Manitobans Brace for 2026 Rate Hikes and Tax Changes

As 2026 approaches, Manitobans will face a series of new rates and tax adjustments that will impact their financial landscape. Notably, a 4% increase in Manitoba Hydro rates will take effect on January 1, 2026. This interim hike, announced by the Public Utilities Board, is a response to drought-related losses experienced by the utility and its need to maintain and expand the power grid.

The Consumers Coalition, which includes organizations such as Manitoba Harvest and the Aboriginal Centre of Winnipeg, indicated that while the rate hike is a necessary measure, it places additional burdens on consumers already grappling with rising costs of living. They noted, “It is an understandable response from Hydro’s regulator to send a message that the drought is being taken seriously.” However, they also expressed concern that Hydro has not sufficiently evaluated its own expenses before imposing increases on customers.

For renters, the situation is slightly more favorable. The Manitoba government has set the 2026 rent increase guideline at 1.8%. This guideline is determined annually based on the consumer price index and is applicable to most residential rental properties. However, it does not apply to units renting for $1,670 or more per month, nor to specific types of social housing. Tenants are required to receive written notice of any rent increase at least three months in advance. For instance, if a rent increase is slated for January 1, tenants must have received notice by September 30.

In addition to these rate changes, a series of tax modifications were detailed in the provincial budget. A significant payroll tax cut will also be implemented on January 1, with annual thresholds adjusted so that businesses with payrolls at or under $2.5 million will be exempt from this tax. Furthermore, the threshold for paying a reduced effective rate will increase to $5 million from $4.5 million.

Homeowners will benefit from an increase in the tax credit, which will rise to $1,600 from $1,500. This credit is intended to replace the school tax rebate and the education property tax credit. Renters will see a similar increase, with the maximum tax credit for renters set to rise to $625 from $575. Additionally, seniors will receive a higher top-up, increasing from $328 to $357.

As Manitobans prepare for the new year, they should also anticipate higher fees at provincial campgrounds. The nightly fee for a yurt will increase to $65 from $56, while the cost for a four-bed cabin in Camp Morton Provincial Park will rise to $85 a night from just over $70.

These changes signal a significant shift in financial dynamics for residents, compelling many to reevaluate their budgets as they navigate through rising costs and new economic realities.