tax is as follows:
|
If the total annual remuneration is |
Tax payable is calculated as follows |
|
$2,500,000 or less |
Exempt |
|
Between $2,500,000 and $5,000,000 |
Assessable remuneration less $2,500,000 x 4.3% |
|
Over $5,000,000 |
Assessable remuneration x 2.15% |
The National Payroll Institute will continue to monitor the progress of this legislation and provide further details as they become available.