Progressive Conservatives are calling on the Manitoba government to more than double the province’s basic personal exemption, saying the move would provide meaningful affordability relief for families facing rising living costs.
Progressive Conservative finance critic Lauren Stone, who is also the MLA for Midland, said the party is pushing to raise Manitoba’s Basic Personal Exemption to $30,000, which would allow Manitobans to earn more income before paying provincial income tax.
The basic personal exemption is the amount of income a person can earn before paying provincial income tax.
Stone said the proposed increase could save a single-income family about $1,500 annually, or approximately $3,000 for dual-income households.
“As we know, families across Manitoba are feeling the squeeze of the cost-of-living crisis Manitobans are facing right now,” she said. “The cost of living is increasing faster than our paycheques, and it’s no doubt families are falling behind. This would put hundreds of dollars into the pockets of hardworking Manitoban families, allowing them to spend their money in their communities and boosting local economies.”
Manitoba’s current basic personal exemption sits at $15,780, below neighbouring Saskatchewan’s exemption of $20,381 and Alberta’s $22,769.
Stone said Manitoba is currently the only province not increasing its basic personal exemption or maintaining indexation tied to inflation.
The NDP government paused indexation in 2025, meaning tax brackets no longer automatically rise alongside inflation. Stone argued that without indexation, some Manitobans may end up paying more income tax even if wage increases simply keep pace with rising costs.
“Every other province is either increasing the exemption amount for their citizens and/or bringing in indexation,” she said. “Manitoba is the only province that is doing the opposite.”
Stone said rising costs for groceries, fuel, utilities and other household expenses continue to place pressure on Manitoba families.
“People need those extra dollars in their pocket,” she added. “These are basic needs Manitobans have, and those are real dollars and affordability relief that could go a long way.”
She described the proposal as a “fair and common-sense approach” that would benefit most Manitobans.
The PCs introduced the proposal during the provincial government’s spring budget session. Stone said the party is willing to compromise with the NDP government in order to move affordability legislation forward before the end of the spring sitting.
She suggested the province could increase the exemption to $21,000 initially to match Saskatchewan and British Columbia levels if the government is unwilling to support the full $30,000 proposal immediately. The $21,000 would increase to one-third of the of the PC’s goal, and she expects the partial increase would cost a maximum of $350 million annually.
“Raising the exemption will attract new investment and grow the tax base, as well as further allowing us to cut government waste,” she said.
“We are ready to support and bring their budget bill to a vote, but only if it includes meaningful affordability measures like a stronger basic personal exemption.”
Stone added that organizations including the Canadian Taxpayers Federation and the Canadian Federation of Independent Business have publicly supported increasing the exemption.
Gage Haubrich, Canadian Taxpayers Federation prairie director, said Manitobans deserve and need to get all the tax relief they can get, acknowledging they pay the highest provincial taxes in Western Canada.
“Increasing the basic personal exemption is a great thing for taxpayers because that means that every taxpayer in Manitoba can earn more money before having to pay taxes, reducing their overall tax burden,” he said. “Bracket creep is a massive burden to Manitobans because it hikes their taxes every year through stealth. Because of bracket creep, inflation can automatically bump taxpayers into a higher income tax bracket and increase their tax bills. It’s a stealth tax hike because Manitobans pay more every year because of inflation, not because politicians vote on a tax increase.”
He explained the government needs to be doing as much as possible to alleviate the burden, noting raising the basic personal exemption is what Manitobans need right now.
“Life is only getting more expensive for Manitobans and they need any and all tax relief available for the government to give.”
Manitoba Finance Minister Adrien Sala acknowledged affordability remains a major concern for many Manitobans and said the NDP government has focused on targeted relief measures.
The province has introduced a temporary fuel tax holiday, a permanent fuel tax reduction, lower middle-class income taxes and expanded education property tax credits.
Through the Budget Implementation and Tax Statutes Amendment Act (BITSA), the government is also proposing to eliminate PST on groceries, provide free childcare for lower-income families and introduce free transit for Manitoba students.
While basic groceries are already PST exempt in Manitoba, the proposed legislation would remove PST from grocery-store food items that currently carry the tax, including many prepared foods, snack foods and beverages, while restaurant meals and non-food household items would still remain taxable.
“We know Manitobans need the support now,” Sala said. “I think the combination of tax reductions and credits that we brought forward are helping to provide the targeted relief that Manitobans need.”
Sala said rising grocery prices remain one of the province’s largest affordability challenges and pointed to the proposed grocery PST exemption as a key measure aimed at helping households manage costs.
He added that if BITSA does not pass before the end of the spring legislative session, some affordability measures could be delayed until the fall.
With only weeks remaining in the spring sitting, both parties continue to pressure each other over competing affordability measures as Manitobans face ongoing financial pressures.
