The year 2026 promises significant tax updates for residents of Manitoba and Winnipeg, introducing various adjustments to federal, provincial, and municipal tax structures. Here’s what you need to know about these changes.
Federal Tax Changes Overview
Several federal tax adjustments are set to take effect in 2026:
- Basic Personal Income Amount: This non-refundable tax credit increases by $323 for total incomes under $16,452.
- First Tax Bracket Rate: The tax rate decreases from 15% to 14%, resulting in an average annual savings of $190.
- Tax Bracket Ceilings:
- First Bracket: Incomes up to $58,523, ceiling rises by $1,148.
- Second Bracket: From $58,523 to $117,045, ceiling rises by $2,295.
- Third Bracket: From $117,045 to $181,440, ceiling rises by $3,558.
- Fourth Bracket: From $181,440 to $258,482, ceiling increases by $5,068.
- Highest Bracket: Incomes above $258,482 are taxed at 33%.
- Canada Pension Plan (CPP): Maximum pensionable earnings will rise to $74,600, increasing contributions by $196.35.
- Employment Insurance (EI): EI tax rate will lower to 1.63%, but the maximum insurable amount will reach $68,900, rising by $3,200.
- Industrial and Consumer Carbon Tax: The industrial carbon tax increases from $95 to $110 per tonne.
Provincial Tax and Fee Changes
Manitoba will implement several modifications under its tax system in 2026:
- Cloud Computing Tax: Provincial sales tax will apply to internet-based computing services starting January 1.
- Hydro Rates: Electricity rates will increase by 4%, costing average households an additional $50.40 for power-only usage.
- Rental Fees:
- Campground fees for cabin rentals will rise to between $45 and $85.
- Yurt rentals will increase to $65.
- End of Income Tax Bracketing: The province will cease sliding income tax thresholds for inflation, costing residents an estimated $82 million.
Provincial Income Tax Brackets
The provincial income tax brackets remain largely unchanged:
- Basic Personal Income Amount: Remains at $15,780.
- Tax Rates:
- Income from $15,780 to $47,000 will be taxed at 10.8%.
- Income from $47,000 to $100,000 will be taxed at 12.75%.
- Income over $100,000 will be taxed at 17.4%.
- Property Tax Credit: Maximum credit increases to $1,600.
- Credits for Renters: Increased by $50 to a total of $625.
City of Winnipeg Tax and Fee Adjustments
Winnipeg residents will also see tax changes starting in 2026:
- Property Taxes: An increase of 3.5% will add approximately $75 to the municipal tax bill on properties assessed at $371,000.
- Transit Fares: Adult bus fares will increase to $3.45.
- Waste Management Fee: Increased by $10, totaling $264 for detached households.
- Water and Sewer Rates:
- Water rate increases by eight cents to $2.17 per cubic meter.
- Sewer rate increases by thirteen cents to $4.53 per cubic meter.
These scheduled tax updates are intended to address budgetary needs and reflect the provincial agenda towards a more affordable living context in Manitoba and Winnipeg as 2026 approaches.
