There’s only one thing more inevitable than death and taxes: Bad jokes at the beginning of the year about the inevitability of death and taxes.
With that hideous cliché out of the way, here’s how federal, provincial and municipal taxes will change for residents of Manitoba and Winnipeg in 2025:
Federal tax changes
Basic personal income amount (non-refundable tax credit): Up $424 to $16,129.
First personal income tax bracket (income taxed at 15 per cent): Ceiling rises to $57,375 from $55,867.
Second personal income tax bracket (income taxed at 20. 5 per cent): Ceiling rises to $114,750 from $111,733.
Third personal income tax bracket (income taxed at 26 per cent): Ceiling rises to $177,882 from $173,205.
Fourth personal income tax bracket (income taxed at 29 per cent): Ceiling rises to $253,414 from $246,752 .
Fifth personal income tax bracket (income taxed at 33 per cent): Floor rises to $253,414.
Canada Pension Plan: Maximum pensionable earnings increase by $2,800 to $71,500. This increases the maximum contribution for the year by $166.60 to $4,034.10.
Employment Insurance: The E.I. tax rate drops 0.02 percentage points to 1.64 per cent, but the maximum insurable amount increases by $2,500. This results in up to additional taxes of as much as $28 per worker and $40 per employer.
Carbon tax: Slated to rise April 1 to $95 a tonne, increasing taxes on gasoline by 3.3 cents per litre.
Manitoba tax changes
Fuel tax: Returns after a one-year absence. As of Jan. 1, the provincial gas tax will be 12.5 cents per litre.
WATCH | Winnipeggers fuel up on last day of gas tax holiday:
Credits for renters: Up $50 to $575.
Basic personal income amount (non-refundable tax credit): Up $189 to $15,969. Starting in 2025, this is reduced for people with net income above $200,000 and eliminated altogether for people with net income above $400,000.
First personal income tax bracket (income taxed at 10.8 per cent): Ceiling rises to $47,564 from $47,000.
Second personal income tax bracket (taxed at 12.75 per cent): Ceiling rises to $101,200 from $100,000.
Third personal income tax bracket (taxed at 17.4 per cent): Floor rises to $101,200 from $100,000.
Provincial property (education taxes): 50 per cent credit replaced with $1,500 maximum credit, resulting in savings for some and increased taxes for others. See below for detailed explanation.
Premier Wab Kinew, left, and Finance Minister Adrien Sala introduced the 2024-25 Manitoba budget in April. (John Woods/The Canadian Press)
Changes to provincial property (education) taxes
Monthly TIPP payments (Winnipeg only): In general, are slated to rise about 50 per cent on Jan. 1 because a new $1,500 provincial education tax credit will be applied over 12 months this year. TIPP (tax instalment payment plan) payments from July to December 2024 where artificially low because an old 50 per cent credit was not applied from January to June 2024. The actual TIPP amount will also be affected by the assessed value of your home (see below) and city tax hikes (see further below).
Properties with provincial education taxes of $1,500 or less: As of Jan. 1, a new $1,500 credit will eliminate all provincial education tax payments from your property tax bill.
Properties with provincial education taxes of $1,500.01 to $2,999.99: As of Jan. 1, a new $1,500 credit will reduce your provincial education tax payments. The reductions range from one penny to $1,499.99. For example, a property with a $2,500 provincial education tax bill will pay $1,000 in 2025, thanks to the credit. That same property would have paid $1,250 in provincial education taxes in 2024, when the credit was 50 per cent.
Properties with provincial education taxes of precisely $3,000: No change to your provincial education taxes, because the 2024 credit was 50 per cent. You will pay $1,500 again, thanks to the new $1,500 credit.
Properties with provincial education taxes of $3,000.01 or more: As of Jan. 1, you will pay more provincial education taxes because the $1,500 credit has replaced what used to be a 50 per cent credit. For example, a home with a $4,000 provincial education tax bill will pay $2,500 in provincial education taxes in 2025, whereas the provincial tax tab in 2024 was $2,000 after the 50 per cent credit.
Changes related to the biannual City of Winnipeg property reassessment
If the city-assessed value of your property rose by more than the 9.5 per cent city-wide average over the past two years: You will have a higher basic bill for both your municipal and provincial property taxes.
If the city-assessed value of your property rose by less than 9.5 per cent over the past two years: You will have a lower basic property tax bill.
If the city-assessed value of your property rose by roughly 9.5 per cent over the past two years: There will be no change to your basic property tax bill.
Mayor Scott Gillingham, left, and city council finance chair Jeff Browaty introduced the first draft of Winnipeg’s budget for 2025 in December. It faces council approval later this month. (Bartley Kives/CBC)
Winnipeg tax and fee changes
Property taxes: Up 5.95 per cent, pending council approval. This raise will take place regardless of whether your basic property tax bill goes up or down because of the city-wide reassessment (see above). The property tax hike will add $121 to the municipal portion of the annual municipal tax bill for a property assessed at $371,000.
Winnipeg Transit: Adult fares up 10 cents to $3.35
Most city fees: Up five per cent across the board.
Waste-diversion fee: Up $13 per household to $93.
Water rate: Up five cents per cubic metre, per quarter, to $2.09.
Sewer rate: Up 26 cents per cubic metre, per quarter, to $3.47.
Tax certificate mailouts (paper): Up $3 to $68, pending council approval in January, for paper requests; Up $2 to $53 for mailouts requested electronically. Both changes are pending council approval in January.
Advertising licences: Up $2 per square foot of digital signage to $32 per square foot ; up 20 cents per square foot of signage to $3.70.
Mobile home licences: Up 70 cents to $19.80 per month for the first 400 square feet; up 15 cents to $4.90 per month for each additional 100 square feet.