Provincial tax
Manitoba Business Tax Rates for 2026
Manitoba business taxes for 2026: no provincial tax on the first $500,000 of small business income, 7% RST, the payroll levy and the income brackets.
Sources checked October 20264 min read
Key points
- 9% combined on the first $500,000 of active business income
- 27% combined general corporate rate
- 5% GST plus 7% RST, filed separately with Manitoba Finance
- No Manitoba tax on the first $500,000 of small business income
Corporate tax rates in Manitoba
Manitoba is the only province that charges nothing on small business income. A Canadian controlled private corporation pays 0% to Manitoba on its first $500,000 of active business income, so the federal 9% is the whole bill. Above that, Manitoba's 12% brings the combined rate to 27%.
That makes the limit unusually valuable here. It is shared among associated corporations, so a second company controlled by the same people does not bring a second $500,000.
| Rate | Manitoba | With federal tax |
|---|---|---|
| Small business rate | 0% | 9% |
| General rate | 12% | 27% |
| Income the small business rate covers | $500,000 | Same federal limit |
Sales tax in Manitoba
Manitoba's retail sales tax is 7%, charged beside the 5% GST and administered by Manitoba Finance rather than the CRA.
RST is not recovered the way GST is. There is no input tax credit, so the RST a business pays on its own purchases is part of their cost.
Manitoba income tax brackets for 2026
Manitoba uses three brackets, and its top rate of 17.4% starts at $101,200, the lowest top bracket threshold in the country. It reaches a good share of owners who pay themselves a salary.
With federal tax the combined top rate is 50.4%.
| Taxable income from | Up to | Rate |
|---|---|---|
| $0 | $47,564 | 10.8% |
| $47,564.01 | $101,200 | 12.75% |
| $101,200.01 | No upper limit | 17.4% |
Payroll costs in Manitoba
Manitoba's Health and Post Secondary Education Tax Levy applies to employers with a permanent establishment in the province. For 2026, total remuneration of $2,500,000 or less is exempt. Between $2,500,000 and $5,000,000 the levy is 4.3% of the amount above $2,500,000, and above $5,000,000 it is 2.15% of the entire payroll.
Associated employers share the exemption based on their combined payroll. Workplace insurance runs through the Workers Compensation Board of Manitoba.
The provincial accounts in Manitoba
Corporate income tax for Manitoba is part of the federal T2, filed with the CRA. Retail sales tax is the separate one, with its own registration, returns and audits from Manitoba Finance.
Employers above the levy threshold add a third account. The levy is reported and paid to the province, not through the payroll remittances that go to the CRA.
Manitoba questions, answered
What is the small business tax rate in Manitoba?
9% combined, all of it federal. Manitoba charges 0% on the first $500,000 of active business income.
What is the sales tax in Manitoba?
5% GST and 7% RST, 12% in total on most taxable sales, filed on two separate returns.
When does the Manitoba payroll levy start?
When total remuneration for the year passes $2,500,000. An associated group shares that amount.
More for Manitoba businesses
Official sources
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Important. This article provides general educational information, not legal or tax advice for a specific business. Rules, administrative policies, rates and deadlines can change. Confirm your facts and current obligations with the responsible government agency and a qualified adviser.