Manitoba tax facts for corporations
Updated
Manitoba is the only province with no small-business corporate tax, and one of few with a separate retail sales tax. The figures, tabled and sourced.
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.
A provincial small-business rate of nil
The CRA records Manitoba’s lower corporate rate as nil. Qualifying active business income up to the limit attracts no Manitoba tax, so only the 9% federal rate applies.
| 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 in Canada on qualifying income, so the 18-point step to the 27% general rate is steep. Protecting the business limit, through associated-company status and passive income, matters more here than elsewhere. The Manitoba tax rate for a corporation is two rates stacked, provincial on federal; the tables show the combined result.
Retail sales tax, filed separately from GST
Manitoba did not harmonize. Its retail sales tax (RST) is run by Manitoba Finance, not the CRA, and sits beside the 5% GST as a second registration. RST paid on business inputs is generally a cost, not a recoverable credit.
| 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.
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.
| 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.
At $5 million the exemption ends and the levy applies to the whole payroll. Workplace coverage is run separately by the Workers Compensation Board of Manitoba.
An annual return keyed to your anniversary month
| 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.
Accountants in Manitoba cities
These rates apply to every city page below; each one covers the local side of the work.
- Manitoba: Winnipeg
Sources
Every rate and threshold on this page comes from the following. Rates change — check the source before relying on a figure.
- CRA — Corporation tax rates (federal and provincial)
- CRA — GST/HST rates by province
- Manitoba Finance — Health and Post Secondary Education Tax Levy
General information, not advice. Have a CPA confirm it for your situation
Manitoba tax facts FAQ
What is the combined corporate tax rate in Manitoba?+
Does Manitoba really charge no provincial tax on small business income?+
What is Manitoba’s sales tax called and what is the rate?+
When does the Health and Post Secondary Education Tax Levy apply?+
When is a Manitoba corporation’s annual return due?+
How current are these Manitoba tax figures?+
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