Manitoba Sales Tax Rate History
Manitoba has maintained a separate Retail Sales Tax alongside the federal GST since 1991 and has never joined the HST system. The RST rate held at 7% for more than two decades before a temporary increase to 8% in 2013 and a return to 7% in 2019. This page documents every rate milestone and the reverse-calculation formulas that apply in each period.
Rate Milestones
| Effective Date | Tax | Rate | Notes |
|---|---|---|---|
| Jan 1, 1991 | GST | 7% | GST introduced federally, replacing Manufacturers' Sales Tax (MST) |
| Jan 1, 1991 | MB RST | 7% | Retail Sales Tax alongside GST |
| Jul 1, 2006 | GST | 6% | Federal GST reduced 1 point |
| Jan 1, 2008 | GST | 5% | Federal GST reduced a further 1 point |
| Jul 1, 2013 | MB RST | 8% | RST increased from 7% to 8% by NDP government for infrastructure funding; designated a temporary 10-year measure |
| Jul 1, 2019 | MB RST | 7% | RST reduced back to 7% by PC government; 10-year infrastructure funding period ended early |
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Historical Context
1991: GST and Manitoba RST
When the federal Goods and Services Tax replaced the Manufacturers' Sales Tax on January 1, 1991, Manitoba retained its Retail Sales Tax at 7% alongside the new federal levy. Manitoba calls its provincial sales tax the Retail Sales Tax rather than PST, though it functions identically to other provincial sales taxes — it is a single-stage consumer tax administered by Manitoba Finance rather than a value-added tax. Manitoba has never entered the HST framework and is classified as a non-participating province under the Excise Tax Act. The GST is administered by the Canada Revenue Agency; the RST is administered by Manitoba Finance — Taxation Division.
2006–2008: Federal GST Reductions
The federal government reduced the GST by one percentage point on July 1, 2006 (from 7% to 6%) and again on January 1, 2008 (from 6% to 5%), under the Harper government. Manitoba's 7% RST rate did not change during this period. The combined effective rate on a pre-tax purchase fell from 14% to 13% to 12% as the federal component was cut.
2013: RST Increase and Infrastructure Funding
On July 1, 2013, the NDP government of Premier Greg Selinger increased the Manitoba RST from 7% to 8%. The increase was explicitly framed as a temporary measure to fund a 10-year infrastructure investment program, with the stated intention that the rate would return to 7% on July 1, 2023, once the infrastructure funding period concluded. The 2013 budget projected that the 1-point increase would generate approximately $277 million in additional annual revenue dedicated to roads, bridges, and flood protection infrastructure.
2019: Early Reduction to 7%
On July 1, 2019, the Progressive Conservative government of Premier Brian Pallister reduced the Manitoba RST from 8% back to 7% — exactly six years after the increase, and four years ahead of the originally announced 2023 end date. The government described it as the largest tax cut in Manitoba's history at the time, returning approximately $325 million annually to Manitobans. The PC government argued that the infrastructure funding program could be continued through other fiscal measures without maintaining the elevated RST rate. The 7% RST rate that came into effect on July 1, 2019 remains in effect today.
RST Is Not a Value-Added Tax
Like British Columbia PST and Saskatchewan PST, Manitoba RST is not a value-added tax. Businesses cannot claim input tax credits on RST paid on business inputs — RST is a real cost that flows through to the business and is not recoverable after the fact. Only the federal GST portion of a Manitoba purchase qualifies for ITC recovery for CRA-registered businesses. This distinction affects the bookkeeping treatment of every taxable purchase made in Manitoba and is the most operationally important difference between Manitoba's tax structure and the HST provinces.
Reverse Calculation by Era
When working backwards from a gross total to extract the pre-tax amount, the divisor depends on the combined GST and RST rates in effect at the time of the transaction. Manitoba has had five distinct combined rates since 1991.
| Era | Tax Structure | Reverse Formula |
|---|---|---|
| Jan 1991–Jun 2006 | GST 7% + RST 7% | Pre-tax = Total ÷ 1.14 |
| Jul 2006–Dec 2007 | GST 6% + RST 7% | Pre-tax = Total ÷ 1.13 |
| Jan 2008–Jun 2013 | GST 5% + RST 7% | Pre-tax = Total ÷ 1.12 |
| Jul 2013–Jun 2019 | GST 5% + RST 8% | Pre-tax = Total ÷ 1.13 |
| Jul 2019–present | GST 5% + RST 7% | Pre-tax = Total ÷ 1.12 |
For current transactions, divide by 1.12 to isolate the net pre-tax amount. To split the taxes: GST = Total ÷ 1.12 × 0.05; RST = Total ÷ 1.12 × 0.07. Note that the Jul 2006–Dec 2007 era and the Jul 2013–Jun 2019 era both produce a 1.13 divisor, but the underlying tax structures differ — in the first case it is GST 6% + RST 7%, in the second it is GST 5% + RST 8%. The ITC-eligible portion (GST only) is different in each.
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Calculations are arithmetic estimations only and do not constitute formal tax or corporate auditing advice. All figures must be verified against current CRA and Manitoba Finance guidelines before filing.