Tax Exemptions in Manitoba: RST, Credits, and Property

Manitoba offers a layered set of tax exemptions in Manitoba that reduce or eliminate the 7% Retail Sales Tax on certain goods, shield a base amount of income from provincial income tax, and cut property tax on your principal home. Basic groceries, prescription drugs, children’s clothing priced $150 or less, and qualifying books are exempt from RST at the till. The first $15,780 of income is exempt from provincial income tax. Homeowners can claim up to $1,600 through the Homeowners Affordability Tax Credit, and additional credits exist for seniors, people with disabilities, caregivers, farmers, and First Nations individuals.

What’s Exempt From the 7% Retail Sales Tax

Most everyday RST exemptions apply automatically at the register, so you pay nothing extra and file nothing later.¹

Basic groceries such as milk, bread, fresh produce, meat, and eggs are not taxed. Prepared meals and snack foods generally are. Starting July 1, 2026, Manitoba is expanding the food exemption to cover additional food and beverages, though items sold by restaurants, food trucks, catering services, vending machines, and licensed premises will stay taxable.²

Prescription drugs dispensed to a named individual are fully exempt. So are hearing aids, replacement batteries and alarm devices designed for people with hearing impairments, artificial limbs, prosthetic covers, and a wide range of other medical equipment and supplies.³

Children’s Clothing and Footwear

Children’s clothing, footwear, and accessories are exempt when two conditions are met: the item falls within designated children’s size ranges, and the selling price is $150 or less. Girls’ dresses and tops are exempt up to Canada Standard Size 16, boys’ garments up to Size 20, and children’s footwear up to Size 6 for both girls and boys.¹

If an item is larger than those listed sizes but still priced at $150 or less, you can still get the exemption when the item is for a child aged 14 or under. The vendor must obtain a written certification from you confirming that. Items priced above $150 are taxable regardless of size.¹

Books

Books are exempt, but the definition is narrow. The book must be printed and permanently bound with a distinct cover, produced for general public use, published for educational, technical, cultural, or literary purposes, and contain no advertising. Comic books, music books, and atlases that are bound and ad-free qualify. E-books in a format viewable on an electronic device can qualify if they meet the same content requirements.⁴

Directories, magazines, newspapers, notebooks, puzzle books, catalogues, and training manuals are all taxable. A stapled pamphlet is not “permanently bound,” and any advertising anywhere in a book kills the exemption.⁴

Income Tax Credits That Lower What You Owe

Manitoba’s non-refundable credits reduce your final provincial tax bill. The lowest bracket is 10.8% on the first $47,000 of taxable income, and that rate is used to convert the credit amounts below into actual tax savings.

Basic Personal Amount

Every Manitoba resident can earn $15,780 before owing provincial income tax. At 10.8%, that works out to roughly $1,704 in tax reduction. The Basic Personal Amount begins phasing out once your net income exceeds $200,000 and disappears entirely at $400,000.⁵

Age, Disability, and Caregiver Credits

Residents aged 65 or older can claim the Age Amount of $3,728. It is income-tested, beginning to shrink once your net income exceeds $27,749 and reaching zero at $52,602.⁵

The Disability Amount adds a credit of $6,180 if you have a physical or mental impairment that markedly restricts daily activities. A supplement of $3,605 is available for a child with a disability, reduced by any child care expenses claimed above $2,112.⁵

The Primary Caregiver Tax Credit is worth $1,400 per year for anyone providing unpaid care to a Manitoba resident assessed at care level 2 or higher. The care recipient must live in a private residence, not a personal care home or group home, and can designate only one caregiver. The caregiver must provide care for more than 90 consecutive days and cannot be the spouse of someone who receives compensation for caring for that same person.⁶

Fitness, Arts, and Tuition

The Fitness Tax Credit allows up to $500 per child or young adult up to age 24 for eligible physical activity programs, doubled to $1,000 if the child has a disability. The Children’s Arts and Cultural Activity Tax Credit follows the same structure. Full-time post-secondary education qualifies for a $400-per-month credit, and part-time students can claim $120 per month.⁵

Homeowners Affordability Tax Credit

Manitoba replaced the former Education Property Tax Credit and school tax credit with the Homeowners Affordability Tax Credit (HATC). For 2026, the HATC covers up to $1,600 of the school taxes on your principal residence, or the actual school tax amount if lower. The credit applies only to your primary home, not rental properties, cottages, or commercial buildings.⁷⁸

Most homeowners receive the HATC as an advance directly on their municipal property tax statement, so the reduction shows up automatically. Condominium owners whose units are individually assessed get the advance the same way. If you own a unit in a duplex or triplex that is not individually assessed, or a mobile home on land you do not own, you can claim the HATC on your income tax return instead. Spouses or common-law partners living in separate properties can only designate one property.⁸

