Individuals and businesses will benefit from taxation changes coming into effect in 2019, Finance Minister Scott Fielding said today.
“We are putting money back on the kitchen table for families, seniors and households across the province,” said Fielding. “Our government will continue to take action to reduce taxes and ensure Manitoba is a competitive and affordable place to live, work and raise a family.”
Manitoba legislated the indexing of the basic personal amount and personal income tax brackets to the rate of inflation beginning in 2017. This ends bracket creep for Manitoba taxpayers, ensuring individuals and families keep more of their income.
The minister noted the basic personal amount will increase from $9,382 in the 2018 tax year to $9,626 in 2019. Since 2016, the basic personal amount has increased by $492.
In 2018, indexing removed an estimated 1,740 Manitobans from the tax rolls and saved residents more than $17.5 million annually. In 2019, indexing will remove an additional 3,810 Manitobans from the tax rolls for an additional annual savings of $38 million.
To support growth and investment in Manitoba’s economy, Budget 2018 increased the small business income limit eligible for the zero per cent small business rate from $450,000 to $500,000 in 2019. This will bring Manitoba in line with other provinces and the federal government on the income threshold.
In addition, the new Child Care Centre Development Tax Credit is now in place. This refundable corporation income tax credit supports the creation of licensed childcare centres in workplaces.
The Manitoba government is accepting applications from private corporations that intend to create new infant and preschool childcare spaces as part of a centre. A total benefit of $10,000 per new space created is available, claimable over five years.
Fielding noted the province remains committed to rolling back the retail sales tax from eight per cent to seven per cent by 2020.
“It will save families and businesses more than $300 million a year and improve Manitoba’s competitiveness,” said Fielding. “In 2019, we will continue our work to fix the province’s finances, repair services and rebuild our economy.”
For more information, visit www.gov.mb.ca/budget2018/index.html.
For more information about the Child Care Centre Development Tax Credit, visit www.gov.mb.ca/fs/childcare/resources/centre_dev_tax_credit.html.