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Whether you rent or own your home, it can cost a lot. Homeowners have to pay property taxes, and renters have to pay rent. In Manitoba, you also have to pay school taxes, which only adds to your tax burden. Luckily, the Manitoba government offers a program, called the Education Property Tax Credit (EPTC), to help offset some of the taxes residents must pay.
What Is The Education Property Tax Credit (EPTC)?
The EPTC is a provincial tax credit in Manitoba that is designed to offset some of the school taxes paid by homeowners or a portion of rent paid by renters. If you are a homeowner, you will receive your credit directly on your municipal property tax statement. If you rent, you will need to claim the credit through your income tax return.
How Does The Education Property Tax Credit (EPTC) Work?
Homeowners can claim up to $525 with the EPTC to offset the cost of property taxes. Homeowners can either apply for the credit directly to their municipal property taxes if they notify their municipality before their municipal property tax statement is printed. Or, claim it on their tax return if they notify their municipality after their municipal property tax statement is printed.
How Do Renters Claim The ERTC?
Renters can also claim the EPTC. For them, the EPTC is calculated based on 20% of their rent. Based on this calculation, they can receive up to $525. They can claim the EPTC on their Manitoba Credits Tax Form (Form MB479).
|Education Property Tax Credit and Advance||Up to $700||Up to $525|
|Senior Education Property Tax Credit||Up to $400||Up to $300|
|Seniors’ School Tax Rebate||Up to $470||Up to $353|
|Farmland School Tax Rebate||80% of paid farmland school taxes (up to $5,000)||60% of paid farmland school taxes (up to $3,750)|
Seniors’ School Tax Rebate
The Seniors’ School Tax Rebate is designed to help seniors cover some of their property tax obligations. Seniors can claim up to $353. Only a senior or their spouse / common-law partner can claim this rebate. To be eligible, seniors must:
- Be 65 years of age or older by the end of the year
- Be residents of Manitoba
- Own their home or be responsible for paying the school taxes on their home
- Live in the home they pay property taxes on
Seniors with a yearly income of less than $40,000 may also be eligible for an additional rebate of up to $300. Both seniors who own their own homes or who rent are eligible. This credit must be applied for on your personal income tax return using the Manitoba Income Tax Form MB479 – Manitoba Credits.
Farmland School Tax Rebate
The Farmland School Tax Rebate helps offset property taxes paid on properties assessed as farmland in Manitoba. Landowners must submit an application to the Manitoba Agricultural Services Corporation to receive this rebate. They can receive up to $3,750, which corresponds to up to 60% of the farmland school taxes they pay.
The Education Property Tax Rebate 2021
The province of Manitoba has introduced a new program in 2021, called the Education Property Tax Rebate. Homeowners (residential and farm properties) who qualify for the Education Property Tax Rebate will receive a rebate of 25% of their education property tax payable in 2021. No application is required, a cheque will be sent in the mail during the month their property taxes are due.
It’s also important to note that this rebate will cause the existing education property tax credits like the EPTC to reduce proportionally by 25%. For example, in 2020, the maximum credit you could receive under the Education Property Tax Credit Advance was $700, now it’s $525.
Other property owners will be eligible for the Education Property Tax Rebate as well, except they will only receive a 10% rebate. Other property owners include designated recreational, commercial, institutional, industrial, railways, and pipelines. The 10% rebate will be applied toward their education property taxes. However, do remember that the rebate will not be reflected in the municipal property tax bill, rather, you will receive a 10% rebate in the form of a cheque.
For example, if the total of your net school taxes (includes the school division special levy and the education support levy) costs $10,000, you’ll receive a rebate of $1,000 ($10,000 x 10%) in the form of a cheque.
Who’s Eligible For The Education Property Tax Credit (EPTC)?
To be eligible for the EPTC, you must:
- Be a resident of Manitoba at the end of the year that you are claiming the EPTC
- Pay rent or school taxes on a principal residence in Manitoba
- Be 16 years of age or older at the end of the year
Who Cannot Claim The Education Property Tax Credit (EPTC)?
There are several factors that make you ineligible to claim the EPTC:
- If someone has you listed as a dependent on their Manitoba Tax form (Form MB428)
- If someone is claiming a transfer of part or all of your disability amount on their Manitoba Tax Form (Form MB428)
- If your spouse or common-law partner is claiming a transfer or part or all of your age or disability amounts on their Provincial Amounts Transferred from your Spouse or Common-Law Partner Form (Schedule MB(S2))
- If you were in prison at the end of the year and were there for six or more months during the year
How Do I Claim The Education Property Tax Credit (EPTC)?
To claim the EPTC, you must fill in the “Declaration for the education property tax credit” section of your Manitoba Credits form (Form MB479).
You will receive your cheque for the Education Property Tax Rebate in the month that municipal property taxes are due.
What Is The EPTC Advance?
If you’re a homeowner, instead of waiting for the government to determine if you’re eligible for the EPTC, you can do it yourself. You can notify the municipality where you live of your assessment before they print your property tax statement so that you can have the EPTC applied to your property taxes starting in the year that you notify them.
To be eligible, you must:
- Be a homeowner
- Have your home assessed as a single residential dwelling
- Claim the EPTC Advance only on your principal residence
- Only receive one EPTC Advance credit (i.e. cannot receive it for other homes you own in Manitoba)
How To Claim The EPTC Advance
To claim the EPTC Advance, you have to fill out an EPTC Self-Declaration form provided by your municipality and submit it to them. If you submit this form before your property tax statement is printed, the EPTC is automatically applied to your property taxes. If you submit this form after your property tax statement is printed, you can claim the EPTC on your tax return for that year. After that, the EPTC is automatically applied to your property taxes.
Can I claim the Education Property Tax Credit (EPTC) if I’m renting?
How much can I claim under the Education Property Tax Credit (EPTC)?
Can both me and my spouse claim the Education Property Tax Credit (EPTC)?
Can you claim the Education Property Tax Credit (EPTC) if you received social assistance payments?
Why is the EPTC being reduced?
The Education Property Tax Credit (EPTC) is designed to offset some of the education property taxes paid by homeowners and renters. There are also related credits to help offset some of these taxes, including the Seniors’ Education Property Tax Credit and the Farmland School Tax Rebate. Despite the changes that came in 2021 due to the implementation of the Education Property Tax Rebate Cheque, there will be a rebate in 2022. The Manitoba government will be increasing this rebate to 50% of education property taxes for residential and farm property owners.
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