Manitoba tax facts for corporations

Reviewed by EverStone CPA · July 2026

Manitoba is the only province that taxes small-business corporate income at nothing at all — and one of the few that still runs a standalone retail sales tax. The provincial figures for a Manitoba corporation, tabled and sourced.

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Quick answer: Manitoba levies no provincial corporate income tax on income eligible for the small business deduction and 12% on general income, on a $500,000 limit. The province charges 7% retail sales tax alongside 5% GST, and the Health and Post Secondary Education Tax Levy starts above $2.5 million of payroll.

Shape of the Manitoba tax obligations for a corporation: GST plus a separate provincial retail sales tax administered by Manitoba Finance with no HST, a Health and Post Secondary Education Tax Levy whose exemption is high enough that most owner-managed companies never reach it, and one T2 alongside an annual return of information keyed to the anniversary month — A separate retail sales tax, and a payroll levy most firms never reach.

Corporate income tax

A provincial small-business rate of nil

Manitoba’s lower corporate rate is recorded by the CRA as nil. That is not a rounding of a small percentage — qualifying active business income up to the limit attracts no Manitoba corporate income tax, so the only layer left on it is the 9% federal rate.

Manitoba corporate income tax rates — 2026 tax year
Measure	Provincial	Federal	Combined
Lower (small-business) rate	nil	9%	9%
Higher (general) rate	12%	15%	27%
Business limit	$500,000

Provincial rates and business limit per the Canada Revenue Agency Corporation tax rates table; federal net rates from the same page. Retrieved 31 July 2026.

A 9% combined rate is the lowest available anywhere in Canada on qualifying income, and it makes the 18-point step up to the 27% general rate unusually steep. For a Manitoba corporation, protecting the business limit — watching associated-company status and the grind that passive investment income can cause — carries more weight than it does in a province where the two rates sit closer together.

Sales tax

Retail sales tax, filed separately from GST

Manitoba did not harmonise. Its provincial tax is called retail sales tax (RST) rather than PST, it is administered by Manitoba Finance rather than the CRA, and it sits beside the 5% GST as a second registration with its own returns. RST paid on business inputs is generally a cost rather than a recoverable credit, which is the practical difference from an HST province.

Sales tax in Manitoba — rates in effect July 2026
Tax	Rate	Administered by
GST	5%	Canada Revenue Agency
Retail sales tax (RST)	7%	Manitoba Finance
HST	Not applicable	—

Rates per the Canada Revenue Agency GST/HST rates by province table, which lists Manitoba at 5% GST plus 7% PST. Retrieved 31 July 2026.

Payroll

The Health and Post Secondary Education Tax Levy

Manitoba’s payroll levy — universally shortened to the HE Levy — is charged on remuneration paid by employers with a permanent establishment in the province. Its exemption is far higher than British Columbia’s or Ontario’s, so most owner-managed Manitoba companies never reach it.

Manitoba HE Levy — 2026 calendar year
Total yearly payroll	Levy
$2.5 million or less	Exempt
Between $2.5 million and $5.0 million	4.3% on the amount in excess of $2.5 million (notch provision)
Over $5.0 million	2.15% of total payroll ($2.5 million is not deducted)

Per Manitoba Finance, Health and Post Secondary Education Tax Levy. Associated groups share the $2.5 million exemption; employers without a permanent establishment for a full year prorate it. Retrieved 31 July 2026.

Note what happens at $5 million: the exemption stops being a deduction entirely and the levy applies to the whole payroll. Crossing that line is not a marginal event. Workplace coverage is administered by the Workers Compensation Board of Manitoba, separately from Manitoba Finance.

Corporate registry

An annual return keyed to your anniversary month

Manitoba corporate registry obligations — current July 2026
Item	Manitoba
Registry	Companies Office (Entrepreneurship Manitoba)
Annual filing	Annual Return of Information
Reference date	The corporation’s anniversary month — the month it was created or amalgamated
Due	By the end of the month following the anniversary month
Workers’ compensation	Workers Compensation Board of Manitoba

Per the Manitoba Companies Office, Filing the Annual Return of Information under The Corporations Act of Manitoba. Retrieved 31 July 2026.

Unlike Ontario’s, this deadline has nothing to do with your fiscal year-end, so a corporation with a December year-end and a June incorporation date has two unrelated annual dates to keep. See the Canadian tax deadline calendar for the federal ones.

Compare with other provinces

Same tables, different province.

Saskatchewan tax facts →Ontario tax facts →BC tax facts →Winnipeg accountant →Corporate tax hub →

Common questions

Manitoba tax facts FAQ

What is the combined corporate tax rate in Manitoba?+

9% on active business income eligible for the small business deduction, because Manitoba’s lower rate is nil and only the 9% federal rate applies. General income is taxed at 27% combined (15% federal plus 12% Manitoba).

Does Manitoba really charge no provincial tax on small business income?+

On income eligible for the small business deduction, up to the $500,000 business limit, yes — the CRA corporation tax rates table records Manitoba’s lower rate as nil. Income above the limit is taxed at the 12% general rate.

What is Manitoba’s sales tax called and what is the rate?+

Retail sales tax, or RST, at 7%. It is administered by Manitoba Finance and filed separately from the 5% GST, so a Manitoba business can hold two sales-tax registrations with two sets of returns.

When does the Health and Post Secondary Education Tax Levy apply?+

Employers with total yearly payroll of $2.5 million or less are exempt. Between $2.5 million and $5.0 million the levy is 4.3% of the excess over $2.5 million; above $5.0 million it is 2.15% of the entire payroll with no deduction.

Do associated companies share the Manitoba payroll exemption?+

Yes. Associated corporations and certain corporate partnerships share the one $2.5 million exemption based on their combined yearly payroll, and employers without a permanent establishment in Manitoba for the full year prorate it.

When is a Manitoba corporation’s annual return due?+

The Annual Return of Information is keyed to the corporation’s anniversary month — the month it was created or amalgamated — and is due by the end of the following month. It is filed with the Companies Office, not the CRA.

How current are the figures on this page?+

Every rate and threshold here was confirmed against the CRA and Province of Manitoba sources named beneath each table on 31 July 2026. This is general information rather than advice for a specific corporation.

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