Homeowners Affordability Tax Credit (HATC)

Starting in the 2025 tax year, the Manitoba Education Property Tax Credit (EPTC) has been replaced with the new Homeowners Affordability Tax Credit (HATC).

The HATC is designed to reduce the school tax payable in Manitoba and can only be claimed on a homeowner’s principal residence.

  • The credit has increased to a maximum of $1,500 in 2025.

  • The School Tax Rebate (which provided a 50% rebate on school taxes for residential and farm properties, and 10% for other properties) is being eliminated for all properties, except farm properties, which will continue to receive a 50% rebate.

  • There is no additional seniors credit as part of HATC. However, the Seniors School Tax Rebate is still available.

  • The HATC applies only to principal residences. It does not apply to rental properties, cottages, commercial properties, etc.

You can claim this credit if you were:

  • A resident of Manitoba on December 31, 2025.

  • 16 years of age or older on December 31, 2025.

  • Paid school taxes on a principal residence (a dwelling unit located in Manitoba that you, your spouse, or common-law partner owned and usually lived in) during 2025.

If one of these situations applies to you, you can also claim this credit:

 

Situations

What can I do?

Lived apart for medical reasons

If you occupied separate residences for part or all of the year (for example, one of you was living in a personal care home), both of you can claim the credit. One person claims the credit for the common residence for the year. The other partner claims it for the other residence for the time you were living apart.

Separated or divorced

Both can claim the tax credit on your separate residences after the separation or divorce. However, only one partner can claim the credit for the family residence you both lived before the separation or divorce.

Spouse passed away

Only the surviving partner can claim this credit for both yourself and the deceased spouse, unless you were separated for medical reasons.

Shared a residence with another tenant

Both can claim part of the credit, but not for the same period of the year. This only applies if you shared the residence with a person other than your spouse or common-law partner.

Important: The total amount that can be claimed on all returns cannot exceed the maximum credit that could be claimed on a single return.

Condominium owners

Condominium owners can receive the HATC on their property tax statement. However, owners who live in a property with more than one dwelling unit (such as a duplex, triplex, etc.) cannot receive the HATC on their property statement. They must claim the credit on their tax return.

Mobile homeowners

Mobile homeowners who live in a mobile home located on a land they or their spouse/common-law partner do not own may be eligible to claim the amounts as school taxes under the HATC.

This credit must be claimed on their tax return, not on their property tax statement.

If the mobile home is:

  • An assessable property (as defined by the Municipal Assessment Act): Claim the credit in school taxes

  • Located in a licensed mobile home park: Claim 50% of the license fee payable under the municipal by-law.

  • Located on a rented or leased land: Claim 10% of the rental fees payable for the mobile home.

Note: If you rent a mobile home as your principal residence, you may be eligible for the Renters Affordability Tax Credit. A resident of a mobile home cannot claim both HATC and Renters Tax Credit.

For more scenarios about who can or cannot claim HATC, see the CRA article.

Starting in 2025, you can claim up to a maximum of $1,500 if:

  • You, your spouse or common-law partner, own the property

  • You use it as your principal residence,

  • The property is a single dwelling unit located in Manitoba.

Note: You must live together in the dwelling as your primary residence to be eligible, and you cannot have more than one principal residence.

 

Deadline to declare to municipality

The deadline to declare your principal residence to your municipality is November 15, 2025.

If you missed this deadline and did not receive the credit on your property statement or as a credit on your property tax account, you can claim this credit on your tax return.

Follow these steps in H&R Block’s 2025 tax software:

Before you begin, make sure that you told us that you lived in Manitoba on December 31, 2025:

  1. On the left navigation menu, under the Credits & deductions tab, click Other.

  1. Under the SPECIFIC CREDITS FOR YOUR PROVINCE heading, select the checkbox labelled Manitoba Homeowners Affordability Tax Credit and Renters Affordability Tax Credit, and click Continue.

  2. When you arrive at the Manitoba Homeowners Affordability/School Tax Credits page, enter the information required into the tax software.