Manitoba Budget 2026: Small Businesses Seeking Tax Relief, Safety Assurances and Labour Shortage Solutions

As a result of our advocacy, Budget 2025 delivered important wins for small businesses, including raising the Health and Education Levy (payroll tax) threshold to $2.5 million and introducing a $2,500 Business Security Rebate. Yet nearly eight in 10 Manitoba small business owners remain doubtful that the next provincial budget will provide meaningful support, so we are entering the 2026 budget with a focus on securing even more victories.

These are our priorities for 2026:

Taxes
Manitoba entrepreneurs are being weighed down by taxes and fees. We are calling on the government to:

  • Raise the Small Business Corporate Tax Rate threshold from $500,000 to $700,000 to give them the breathing room they need to invest in employees, equipment, and growth;
  • Exempt all capital expenditures from Retail Sales Tax to unlock over $330 million in potential investment across the province; and,
  • Eliminate the Retail Sales Tax (RST) on all types of business insurance (liability, legal expense insurance, etc).
  • Reinstate the 2:1 apprentice-to-journeyperson ratio;
  • Legislate the province’s WCB surplus rebate policy;
  • Work with the federal government to create immigration pathways to allow small businesses can retain the skilled workers they have already trained and invested in; and,
  • Refrain from introducing a mandatory paid sick leave policy.

Crime and Safety
We are calling for the Business Security Rebate to be made permanent and for direct financial support to help cover crime prevention measures and recovery from losses. In the province. Over the long term, we are prioritizing that the government address the root causes of crime by investing in affordable housing, mental health services, and addiction supports to help build safer communities where businesses can grow.

Labour
Labour shortages are strangling growth across the province. According to our latest Monthly Business Barometer® , 44% claim the shortage of skilled labour is the top limitation on their sales and growth. That is why it’s critical for Manitoba to implement fair and practical policies for employers. We are calling on the government to:

Red Tape and Internal Trade
As other provinces have been pushing forward on red tape reduction, Manitoba has moved in the opposite direction. The province must rebuild its commitments to regulatory accountability and reestablish its regulatory budgeting legislation, improving and reporting on its service standards, and publicly tracking compliance costs.

Manitoba should also look to build on recent progress on internal trade to ensure that goods, services, and labour move freely across the country. Join CFIB today to make your voice heard to benefit small businesses in Canada.