As part of Manitoba Budget 2026 released on March 24, 2026, the Government of Manitoba announced its intention to amend The Tax Administration and Miscellaneous Taxes Act (Manitoba) with amendments effective January 1, 2027. This proposed change follows a commitment made in the Manitoba Budget 2025 to review the land transfer tax (LTT) framework with a view to improving tax fairness and preventing avoidance through tax planning strategies that separate legal and beneficial ownership of real property.
Current legislative framework
Under Part III of the Act, LTT is generally payable upon registration of a transfer in the Manitoba Land Titles Office. A “transfer” is defined broadly in subsection 111(1) of the Act to include circumstances where “land is granted, assigned, conveyed or otherwise transferred,” but excludes a transmission, application, mortgage or caveat. While the Act provides for certain statutory exemptions, LTT is triggered by the registration of a transfer of legal title. This creates opportunities that have historically been used to eliminate LTT, as described below.
Persons transferring real property previously had the ability to transfer beneficial ownership of one or more properties without triggering LTT – while the registered ownership remained unchanged – with the transferee becoming the beneficial owner under a bare trust arrangement or shareholders of the registered owner.
LTT is calculated based on the fair market value (FMV) of the property. The current rates are as follows:
| FMV |
Tax Rate |
Tax Amount |
| First $30,000 |
0% |
$0 |
| Next $60,000 |
0.5% |
$300 |
| Next $60,000 (up to $150,000) |
1% |
$600 |
| Next $50,000 (up to $200,000) |
1.5% |
$750 |
| Above $200,000 |
2% |
2% of amount over
$200,000 |
The uncertain future of LTT amendments
Since no amendments to the Act have been proposed as of yet, it remains unclear whether Manitoba will adopt a new approach or follow the model of other provinces, which have LTT regimes that do not permit the transfer of beneficial ownership without triggering LTT. For example, under section 3 of the Land Transfer Tax Act (Ontario), any disposition of a beneficial interest in land by way of sale, transfer or assignment or any change in entitlement to – or accretion of – a beneficial interest in land triggers LTT as if the interest were a conveyance of land tendered for registration. The tax is payable by every person who acquires a beneficial interest or whose beneficial interest is increased as a result of the disposition. Where LTT is not paid, the Minister may impose penalties of up to 25% of the unpaid tax in cases of fraud or wilful default.
Other provinces with legislation aimed at preventing tax avoidance through disposition of beneficial interests include Quebec and New Brunswick.
Next steps: Planning considerations
Although the 2026 Budget indicated that amendments to the Act are pending, no specific changes have yet been proposed. We will continue to monitor these developments and provide updates as they become available. Those considering any transactions to transfer real property should complete such transactions prior to the anticipated effective date of the proposed amendments.
If you have questions about LTT and the implication of the 2026 Budget, including actions that you may wish to consider prior to January 1, 2027, our Commercial Real Estate and Taxation practice groups would be happy to assist you.
Note: This article is of a general nature only and is not exhaustive of all possible legal rights or remedies. In addition, laws may change over time and should be interpreted only in the context of particular circumstances such that these materials are not intended to be relied upon or taken as legal advice or opinion. Readers should consult a legal professional for specific advice in any particular situation.
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