Homeowners have to pay property taxes on their properties which includes municipal and education taxes. These taxes help pay for schools, water supply, waste treatment, recreational programs, garbage/snow removal, emergency services, libraries and many other essential services. However, the property taxes can be burdensome for many homeowners and to offset the costs, province of Manitoba provides a tax credit of up to $700 to all households, whether rented or owned.
The property taxes without the education tax credit are referred to as gross taxes and with the credit are referred to as net property taxes.
The $700 credit is available after the households have paid for minimum property taxes of $250. Any property taxes paid above that amount would be credited up to $700. The credit can be applied directly to the municipal property tax statement by applying before November 15th of each year; however you must have lived in the house since January 1st of the year of application. After the application, the credit will be automatically applied on the property tax statement going forward. If you missed the deadline or weren’t eligible to have the credit applied to your property tax statement, you can claim the credit on the income tax return.
Renters can claim 20% of the rent paid above the threshold of $250 up to a maximum credit of $700. The credit is claimed on the income tax return.
Seniors, 65 years of age or older by the end of the year, may be eligible for additional savings. Whether homeowner or a tenant, if the combined household income is $40,000 or less, additional $400 can be claimed on the income tax return. Manitoba seniors who live in their own homes, may be eligible for the additional Seniors School Tax Rebate. The maximum rebate of $470 can be claimed if you or your spouse/common-law partner: are 65 years of age or older by the end of year; own home or pay school taxes on the principal residence; live in your home; and are residents of Manitoba.
The rebate is calculated on net school taxes paid. For senior households with net family income over $40,000, the rebate is reduced by 2% of net family income over $40,000. For senior households with net family income of $63,500 or more, no rebate can be claimed.
Please note that tax credits change constantly, so ensure that you have up to date information by visiting the Manitoba government’s site provided below. Please also refer to the disclaimer notice below.
For more information, please visit MB government website: https://www.gov.mb.ca/finance/tao/eptc.html
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