Finance

Homeowners Affordability Tax Credit


In 2025, the Education Property Tax Credit (EPTC) was replaced with a new $1,500 Homeowners Affordability Tax Credit (HATC).

For 2026, the maximum HATC amount increased from $1,500 to $1,600, and for 2027, the maximum amount will increase from $1,600 to $1,700.


Frequently Asked Questions – Homeowners Affordability Tax Credit


What changes have been made to school tax rebates and credits for the 2025, 2026 and 2027 tax years?

Key changes include:

  • For the 2025 tax year, the Education Property Tax Credit (EPTC) was replaced with the Homeowners Affordability Tax Credit (HATC), which provides a maximum of $1,500 in school tax savings on principal residences.
  • For the 2026 tax year, the maximum HATC amount increased from $1,500 to $1,600.
  • For the 2027 tax year, the maximum HATC amount will increase from $1,600 to $1,700, and the maximum HATC benefit will be reduced for properties assessed over $1,000,000.
  • The School Tax Rebate, which provided a 50% rebate on school taxes for residential and farm properties, and a 10% rebate on school taxes for other properties, was eliminated for all properties except farm properties. Farm properties will continue to receive the 50% rebate.
  • There is no additional seniors’ credit as part of the HATC, but the Seniors’ School Tax Rebate continues to be available (more information below).

 

When will the changes be implemented?

The changes are in effect as of the beginning the respective tax years.

 

How is the HATC calculated?

For 2025, the amount of the HATC is the lesser of $1,500 and the gross school taxes on your principal residence.

For 2026, the amount of the HATC is the lesser of $1,600 and the gross school taxes on your principal residence.

For 2027, the amount of the HATC is the lesser of $1,700 and the gross school taxes on your principal residence for properties assessed under $1,000,000. For properties assessed over $1,000,000, the maximum benefit will be reduced by $3.40 per $1,000 above $1,000,000. Properties assessed at $1,500,000 or more will no longer receive the credit.

 

Does the HATC apply to principal residences only?

Yes, the HATC applies to principal residences only. It does not apply to any other properties (rental properties, secondary residences/cottages, commercial properties, etc.).

 

What is a principal residence?

A principal residence is a single residential dwelling unit in Manitoba that is owned by an individual or their spouse or common-law partner and that is the primary residence of the individual or the individuals cohabiting spouse or common-law partner.

A residence is a person’s primary residence taking into consideration factors such as:

  • the amount of time spent by the individual at the dwelling unit in relation to the amount of time spent at any other dwelling unit,
  • the address of the individual shown on their income tax return, driver's licence, motor vehicle registration, registration cards for health and health insurance, bank and credit card statements and statements of account for utilities.

An individual (and their spouse or common-law partner) cannot have more than one principal residence.

 

Am I eligible for the HATC as a renter?

No, as a renter, you are not eligible for the HATC. However, you may claim the Renters Affordability Tax Credit.

 

Are condominium owners eligible for the HATC?

Yes, condominium owners whose properties are individually assessed can receive the HATC as an advance on their property tax statement like other homeowners. Owners who reside in an assessed property that contains more than one dwelling unit (duplex, triplex, etc.) cannot receive the HATC as an advance on their property tax statement but can claim the HATC on their tax return.

 

How do I receive the HATC as an advance on my property tax statement?

In order to receive the HATC as an advance on your property tax statement, you must have self-declared your principal residence with your municipality. Contact your municipality for information on how to declare your principal residence. See the following links for Winnipeg, Brandon and other municipalities:

Most eligible Manitoba homeowners will automatically have their principal residence declaration carried forward from last year and do not need to file a new declaration for the HATC.

Homeowners that have not previously self-declared their principal residence with their municipality are encouraged to do so as soon as possible to help ensure that the HATC is applied to their property tax statement.

 

What can I do if I have received my property tax statement and it does not include the HATC Advance?

Homeowners who are eligible for the HATC but did not receive it as an advance on their property tax statement may claim it on their personal income tax return.

 

Can my spouse or common-law partner and I claim the HATC if we live in separate properties?

No, both you and your spouse or common-law partner cannot each claim the HATC on separate properties. A residential dwelling unit may only be designated as the principal residence of one individual or their cohabiting spouse or common-law partner at a time. This means that if you and your spouse or partner live in different residences, only one of those properties can be designated as the principal residence for the purpose of claiming the HATC.

 

What is happening with the Seniors’ School Tax Rebate?

The Seniors’ School Tax Rebate is being maintained at $235 minus 1.0% on family net annual income over $40,000 for principal residences only.

This Rebate is claimed on the personal income tax return.

 

How will the School Tax Rebate on farm properties be calculated?

There are no changes to how the School Tax Rebate on farm properties works. It will continue to be 50 per cent of gross school taxes and will continue to be applied directly on the property tax statement.

 

Is there still a School Tax Rebate for commercial property?

No, the School Tax Rebate for commercial property is no longer in effect for the 2025 and subsequent tax years.

 

How will these changes impact monthly property tax payment requirements, such as the City of Winnipeg’s Tax Instalment Payment Plan (TIPP)?

Monthly payment plans are determined by your local municipality based on your annual property tax requirements and how your municipality applies the HATC. Please reach out to your local municipality for information on your monthly property tax payment plans.

 

Can I receive the HATC if I own a mobile home?

Yes, if you own a mobile home and it is situated on land that you or your spouse or common-law partner do not own, you may be eligible to claim either of the following amounts as school taxes under the Homeowners Affordability Tax Credit on your personal income tax return.

For the mobile home itself:

  • If the mobile home is an assessable property as defined in the Municipal Assessment Act, you can claim the school taxes, or
  • If the mobile home is situated in a licensed mobile home park, you can claim 50% of the licence fee payable on the mobile home under a by-law of a municipality for the licensing of mobile homes.

Additionally, for the land the mobile home is situated on:

  • If the mobile home is situated on land that is rented or leased, you can claim 10% of the land rental fees payable for the mobile home.

Note: If you (or your spouse or common-law partner) rent a mobile home as your principal residence, you may be eligible to claim your rent under the Renters Affordability Tax Credit. A resident of a mobile home cannot claim both the Homeowners Affordability Tax Credit and Renters Affordability Tax Credit.

 

 

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