--- title: "Manitoba Corporate Tax Rates: 0% Small Business, 12% General" url: https://www.everstonecpa.com/manitoba-tax-facts description: "Manitoba corporate rates, retail sales tax and the health and post-secondary levy in four tables. Check the annual return keyed to your anniversary month." type: service-or-info updated: 2026-10-05 summary: "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." faq_count: 7 publisher: EverStone CPA Inc., a Chartered Professional Accountant firm registered with CPA British Columbia and CPA Alberta service_area: British Columbia, Alberta, Ontario and Manitoba language: en-CA contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online --- [Home](https://www.everstonecpa.com/) [Manitoba](https://www.everstonecpa.com/accountant-manitoba) Tax facts Reference tables · Manitoba # Manitoba tax facts for corporations Updated 5 October 2026 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. [Get My Fixed Quote](https://www.everstonecpa.com/book-online)[Ask a Free Question](https://www.everstonecpa.com/quick-question) **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 Manitoba company?** We file the T2 with the Manitoba small-business rate, RST and payroll levy handled, with bookkeeping from $325 a month and the year-end quoted in writing. [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=corporate-tax#enquiry-form) A separate retail sales tax, and a payroll levy most firms never reach. Corporate income tax ## 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. 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 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. Sales tax ## 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. 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. 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**. 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](https://www.everstonecpa.com/cra-tax-deadlines) for the federal ones. ## Compare with other provinces Same tables, different province. [Ontario tax facts](https://www.everstonecpa.com/ontario-tax-facts)[BC tax facts](https://www.everstonecpa.com/bc-tax-facts)[Winnipeg accountant](https://www.everstonecpa.com/accountant-winnipeg)[Corporate tax hub](https://www.everstonecpa.com/corporate-tax-hub) ## Accountants in Manitoba cities These rates apply to every city page below; each one covers the local side of the work. - **Manitoba:** [Winnipeg](https://www.everstonecpa.com/accountant-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)](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/corporation-tax-rates.html) - [CRA — GST/HST rates by province](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-collect-which-rate.html) - [Manitoba Finance — Health and Post Secondary Education Tax Levy](https://www.gov.mb.ca/finance/taxation/taxes/payroll.html) General information, not advice. [Have a CPA confirm it for your situation](https://www.everstonecpa.com/book-online) 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). [Ask about your case →](https://www.everstonecpa.com/quick-question) **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 these Manitoba tax figures?** 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. ## Manitoba corporation, remote CPA T2, RST and payroll handled online, at a fee agreed in writing before work starts. [Get My Fixed Quote](https://www.everstonecpa.com/book-online)[Ask a Free Question](https://www.everstonecpa.com/quick-question) ★★★★★ “…have been completing my bookkeeping, taxes and financials for the last 2 years and they have been amazing. Thank you!” R. H. · Google review --- Source: https://www.everstonecpa.com/manitoba-tax-facts Prices: https://www.everstonecpa.com/pricing · Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online