Tax Changes in 2026: Key Impacts for Manitobans and Winnipeggers

As 2026 approaches, significant changes to taxation are set to impact residents of Manitoba and Winnipeg. These adjustments span federal, provincial, and municipal levels, affecting everything from personal income tax rates to utility costs. Here’s a detailed overview of what individuals can expect in the coming year.

Federal Tax Changes

The federal government is implementing several tax modifications that will influence many Canadians. The basic personal income amount—the non-refundable tax credit—will increase by $323 for those earning under $16,452. This adjustment is part of a broader effort to reduce the tax burden for low-income earners.

The first personal income tax bracket, which applies to income between $16,452 and $58,523, will see its tax rate decrease from 15% to 14%. According to the Parliamentary Budget Officer, this change is projected to save the average taxpayer approximately $190.

Subsequent tax brackets will also experience adjustments. The ceiling for the second bracket, taxed at 20.5%, will rise by $2,295, and the third bracket, taxed at 26%, will increase by $3,558. The highest personal income tax bracket, which affects income over $258,482, will see its ceiling rise by $5,068.

Further changes include an increase in the maximum pensionable earnings under the Canada Pension Plan by $3,100 to $74,600, resulting in a higher contribution cap for both employees and employers. Meanwhile, the Employment Insurance (EI) tax rate will decrease slightly by 0.01 percentage points to 1.63%, though the maximum insurable amount will increase by $3,200 to $68,900.

Provincial Tax Adjustments

At the provincial level, Manitoba is introducing a new tax on cloud computing services, effective January 1, 2026. This includes internet-based subscriptions, data storage, and software development tools, which will now be subject to the provincial sales tax.

Manitoba Hydro will increase electricity rates by 4%, which translates to an additional $50.40 for households using electricity solely for power. Those who use electricity for heating as well will see costs rise by $96.60.

Additionally, the cost of renting cabins in provincial parks will increase significantly. Nightly rates for these rentals will rise from between $38 and $69 to between $45 and $85. Yurt rentals will also see a price hike, going from $56 to $65.

A notable change for tax filers in Manitoba is the end of provincial income-tax bracketing adjustments to keep pace with inflation. This decision is expected to cost residents an estimated $82 million in 2026, according to the Canadian Taxpayers Federation. The basic personal income amount will remain at $15,780, with tax rates for various brackets unchanged.

Municipal Tax Changes in Winnipeg

Winnipeg residents will face a 3.5% increase in property taxes, adding approximately $75 to the municipal portion of tax bills for properties assessed at $371,000. Adult transit fares will rise by 10 cents, bringing the cost to $3.45.

Most city fees will see a 2.5% increase, while waste management fees for garbage and recycling collection will rise by $10 for detached households, totaling $264. For multi-family buildings, the fee will increase by $7 to $134. Water and sewer rates will also increase, with water rates going up by 8 cents per cubic metre and sewer rates by 13 cents.

These changes reflect the government’s ongoing efforts to manage the provincial deficit, projected to reach $1.6 billion, more than double the original forecast.

As Manitobans and Winnipeggers prepare for these tax changes, the impacts on household finances will be significant. Residents are encouraged to assess how these adjustments will affect their budgets in the coming year.