Federal tax changes
Basic personal income amount (non-refundable tax credit): Total income under $16,452. This rises $323.
Taxation rate on the first personal income tax bracket: Down one percentage point (from the start of 2025) to 14 per cent. This will save the average Canadian who files a tax return $190, according to the parliamentary budget officer.
First personal income tax bracket (income taxed at 14 per cent): $16,452 to $58,523. The ceiling on this bracket rises $1,148.
Second personal income tax bracket (income taxed at 20.5 per cent): $58,523 to $117,045. The ceiling on this bracket rises $2,295.
Third personal income tax bracket (income taxed at 26 per cent): $117,045 to $181,440. The ceiling on this bracket rises $3,558.
Fourth personal income tax bracket (income taxed at 29 per cent): $181,440 to 258,482. The ceiling on this bracket rises $5,068.
Highest personal income tax bracket (income taxed at 33 per cent): Any income higher than $258,482.
Canada Pension Plan: Maximum pensionable earnings increase by $3,100 to $74,600. This increases the maximum employee and employer contribution for the year by $196.35 to $4,230.45
Employment Insurance: The EI tax rate drops 0.01 percentage points to 1.63 per cent, but the maximum insurable amount increases by $3,200 to $68,900.
Industrial carbon tax: On the rise from $95 a tonne to $110 per tonne, though it’s unclear how this will be passed down to consumers.
Manitoba tax and fee changes
Cloud computing tax: Starting on Jan. 1, provincial sales tax will apply to computing services such as internet-based subscriptions to software, data servers and storage, and online platforms that provide tools to develop apps.
Hydro rates: Up four per cent on Jan. 1 in a move that will cost the average Manitoba household that uses electricity only for power an additional $50.40 in 2026, according to Manitoba Hydro. The average household that uses electricity for heating as well as power will pay an additional $96.60, Hydro estimates.
Campground fees: The nightly cost of publicly owned cabin rentals in selected provincial parks will rise in the new year to a range of $45 to $85 from the current $38 to $69. Yurt rentals will increase to $65 a night from $56. There are also nominal fee increases for campsite rentals as well as a new $10 fee for cancelling campsite reservations.
An end to provincial income-tax bracketing: The province will stop sliding income tax thresholds to keep pace with inflation in 2026. The Canadian Taxpayers Federation says the resulting bracket creep will cost Manitobans who file income taxes $82 million next year.
Provincial income tax brackets: The basic basic personal income amount — also known as the non-refundable tax credit — will remain $15,780. Income between $15,780 and $47,000 will continue to be taxed at 10.8 per cent. Income between $47,000 and $100,000 will continue to be taxed at 12.75 per cent. Income over $100,000 will continue to be taxed at 17.4 per cent.
Provincial property taxes (also known as education taxes): The maximum credit rises $100 to $1,600. Since this is the second year of a flat education tax credit, there won’t be anywhere near as many wild fluctuations in the paper property tax bills that present the combined tab for provincial and municipal property taxes.
Credits for renters: Up $50 to $625.
Winnipeg tax and fee changes
Property taxes: Up 3.5 per cent. This hike will add $75 to the municipal portion of a tax bill for a property assessed at $371,000.
Winnipeg Transit: Adult fares up 10 cents to $3.45.
Most city fees: Up 2.5 per cent across the board, with some exceptions. The fee hike in 2025 was five per cent.
Waste management fee (for garbage and recycling collection): Up $10 per detached household to $264. For units in multi-family buildings, the fee rises $7 to $134.
Water rate: Up eight cents per cubic metre, to $2.17.
Sewer rate: Up 13 cents per cubic metre, to $4.53.
