Manitoba reduced its general Retail Sales Tax rate from 8% to 7% on July 1, 2019. The 7% general rate remains in effect.
Manitoba’s provincial sales tax is officially called Retail Sales Tax (RST), although it is also commonly described as PST.
What changed on July 1, 2019?
The general Manitoba RST rate decreased by one percentage point:
- Before July 1, 2019: 8%
- From July 1, 2019: 7%
The federal 5% Goods and Services Tax did not change. When a purchase is subject to both standard taxes, the combined rate is therefore 12%:
- GST: 5%
- Manitoba RST: 7%
- Combined tax rate: 12%
GST and RST are calculated separately from the selling price before tax.
How much did the rate reduction save?
The reduction lowered Manitoba RST by $1 for every $100 of taxable purchases.
For example:
- A $2,500 taxable purchase generated $175 RST at 7%, compared with $200 at 8%—a saving of $25.
- A $30,000 taxable purchase generated $2,100 RST at 7%, compared with $2,400 at 8%—a saving of $300.
These examples compare only the Manitoba RST amount. The federal GST is calculated separately.
Transition rules
Manitoba published transition rules to determine whether the former 8% rate or the new 7% rate applied around July 1, 2019.
In general, the 7% rate applied to taxable goods purchased after June 30, 2019, including purchases for which only a deposit had previously been paid.
The former 8% rate generally continued to apply to taxable goods purchased before July 1, 2019, even when payment was made later. Specific transition rules also applied to leases, contracts, real property and certain reduced-rate purchases.
These rules are historical and mainly affect transactions made around the 2019 changeover date.
Calculate Manitoba GST and RST
Use the Manitoba GST and RST calculator to calculate:
- the 5% GST amount;
- the 7% Manitoba RST amount;
- the total price including both taxes; or
- the original price and taxes included in a tax-inclusive total.
Data sources
The Budget Implementation and Tax Statutes Amendment Act, 2019