2025 Homeowners Affordability Tax Credit (HATC)

The Government of Manitoba introduced the Homeowners Affordability Tax Credit of up to $1500.00 on the education portion of property taxes. This credit replaces the School Tax Rebate and Education Property Tax Credit for residential properties for the 2025 tax year.

Both the Homeowners Affordability Tax Credit (HATC) and Manitoba School Tax Rebate will be applied directly on municipal property tax statements.

The Homeowners Affordability Tax Credit (HATC) provides savings to homeowners of up to $1500.00 on principal residences effective the 2025 tax year. The HATC applies to principal residences only and can be applied as an advance to the property tax statements. New homeowners will have to designate their principal residence with their municipality to receive the HATC as an advance on their property tax statement. Eligible homeowners who do not receive the HATC on their property tax statement can claim the credit on their personal income tax return.

The amount of the HATC is the lesser of $1500.00 and the gross school taxes on your principal residence.

Effective the 2026 tax year, the maximum HATC will be increased from $1500.00 to $1600.00.  https://www.gov.mb.ca/finance/personal/pcredits.html#hatc

FAQ: Homeowners Affordability Tax Credit and Manitoba School tax Rebate.

1. What changes are being made to school tax rebates and credits on property tax statements for the 2025tax year? 
    – 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, is being eliminated for                  all properties except farm properties. Farm Properties will continue to receive the 50% rebate. 
    – The Education Property Tax Credit (EPTC) is being replaced with the Homeowners Affordability Tax Credit (HATC) and is being increased to a maximum of $1500.00.
    – There is no additional seniors credit as part of the HATC, but the Seniors School Tax rebate continues to be available.
2.  When will the changes be implemented?
     – The changes will be in effect beginning of 2025.
3.  Will the HATC apply to principal residences only?
     -Yes, The HATC will apply to principal residences only. It does not apply to any other properties (rental properties, secondary residences/cottages, commercial properties etc.)
4.  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 Tax Credit based on the duration and cost of rent.
5.  How do I receive the HATC on my property tax statement?
     – Properties currently receiving the EPTC on their property tax statement should automatically be moved over to HATC if there is no ownership change. New home owners will have to                designate their principal residence with their municipality in order to have the HATC applied to their property tax statement. Owners should contact their  municipality for more                        information on how to do so.
     – Note that condominium owners whose properties are individually assessed can receive the HATC on their property tax statement like other homeowners. Owners who live on
       assessed property that contains more than one dwelling unit (duplex, triplex, etc.) cannot receive the HATC on their property tax statement but can claim the HATC on their tax                          return.
6.  Will property owners still have the option to claim the HATC when filing their income tax return, instead of taking it as an advance on their tax bill?
      – Yes, homeowners that are eligible for the HATC may claim it on the income tax return if it is not received on the property tax statement.
7.  How will the the HATC be calculated?
      – The amount of the HATC is the lesser of $1500.00 and the gross school taxes on your principal residence.
8.  What is happening with the Seniors School Tax Rebate?
      – The Seniors School Tax Rebate is being maintained at $235.00 minus 1% on family net annual income over $40,000.00 for principal residences only.
9.  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.

More information can be found on the Province’s website at the following link or by calling the Manitoba Inquiry line at 1-866-626-4862

https://www.gov.mb.ca/finance/personal/pcredits.html#hatc

The application form should still be filled out since we have the ability to pre-register the property for the following years. The property tax statement will then reflect the credit starting the next year, should the province accept the application.

CLICK HERE for the application form and fill in the necessary information. Completed applications can be faxed (204-746-6009), emailed (info@townofmorris.ca) or dropped off at the main office between 9:00 a.m. – 5:00 p.m.