2026 · Capital gains · Manitoba

Capital gains tax in Manitoba

Q: What is the capital gains tax rate in Manitoba?

In Manitoba, only 50% of a capital gain is taxable (the federal inclusion rate), and that taxable half is added to your income and taxed at your marginal rate. So the effective rate on a full gain ranges from near 0% at low incomes up to 25.20% at the top bracket — half the top combined marginal rate of 50.40%. The exact figure depends on your other income.

Q: Is the capital gains inclusion rate 50% or 66.7% in 2026?

It is 50% . The proposed increase to a 66.7% inclusion rate on gains over $250,000 was deferred and then cancelled in March 2025 , so all individual capital gains in 2026 are taxed at the 50% inclusion rate. Only half of each dollar of gain is added to your taxable income.

Q: Does the principal residence exemption apply?

Yes — the sale of your principal residence is generally exempt from capital gains tax in every province, including Manitoba. The figures here apply to taxable gains: investments outside registered accounts, a second property or cottage, or a rental. Gains inside an RRSP, RRIF or TFSA are not taxed at all.

In Manitoba, half of every capital gain is taxable (the 50% inclusion rate) and that half is added to your income and taxed at your marginal rate. The effective rate on a full gain tops out at 25.20% — and depends entirely on your other income.

50%inclusion rate (2026)

25.2%top effective rate on a gain

#6/13lowest top rate (better half)

Capital gains calculator Manitoba income tax

Tax on a $50,000 capital gain in Manitoba

A $50,000 gain means $25,000 is taxable. What you pay depends on the income you stack it on top of:

Your other income	Taxable half	Tax on the gain	Effective rate on the full $50,000
$0	$25,000	$6,200	12.4%
$50,000	$25,000	$7,759	15.5%
$100,000	$25,000	$8,682	17.4%
$150,000	$25,000	$9,475	18.9%
$250,000	$25,000	$12,006	24.0%

Capital gains marginal rates in Manitoba (2026)

Your combined federal + Manitoba marginal rate, and the effective capital-gains rate (half of it) at each income band:

Taxable income	Marginal rate	Capital gains rate (½)
$0 – $47,000	24.80%	12.40%
$47,000 – $58,523	26.75%	13.38%
$58,523 – $117,045	33.25%	16.63%
$117,045 – $181,440	37.90%	18.95%
$181,440 – $258,482	43.40%	21.70%
$258,482+	50.40%	25.20%

A large gain can straddle brackets — the taxable half stacks on your income, so part of it may be taxed in a higher band. The calculator handles that.

How Manitoba compares

Capital gains are taxed at half your marginal rate, so the province with the lowest top income-tax rate also has the lowest top capital-gains rate. Across the 13 jurisdictions, Nunavut has the lowest top capital-gains rate (22.3%) and Newfoundland and Labrador the highest (27.4%). Manitoba sits #6 of 13 at 25.2% — in the lower-tax half. Remember this only bites on taxable gains: your principal residence is exempt, and gains inside a TFSA, RRSP or RRIF are never taxed.

Frequently asked questions

What is the capital gains tax rate in Manitoba?

In Manitoba, only 50% of a capital gain is taxable (the federal inclusion rate), and that taxable half is added to your income and taxed at your marginal rate. So the effective rate on a full gain ranges from near 0% at low incomes up to 25.20% at the top bracket — half the top combined marginal rate of 50.40%. The exact figure depends on your other income.

Is the capital gains inclusion rate 50% or 66.7% in 2026?

It is 50%. The proposed increase to a 66.7% inclusion rate on gains over $250,000 was deferred and then cancelled in March 2025, so all individual capital gains in 2026 are taxed at the 50% inclusion rate. Only half of each dollar of gain is added to your taxable income.

How do I calculate capital gains tax in Manitoba?

Take your gain (sale price minus adjusted cost base and costs), include 50% of it in income, and apply your marginal rate. Because the taxable half stacks on top of your other income, a large gain can push part of itself into a higher bracket. Our capital gains calculator runs the exact Manitoba math for your income.

Does the principal residence exemption apply?

Yes — the sale of your principal residence is generally exempt from capital gains tax in every province, including Manitoba. The figures here apply to taxable gains: investments outside registered accounts, a second property or cottage, or a rental. Gains inside an RRSP, RRIF or TFSA are not taxed at all.

Educational only, not tax advice. Manitoba figures combine federal and provincial marginal rates (including surtaxes where they apply) at the 2026 50% inclusion rate; combined-rate data is from TaxTips.ca’s 2026 tables and indexation, cross-checked against the federal brackets we verify at the source. A real return may differ (credits, AMT, the lifetime capital gains exemption). Confirm with the CRA or an accountant.