The Canadian Taxpayers Federation released its annual New Year’s Tax Changes report today to highlight major federal and provincial tax changes in 2025.

“Premier Wab Kinew needs to extend his gas tax cut and save Manitobans from a New Year’s tax hike hangover,” said Gage Haubrich, CTF Prairie Director. “Ottawa is hiking taxes and making life more expensive so Kinew needs to keep Manitobans saving by extending the gas tax cut again.”

Gas Tax: The Manitoba government removed its 14 cent per litre gas tax in January 2024. On Jan. 1, 2025, the provincial gas tax is scheduled to go back up. A two-vehicle family that fills up a minivan and a pick-up truck every two weeks will have saved about $587 by the end of December.

Education Property Tax: The Manitoba government is replacing the 50 per cent school property tax rebate with a $1,500 tax credit for principal residences in 2025. This means that some Manitobans could see their property tax increasing next year, depending on the value of their home.

Income Tax: The Manitoba government is increasing taxes for Manitobans with incomes over $200,000 by phasing out the basic personal amount (i.e. the amount of money you can earn before you have to start paying income taxes).

The federal government is increasing taxes in 2025.

Payroll taxes: The federal government is raising the mandatory Canada Pension Plan and Employment Insurance contributions in 2025. These payroll tax increases will cost a worker up to an additional $403 next year.

Carbon tax: The federal carbon tax is increasing to about 21 cents per litre of gasoline, 25 cents per litre of diesel and 18 cents per cubic metre of natural gas on April 1. The carbon tax will cost the average Manitoba household $274 in 2025-26, even after the rebates, according to the Parliamentary Budget Officer.

Alcohol taxes: Federal alcohol taxes will increase by two per cent on April 1. This alcohol tax hike will cost taxpayers $40.9 million in 2025-26, according to Beer Canada.

Following Budget 2024, the federal government also increased capital gains taxes and imposed a digital services tax and an online streaming tax.

“The federal government is taking more money out of Manitoba taxpayers’ pockets and making life more expensive in the new year,” said Haubrich. “Prime Minister Justin Trudeau needs to stop hiking taxes and instead deliver tax relief to make life more affordable.”

You can find the CTF’s New Year’s Tax Changes report HERE.