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Manitoba 2008 Budget - April 9, 2008
See the Manitoba government Budget 2008 website for complete budget details.
Personal Income Tax
Personal tax rates and credits
There were no further changes to personal income tax brackets or rates. These were previously revised for 2008 to 2011 by the 2007 Budget.
The basic personal amount, spousal amount, and eligible dependent amount are each increased by $100 to $8,134 for 2009.
The refundable Personal Tax Credit amounts will be increased in 2009.
The Education Property Tax Credit basic amount is increased from $525 to $600 for 2008.
New Primary Caregiver Tax Credit is introduced for the 2009 tax year. The primary caregiver may be a spouse, other relative, neighbour or friend who provides care without remuneration to a qualifying Manitoba Home Care client. After a three month qualifying period, the refundable credit is $85 per month to a maximum of $1,020 per year to the primary caregiver for each client, to a maximum of three clients within a given month.
Federal Tax Changes
Federal budget 2008 personal income tax measures affecting taxable income that automatically affect provincial taxable income in all provinces and territories except Quebec:
 | new Tax-Free Savings Accounts (TFSA) |
| changes to RESPs |
| reduction of gross-up amount for dividends eligible for the enhanced dividend tax credit (see above). |
| increase in maximum Northern Residents deduction beginning in 2008 |
| expansion of list of expenses eligible for medical expense tax credit, effective 2008 |
Manitoba Retail Sales Tax
Retail sales tax will no longer be charged on non-prescription smoking cessation products, effective May 1, 2008.
Business items exempted from retail sales tax effective May 1, 2008:
| services to direct agents (items consumed in a manufacturing process |
| welding tips and nozzles |
| rolls used in the pulp and paper industry |
| non-returnable stabilizing supplies (shipping supplies exemption) |
Corporate Income Tax Rates
The general corporate tax rate is reduced from 14% to 13% effective July 1, 2008, with a further reduction (announced in Budget 2007) to 12% effective July 1, 2009.
As announced in Budget 2007, the small business corporate income tax rate is reduced from 2% for 2008 to 1% for 2009. See the dividend tax credit page for the corresponding changes in the small business dividend tax credit rates.
Revised: September 20, 2024