Taxes

Personal Taxes: Affordable and Competitive

Winnipeg and Manitoba are viewed as very competitive in terms of personal taxes against cost of living. This is reflected in our affordable cost of housing and general cost-of-living expenses. The Government of Canada has a goods and services tax (GST), whereby individuals, businesses and other entities pay five per cent on most goods and services procured.

In Manitoba, an eight per cent retail sales tax (RST) is also levied on most goods and certain services. The RST is calculated on the selling price before GST is applied. Calculated together, Manitobans pay the fourth-lowest combined sales tax rate in Canada (RST and GST). Most businesses, including manufacturers and processors, qualify for full input tax credits on the amount of GST paid on purchases made for business purposes where the firm is not the final consumer.

There is also a GST credit for low-income households. The amount of this credit depends on a number of factors, including household income, number of dependent children, marital status, etc.

The City of Winnipeg derives the majority of its revenue through property taxes, with a small portion coming from a municipal business tax and user fees. Property taxes are calculated by applying municipal and school mill rates against the portioned assessment of an individual’s property. By definition, a mill is a one-thousandth part. For calculating taxes, one mill represents one dollar of taxes for every $1,000.00 of portioned assessment.

Personal Tax Example

Portioned Assessment x Municipal Mill Rate
1000
= Municipal Taxes
Portioned Assessment x Provincial Education Mill Rate
1000
+
= Provincial Education Taxes
Portioned Assessment x School Division Mill Rate
1000
+
= School Division Taxes
    + Local Improvements
    = Total Current Taxes (Gross)

Businesses and Business Improvement Zones: Tax Levy Rates

The business tax rate in Winnipeg is 5.9 per cent. Business taxes are calculated by applying a tax levy rate against the annual rental value. If applicable, a business improvement zone (BIZ) levy is also applied against the annual rental value.

Business Tax Example

Annual Rental Value x Tax Rate (Set by City Council) = Applicable Business Tax

Note: the applicable BIZ levy is calculated by applying the annual rental value multiplied by the BIZ levy rate.