The School Tax Rebate is a rebate on school taxes provided to owners of property in Manitoba. It implements Manitoba's commitment to begin phasing out school taxes.

Eliminating school taxes will provide Manitobans with much needed tax relief. Manitoba is the only province to impose locally determined school 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 50 per cent of their gross school tax payable in 2023, (up from 37.5 per cent in 2022).

Other property owners (such as commercial, industrial, institutional, railways, pipelines and designated recreational) will receive a rebate of 10 per cent of their education property taxes payable in 2023.

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

Other property owners will see the School Tax Rebate calculated on the total of the school division special levy, education support levy and community revitalization levy.

School taxes are a tax deductible expense for businesses, and businesses also benefit by receiving a 10 per cent 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 adjusted to ensure that all residential and farm properties see a net reduction in school taxes of 50 per cent.

This is because the School Tax Rebate is based on gross school taxes payable, before the tax credits are calculated.

As part of the School Tax Rebate, other tax credits and rebates will be adjusted proportionately as follows:

Note: Farm property owners must still apply for the Farmland School Tax Rebate.

The Education Property Tax Credit Advance will be adjusted from a maximum of $437.50 in 2022 to $350 in 2023. Along with the School Tax Rebate, this ensures that all homeowners, regardless of whether or not they receive the Education Property Tax Credit Advance, will see a 50 per cent reduction in net education property tax paid.

All property owners will receive the School Tax Rebate. If you currently do not pay school tax on your property assessment because of existing tax credits, the School 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 (FSTR) but the percentage eligible and the maximum amount will be decreased proportionately by 50 per cent relative to 2020. The percentage of school tax on farm land eligible for the FSTR decrease from 50 per cent in 2022 to 40 per cent in 2023 and the maximum FSTR will decrease from $3,125 in 2022 to $2,500 in 2023. The 50 per cent School Tax Rebate applies to school taxes on farm land and on farm buildings.

The phasing out of school taxes will not affect Manitoba's efforts to transform its education system into a modern, responsive and ambitious system that is classroom focused, student centered and parent friendly. School tax rebates are fully funded through provincial revenues, and School divisions will continue to receive the full value of the education property taxes collected as in previous years.

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

Cheques are valid for six months after the date they are issued. In the event your financial institution does not deposit the cheque it can be returned to:

• Bank Reconciliation
  714-401 York Ave.
  Winnipeg, MB R3C 0P8

Do not write or alter the cheque in any way. You will need to indicate why the cheque is being returned and provide a new mailing address (if applicable).

Total rebates are estimated at $453 million in 2023.

Property owners will be required to continue to pay their school taxes on their property tax statement. The reduction is being provided by the School 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 50 per cent or 10 per cent of their school taxes back in 2023.

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

Property owners will receive the School Tax Rebate cheque in the same month that municipal property taxes are due and after property tax statements are mailed by the local government.

A request for a replacement cheque can be made by contacting Manitoba Government Inquiry 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 School Tax Rebate.

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

A request for the cheque to be validated in the name of the estate or to be re-issued in the name of a surviving property owner can be made returning the original cheque with accompanying proof of the deceased to:

Manitoba Finance
Manitoba Tax Assistance Office
110A - 401 York Avenue
Winnipeg MB  R3C 0P8

Please contact your financial institution regarding what documentation is needed for the cheque to be deposited.

If the financial institution cannot accept the cheque, a request for a replacement cheque can be made by returning the original cheque and providing proof of change of name to:

Manitoba Finance
Manitoba Tax Assistance Office
110A - 401 York Avenue
Winnipeg MB  R3C 0P8

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.