The Mega Deduction in Manitoba

Manitoba corporations pay a combined 9.0% on small business income (federal 9% + provincial 0%) and 27.0% at the general rate (15% + 12%). Every dollar deducted in year one under the Mega Deduction reduces tax by that percentage.

Manitoba charges 0% provincial tax on small business income, so the federal 9% rate is the whole story for CCPCs under the limit.

Tax reduction on a $100,000 purchase, by asset class

Does Manitoba follow the federal Mega Deduction?

Follows the federal rule Manitoba calculates corporate income tax on the same taxable income as the federal return. If the federal measure is enacted as drafted, Manitoba corporations would get the same 100% first-year deduction for provincial purposes. A province can legislate an exception, and we found no Manitoba announcement of one.

Who collects Manitoba corporate tax?

The Canada Revenue Agency administers and collects Manitoba corporate income tax on taxable income allocated to Manitoba.

Has Manitoba said anything about this measure?

No statement on this measure was found in official sources.

Sole proprietors and partners

Manitoba personal income tax is also administered by the CRA, so the same result applies to sole proprietors and partners. The federal draft limits a non-corporate taxpayer to the income from the business or property source the asset is used in, so the deduction cannot create or deepen a loss.

Sources: Manitoba corporate income taxes · Manitoba personal income taxes. The federal measure: Department of Finance announcement · Draft legislative proposals. The Mega Deduction is draft legislation announced 15 September 2026; none of this applies until it is enacted.

What sales tax does to your deductible cost in Manitoba

Manitoba charges GST 5% + RST 7%. The federal GST is recoverable through input tax credits and stays out of the capital cost, but the provincial tax generally is not. That non-recoverable tax becomes part of what the asset cost you, so it is deductible along with the asset.

Manitoba retail sales tax is generally not recoverable, so it forms part of the capital cost and is deductible with the asset. Certain farm implements and manufacturing equipment are exempt. Enter the tax-inclusive figure in the calculator to see the full deduction, not the sticker price.

All asset types in Manitoba

• Computer equipment
• Software
• Manufacturing and processing equipment
• General equipment, tools and furniture
• Commercial vehicles (vans, pickups, work trucks)
• Heavy trucks and tractors
• Zero-emission vehicles
• Patents, licences and acquired IP
• Clean energy and energy conservation equipment
• Data network infrastructure
• Farm machinery
• Construction and contractor equipment
• Medical and dental equipment
• Restaurant and hospitality equipment
• Media production equipment
• Aircraft
• Buildings and additions
• Goodwill, franchises and licences (Class 14.1)
• Passenger vehicles (Class 10.1)
• Qualified liquefaction equipment