Budget 2021 Introduces the Education Property Tax Rebate

The Education Property Tax Rebate implements Manitoba's commitment under the $2,020 Tax Rollback Guarantee to begin phasing out education property taxes. 

Eliminating education property taxes will provide Manitobans with much needed tax relief.  Manitoba is the only province to impose locally determined education property taxes.  The phasing out of these taxes will put Manitobans on an equal footing with other provinces that fund education from general revenues. 

Residential and farm property owners will receive a rebate of 25% of their education property tax payable in 2021.

Other property owners (such as commercial, industrial, institutional, railways, pipelines and designated recreational) will receive a rebate of 10% of their education property taxes payable in 2021.

Residential and farm property owners will see the Education Property Tax Rebate calculated on the school division special levy and community revitalization levy, prior to any tax credits or rebates.

Other property owners will see the Education Property Tax Rebate calculated on the total of the school division special levy and the education support levy.

The rebate amount of 10% for commercial and other properties considers the significant government assistance provided to the business community during the COVID-19 pandemic and potential need for further assistance to the sector depending on the state of the pandemic. 

In addition, education property taxes are a tax deductible expense for businesses and businesses also benefit by receiving a 10% rebate on both the school division special levy and the education support levy.

All existing education property tax credits and rebates remain in place but they are proportionally reduced by 25%.

Property owners will see a 25% reduction in net educational property taxes paid.  This is because the Education Property Tax Rebate is based on gross education property taxes payable, before the tax credits are calculated.

The Education Property Tax Credit Advance will be proportionally reduced by 25% from $700 to $525.

All property owners will receive the Education Property Tax Rebate. If you currently do not pay education property tax on your property assessment because of existing tax credits, the Education Property Tax Rebate will be cash in hand when your property tax is due and you will continue to receive benefits that will fully offset school taxes.

Farm property owners will still have to apply for the Farmland School Tax Rebate but the percentage eligible and the maximum amount will be decreased proportional by 25%.  The percentage will decrease from 80% to 60% and the maximum amount will decrease from $5,000 to $3,750.

Residential tenants qualify for the same tax credits as residential homeowners.  The proportional reduction to tax credits is the same for renters and homeowners. 

As landlords will be receiving the Education Property Tax Rebate, the rent guideline will be 0% in 2022 and 0% in 2023, as landlords will be receiving the Education Property Tax Rebate.

In the immediate term, the Education Property Tax Rebate will offset requests by landlords for above guideline rent increases and in the long term, the elimination of education property taxes will lower operating costs and is expected to be reflected in the rent levels. 

In addition, funds that are saved by the province with the proportional reduction of tax credits for residential  tenants are being reinvested in programs like shelter assistance and low-income supports for Manitobans most in need, like persons with disabilities.

The phasing out of education property taxes will not impact Manitoba’s efforts to transform its education system into a modern, responsive and ambitious system that is classroom focused, student centered and parent friendly, or on its commitment to provide a guaranteed increase of over $1.6 billion in education funding over the next four years. 

School division levies will continue to apply until the tax is eliminated.  The Education Property Tax Rebate is funded 100% provincially and not through school division special levies.

$248 million.

The Education Property Tax Rebate will be entrenched in legislation.

Subsequent year Education Property Tax Rebates can be higher but not lower.

Property owners will be required to continue to pay their education property taxes on their property tax statement.  The reduction is being provided by the Education Property Tax Rebate, which will be received by property owners before their property taxes are due.

Cheques ensure that property owners are aware that the Manitoba government is refunding 25% or 10% of their education property taxes back in 2021.

Also, by not reducing education property taxes directly on the property tax bill ensures school divisions continue to receive school taxes as revenue, which facilitates their budget planning.

Yes. The government intends to increase the Education Property Tax Rebate to residential and farm property owners to 50% of the education property taxes payable.

Future increases in rebates to other properties and all property types will be reviewed as part of future year budgets.

Cheques will be mailed in the month property taxes are due, between June and December.

A request for a replacement cheque can be made by contacting Manitoba Government Inquiries at 1-866-626-4862. 

In situations where property is owned by multiple parties, property owners should verify with those parties if they received the Education Property Tax Rebate.

If no property owners have received a cheque, a request should be made by contacting Manitoba Government Inquiries at 1-866-626-4862.

Cheques will be mailed automatically - no application is required by property owners.

Direct deposit would require property owners to provide the Province with banking information, which would delay payments.