Education Property Tax Rebate


Budget 2021 Introduces the Education Property Tax Rebate

Manitoba will begin phasing out education property taxes by implementing the Education Property Tax Rebate.

Property owners will receive an Education Property Tax Rebate cheque to reduce a portion of their education property taxes, enabling them to keep more of their hard earned money.  No application is required.


How the rebate works

Residential and farm properties

For 2021, owners of residential and farm properties will receive a 25 per cent rebate of the school division special levy payable. Residential properties include single dwelling units, condos and multiple unit dwellings.

The Education Property Tax Rebate will be based on the school division special levy before the Education Property Tax Credit Advance.


school taxes

As part of the Education Property Tax Rebate, other tax credits and rebates will be proportionally reduced as follows: 


Tax Credit and Rebate Amounts

 

2020

2021

Education Property Tax Credit and Advance

Up to $700

Up to $525

Seniors School Tax Rebate

Up to $470
Minus 2.0% on family net
income over $40,000

Up to $353
Minus 1.5% on family net
income over $40,000

Seniors Education Property Tax Credit

Up to $400
Minus 1.0% of family net income

Up to $300
Minus 0.75% of family net income

Farmland School Tax Rebate

Up to 80% of school tax to
a maximum of $5,000

Up to 60% of school tax to
a maximum of $3,750


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


The examples below demonstrate that residential and farm property owners will be paying 25 per cent less in education property taxes as illustrated below:

school taxes
school taxes


Other properties

Owners of other properties (such as commercial, industrial, railway, institutional, pipelines and designated recreational) will receive a 10% rebate of the total of both the school division special levy and the education support levy payable.

school taxes

Renters

To account for the fact that landlords of residential buildings and not renters will be receiving the Education Property Tax Rebate, the annual rent guidelines will be set at 0% for 2022 and 2023.

Using a 1.6 per cent increase for comparison purposes, monthly rent of $1,200 would remain at $14,400 annually in 2022 versus $14,630.

The example below demonstrates the savings for renters from setting rent guidelines to 0% will offset the reduction in the education property tax credit and protect renters:

school taxes

Rebate Calculator


Questions and Answers


Overview


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.


Tax Credits and Rebates


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


The Education Property Tax Credit Advance will be proportionally reduced by 25% from $700 to $525 in 2021. This ensures that along with the Education Property Tax Rebate that homeowners who receive the Education Property Tax Credit Advance or do not receive it on their property are experiencing a 25% reduction in net education property tax paid.


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 (FSTR) but the percentage eligible and the maximum amount will be decreased proportionately by 25%.  The percentage of education property tax on farm land eligible for the FSTR will decrease from 80% to 60% in 2021 and the maximum FSTR will decrease from $5,000 to $3,750.  The 25% Education Property Tax Rebate applies to education property taxes on farm land and on farm buildings.


Landlords and Renters


Residential tenants qualify for the same tax credits as residential homeowners on their principal residence.  The Education Property Tax Credits, both the basic amount and the income tested amount for seniors, are the same for renters and homeowners. 

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.  To assist this process for residential rental units subject to the annual rent guideline, the guideline will be 0% in 2022 and 0% in 2023.

In addition, funds are being reinvested in programs offered by the Department of Families like shelter assistance and low-income supports for Manitobans most in need, like persons with disabilities.


Education Funding


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.


General Costs and Education Property Tax Rebate Process



The Education Property Tax Rebate is entrenched in legislation. 

Subsequent year Education Property Tax Rebates can be higher than those provided in 2021 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.


Property owners will receive the Education Property Tax Rebate cheque in the same month (or earlier) 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 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.


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 - Consumer Protection and Business Services Division
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 - Consumer Protection and Business Services Division
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.


More Information

Manitoba Government Inquiry
204-945-3744
1-866-MANITOBA
(1-866-626-4862)