Seniors School Tax Rebate

Seniors can claim an additional rebate on top of the HATC. You or your spouse must be 65 or older by year-end, own your principal residence, and have combined family income under $63,500. The person who claims the HATC must also be the one who claims the seniors rebate. You report your gross school taxes on your income tax return, and the rebate is calculated on the taxes assessed before the HATC advance was deducted.⁷

Property Exemptions for Farmland, Churches, and Charities

Farmland receives favorable assessment treatment under The Municipal Assessment Act, and farm property is exempt from school taxes.⁹

Property owned by a religious denomination and used primarily as a place of worship, a religious retreat house, or for religious instruction is partially exempt from municipal taxation, up to a maximum of 0.81 hectares. Charitable organizations providing relief to elderly, low-income, or sick individuals qualify for an exemption from school taxes on their property, subject to the same size limit. Properties used solely as museums by charitable corporations also receive a school tax exemption.¹⁰

Farm and Manufacturing RST Exemptions

Farmers get some of the broadest RST exemptions in the province. Equipment qualifies as “principally for farming” if it is used at least 80% for farming purposes during the 24 months after purchase. Exempt items fall into two lists: List A items require the vendor to collect a Farm-Use Certificate from the buyer, and List B items are readily identifiable as farm equipment and need no certificate.¹¹

Exempt items include farm tractors and attachments, crawler tractors, trailers not requiring highway licensing, grain aeration equipment, barn cleaning equipment, electric generators and solar panels used exclusively in farm production, fencing for livestock, drugs and medicines for livestock, and containers for farm produce.¹¹

In November 2025, Manitoba introduced legislation to convert the Manufacturing Investment Tax Credit for qualified machinery and equipment into a direct RST exemption at the point of purchase, rather than requiring manufacturers to pay the tax upfront and recover it later through a credit. A small 1% non-refundable portion of the original credit structure is retained.¹²

First Nations Exemptions Under Section 87

Section 87 of the federal Indian Act exempts the personal property of a First Nations individual or band from taxation when that property is situated on a reserve, and this covers both income and physical goods. Manitoba honours this federal exemption for provincial sales tax and income tax.¹³

If you are a registered First Nations individual and your employment income is earned on a reserve or is considered situated on a reserve, that income is exempt from Manitoba’s provincial tax. For sales tax, goods purchased on a reserve or delivered to a reserve by a vendor or common carrier qualify. Vendors delivering to a reserve must document the transaction on the sales invoice, including the purchaser’s name, Registration (Status) number, signature, the name of the reserve, and the method of delivery, and for phone or online orders they must retain a copy of both sides of the Status card.¹⁴¹⁵

How to Claim Exemptions and Keep Records

For everyday RST exemptions, there is nothing to file. Groceries, prescription drugs, and children’s clothing within the standard size ranges come off tax-free at the register. For oversized children’s clothing priced at $150 or less, give the vendor a written statement that the purchase is for a child aged 14 or under.¹

For personal income tax credits, complete the TD1MB Manitoba Personal Tax Credits Return when starting a new job or when your situation changes, so your employer withholds the correct amount from each paycheque.¹⁶ The HATC is normally applied as an advance on your property tax statement, but you can also claim it on your annual return if it was not applied that way.

If you paid RST on something that should have been exempt, apply for a refund using Manitoba Finance’s Application for Refund form, describing the date, vendor, item, price, and tax paid. Keep the original receipts.

Hold onto tax records for at least six years from the end of the tax year they relate to. If you file a return late, the six-year period runs from the filing date. Records for long-term property acquisitions or disposals should be kept indefinitely, and if you have filed an objection or appeal, keep everything until the matter is fully resolved.¹⁷

1
Government of Manitoba. The Retail Sales Tax Act – Clothing, Footwear and Accessories
2
Government of Manitoba. RST 26-01 – Expanded Exemption on Food and Beverages
3
Government of Manitoba. Drugs, Medical Equipment and Supplies for Human Use
4
Government of Manitoba. Printing, Desktop Publishing and Related Services
5
Province of Manitoba. Personal Tax Credits
6
Province of Manitoba. Primary Caregiver Tax Credit
7
Canada Revenue Agency. Manitoba Tax Information for 2025
8
Province of Manitoba. Homeowners Affordability Tax Credit
9
Manitoba Laws. The Municipal Assessment Act
10
Manitoba Laws. The Municipal Assessment Act
11
Province of Manitoba. Farm-Use Equipment and Other Items
12
Government of Manitoba. Manitoba Government Introduces Legislation to Provide Tax Relief to Manufacturers
13
Justice Laws Website. Indian Act – Section 87
14
Canada Revenue Agency. Information on the Tax Exemption Under Section 87 of the Indian Act
15
Government of Manitoba. First Nations Individuals, Bands and Organizations
16
Canada Revenue Agency. TD1MB 2026 Manitoba Personal Tax Credits Return
17
Canada Revenue Agency. Where to Keep Your Records, for How Long and How to Request the Permission to Destroy Them Early