Capital Gains Tax in Manitoba
Manitoba’s top provincial rate of 17.4% starts at $100,000 of taxable income, and Manitoba has frozen its bracket thresholds rather than indexing them each year. A gain added to a salary near that line can therefore move much of its taxable part into the top provincial rate.
The taxable part of a gain is set by the inclusion rate, 50%, and it is taxed at your combined federal and Manitoba rate. At the top, Manitoba’s combined rate is 50.40%, so its top capital gains rate is 25.20%. The main capital gains tax calculator covers how gains are taxed everywhere in Canada.
Manitoba Tax Brackets and Your Gain
The three Manitoba tax brackets, and the reason they stopped rising with inflation, are covered on the Manitoba income tax page. Combined with the federal brackets they give the rates below.
Capital Gains Tax Rates in Manitoba
Combined rate and capital gains rate in each income band:
| Taxable Income Range | Combined Marginal Rate | Effective Capital Gains Rate |
|---|---|---|
| Up to $47,000 | 24.80% | 12.40% |
| $47,000 – $58,523 | 26.75% | 13.38% |
| $58,523 – $100,000 | 33.25% | 16.63% |
| $100,000 – $117,045 | 37.90% | 18.95% |
| $117,045 – $181,440 | 43.40% | 21.70% |
| $181,440 – $258,482 | 46.40% | 23.20% |
| Over $258,482 (top bracket) | 50.40% | 25.20% |
Above $100,000, the Manitoba part stays at 17.4% and only the federal rate keeps rising.
Worked Example: Capital Gains Tax in Manitoba
A Winnipeg manager earning $130,000 sells a cottage that was never designated as a principal residence, with a $60,000 capital gain. $30,000 of it is taxable, which takes taxable income to $160,000.
The salary alone is already past Manitoba’s top threshold of $100,000, so the whole taxable gain is taxed at the top provincial rate of 17.4%, and federally at 26% (the bracket from $117,045 to $181,440). Federal tax on the gain is $7,800 and Manitoba tax $5,220: $13,020 altogether, or 21.70% of the $60,000 gain.
The calculation adds the gain on top of the salary at marginal rates, as described on the national capital gains page.
How Manitoba Compares
Saskatchewan’s top capital gains rate is 23.75% and Ontario’s is 26.77%, beside 25.20% in Manitoba. Every other jurisdiction is in the capital gains table by province.
Manitoba’s Basic Personal Amount Phase-Out
A very large gain in Manitoba can cost more than the bracket rates suggest. Since the 2025 tax year, Manitoba's basic personal amount is phased out over net income from $200,000 to $400,000, so someone with net income of $400,000 or more gets none. Because a taxable capital gain is part of net income, a gain that lifts net income into that range also takes away part of the credit, which adds to the provincial tax on the gain. The Manitoba income tax page works through the phase-out.
Related Calculators
- Manitoba income tax: brackets, the basic personal amount and tax at several incomes
- Income tax calculator: combined federal and Manitoba tax on your whole income
- Capital gains on rental property: selling a rental or second property
Sources
The figures and rules on this page come from these sources, last checked against them between September 5, 2026 and October 1, 2026. How we check facts.
- Canada Revenue Agency: Payroll Deductions Formulas - 122nd Edition Effective January 1, 2026
- Canada Revenue Agency: Capital Gains – 2025
- Canada Revenue Agency: Current year tax rates and income brackets (2026) - Personal income tax
- Gouvernement du Québec: Parameters of the Personal Income Tax System for 2026
- Government of Manitoba: Personal Tax Credits