Sales taxes vary according to your province and can make things complicated, not to mention more expensive in the checkout line. Depending on the province you live in sales tax can be referred to as Provincial Sales Tax (PST), Retail Sales Tax (RST) and Quebec Sales Tax (QST). If you live in Manitoba, here’s how the Manitoba sales tax work.
What Is The Manitoba Sales Tax Rate?
In Manitoba, the provincial government applies RST and GST (General Sales Tax) to most items and services that are for purchase. The Retail Sales Tax is Manitoba’s name for the Provincial Sales Tax (PST).
The current sales tax rates in Manitoba are:
| RST | 7% |
| GST | 5% |
| Total Sales Tax Rate | 12% |
How To Calculate The Manitoba Sales Tax?
To calculate the Manitoba sales tax, simply follow this formula:
| Purchase Price Of Item | $100 |
| Multiply the purchase price of the item by the RST rate | $7 ($100 x 7%) |
| Multiply the purchase price of the item by GST rate | $5 ($100 x 5%) |
| Add The GST + RST (Total Sales Tax Cost ) | $12 |
| Total Cost Of Item With Sales Tax | $112 |
Are The Items Exempt From The Manitoba Sales Tax?
As a Manitoba resident, you may qualify for exemptions or rebates on certain types of sales tax. These deductions are defined under the province’s Retail Sales Tax Act and are different from the ones that the federal government provides on a national level.
Here are some of the goods and services that aren’t taxed on a provincial level in Manitoba:
- Agricultural feeds
- Ambulances
- Books (including audiobooks and ebooks)
- Femine hygiene products
- Health and medical products (prescription drugs, household medical aids, etc.)
- Supplies for babies and children (clothes, car seats, etc.)
- Used clothes or furniture that costs less than $100
Are First Nations Exempt From Paying RST In Manitoba?
If you’re part of a registered First Nations community in Manitoba, you are exempt from paying the usual 7% RST on any goods or services that you buy on First Nations lands.
Are You Charged The Manitoba Sales Tax If You Make An Online Purchase From A Store In Another Province?
Before buying something online, find out how much it will cost once taxes are added to it. As mentioned, sales taxes vary based on the province or territory where the service is being carried out or where the item is getting delivered to.
Online Purchases From A Store In Ontario
If you make a purchase online from a store in Ontario and have it shipped to Manitoba, you must pay the province’s standard 7% RST rate, plus the federal rate of 5%.
Despite, Ontario’s sales tax rate being higher (13%), you won’t be subject to these since the services being rendered are to your province. That 13% (1% higher than Mantioba’s total tax rates) is a combination of an 8% provincial sales tax and a 5% federal sales tax.
How Do I Know Which Tax Rate To Pay?
The vendor is usually responsible for applying the right tax rate (depending on the location or the purchase destination). The one exception would be if you bought a car in another province/territory and drove it back to Manitoba. In this case, you’ll have to pay Manitoba’s RST rate and fill out special paperwork in order to take the car home.
Do You Qualify For the GST/HST Tax Credit In Manitoba?
The GST/HST Tax Credit is a tax-free benefit for Canadian residents who have low to moderate incomes. For the 2022 base year (payment period from July 2023 to June 2024) eligible Manitoba residents can qualify for up to:
- $467 for single individuals
- $612 for people who are married or in common-law relationships
- $161 for each child/dependent below the age of 19
Those with incomes equal to or greater to the following will not be eligible for the credit. The income threshold varies slightly if you have children.
- $49,166 for single individuals
- $52,066 for married individuals or common-law couples with no children
GST/HST Tax Credit Payment Dates In MB
If you qualify, the GST/HST Tax Credit gives you a quarterly payment to help offset the sales taxes you have to pay throughout the year. If you qualify for other government benefits, these payments may be combined with them and show up on your bank statement under various acronyms such as Canada FPT.
| GST/HST Tax Credit Payment Dates |
| January 5th |
| April 5th |
| July 5th |
| October 4th |
Other Manitoba Tax Credits
Manitoba citizens can also qualify for a variety of provincial tax credits, such as:
Manitoba Education Property Tax Credit
Using this tax credit, renters and homeowners can qualify a tax credit to offset their property taxes for homeowners and provide savings for renters. It can only be claimed once a year per dwelling.
Seniors’ School Tax Rebate
This tax rebate is for Senior Manitobans (age 65 or above) who are paying school taxes and presently earning less than $63,500 a year. For the 2023 base year, the maximum rebate you can qualify for is $353.
Green Energy Equipment Tax Credit
If you install solar heating, biomass fuel or gasification energy equipment or a geothermal heat pump system in your property, you may receive a tax credit of up to 15%. The percentage varies according to the type of equipment or system you put in.
How Businesses Deal With Manitoba Sales Tax
If you’re a business owner in Manitoba, you must register to collect certain types of federal and provincial sales taxes from your customers, including but not limited to:
- RST and GST – Pretty much all Manitoba businesses have to register for RST and GST once they start earning over a specific gross revenue level. Small businesses that don’t earn more than $30,000 over four consecutive calendar quarters might be exempt from this rule. This is because they’re suppliers.
- Out of Province Taxes – Remember, businesses must apply sales tax according to where they provide their products or services. So, if a client buys something at your physical business, you apply the appropriate GST/RST. If you deliver it to a customer in another province, you charge sales tax based on their provincial rates.
FIND OUT HOW TO GET A:
Purchasing Something In Or From Manitoba?
Then don’t forget to factor in all the different Manitoba sales taxes that may apply, since they can definitely drive up the final cost of the product or service you’re buying. Every business needs to charge these kinds of sales taxes in order to stay legitimate. While the merchant has to register and apply for them, it’s your responsibility to pay them.
