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Payroll Deductions Tables - CPP, EI, and income tax deductions - Manitoba

T4032-MB(E) Rev. 25

This guide uses plain language to explain the most common tax situations. If you need more help, contact 1-800-959-5525.

Table of contents

Section A

Section B

Section C

Section D

Section E

What's new as of January 1, 2025

The major changes made to this guide since the last edition are outlined.

This guide reflects some income tax changes recently announced which, if enacted as proposed, would be effective January 1, 2025. At the time of publishing, some of these proposed changes were not law. We recommend that you use the new payroll deductions tables in this guide for withholding starting with the first payroll in January 2025.

Second additional CPP contributions (CPP2)

As per Canada Pension Plan Regulations Subsection 5.1 (1), for the year 2024 and each subsequent year, pensionable earnings between the Year’s Maximum Pensionable Earnings (YMPE) and a second earnings ceiling, referred to as the Year’s Additional Maximum Pensionable Earnings (YAMPE), are subject to CPP2 contributions. As of 2025, the YAMPE will be approximately 14% above the YMPE, changing from approximately 7% in 2024.

Provincial legislative updates

On April 2, 2024, the province of Manitoba announced that starting in 2025, Manitoba basic personal amount (BPAMB) will be gradually reduced for individuals with net income between $200,000 and $400,000. The BPAMB will be reduced to zero for individuals earning a net income of $400,000 and above. This may cause these employees’ personal tax credits for the year to change, which could result in employees submitting a new TD1MB.

Payroll Deductions Tables

You can download Guides T4008, Payroll Deductions Supplementary Tables, and T4032, Payroll Deductions Tables, from our website at canada.ca/payroll. You can also choose to print only the pages or information that you need.

Payroll Deductions Online Calculator (PDOC)

For your 2025 payroll deductions, we strongly recommend using our PDOC. The online calculator makes it faster and easier to calculate payroll deductions. The calculator also uses exact salary figures and provides more accurate calculations.  It calculates payroll deductions for the applicable province (except Quebec) or territory for the most common pay periods.

PDOC is available at canada.ca/pdoc.

Let us notify you

We provide a digital service that can notify you immediately, free of charge, of any changes for payroll deductions.

To subscribe, visit our website at canada.ca/cra-email-lists and enter your business's email address for each mailing list that you want to join.

Special Notice

Payroll Deductions Tables (T4032)

The Canada Revenue Agency is no longer publishing the paper and CD versions of the Guide T4032, Payroll Deductions Tables. The digital versions of the guide continue to be available on our website at canada.ca/payroll.

Who should use this guide?

This guide is intended for the employer and payer. It contains tables for federal and provincial tax deductions, CPP contributions and EI premiums. It will help you determine the payroll deductions for your employees or pensioners.

The provincial and federal tables are designed to accurately calculate the deductions provided by the CPP additional contributions in most situations. However, for the following situations, we recommend using the PDOC for more accurate calculations:

If the tables are used in these situations, it may result in over or under deduction of federal and provincial taxes during the year.

For more information on deducting, remitting, and reporting payroll deductions, go to the following employers' guides:

These guides are available on our website at canada.ca/taxes.

Note

Refer to the 2024 edition of Payroll Deductions Tables to resolve any pensionable and insurable earnings review (PIER) deficiencies that we identify in processing your 2024 T4 return.

What if your pay period is not in this guide?

This guide contains the most common pay periods: weekly, biweekly (every two weeks), semi-monthly, and monthly. If you have unusual pay periods, such as daily (240 working days), or 10, 13, or 22 pay periods a year, see the Guide T4008, Payroll Deductions Supplementary Tables, or the PDOC to determine tax deductions.

Which provincial or territorial tax table should you use?

Before you decide which tax table to use, you have to determine your employee's province or territory of employment. This depends on whether you require the employee to report for work at your place of business.

If the employee reports for work at your place of business, the province or territory of employment is considered to be the province or territory where your business is located.

To withhold payroll deductions, use the tax table for that province or territory of employment.

If you do not require the employee to report for work at your place of business, the province or territory of employment is the province or territory in which your business is located and from which you pay your employee's salary.

For more information and examples, see Chapter 1, "General Information," in Guide T4001 Employers' Guide – Payroll Deductions and Remittances.

Federal tax for 2025

Indexing for 2025

For 2025, the federal income thresholds, the personal amounts, and the Canada employment amount have been increased based on changes in the consumer price index.

The federal indexing factor for January 1, 2025 is 2.7%. The tax credits corresponding to the claim codes in the tables have been indexed accordingly. Employees will automatically receive the indexing increase, whether or not they file Form TD1, 2025 Personal Tax Credits Return.

Tax rates and income thresholds

For 2025, the federal tax rates and income thresholds are:

Chart 1 – 2025 Federal tax rates and income thresholds
Annual taxable income ($) from Annual taxable income ($) to Federal tax rate, R Constant ($), K
0.00 57,375.00 0.1500 0
57,375.01 114,750.00 0.2050 3,156
114,750.01 177,882.00 0.2600 9,467
177,882.01 253,414.00 0.2900 14,803
253,414.01 and over 0.3300 24,940

Canada Employment Amount

The non-refundable tax credit for CEA is built into the federal payroll deductions tables. The federal CEA is the lesser of:

  • $1,471 and
  • the individual’s employment income for the year

The maximum annual non-refundable tax credit is $220.65.

Pension income is not eligible for this credit. If you are paying pension income, use the PDOC to calculate the tax deduction.

Basic personal amounts

The federal personal amounts for 2025 are:

Basic personal amounts
Maximum basic personal amount ($) Minimum basic personal amount ($)
16,129 14,538

For more detailed information on the personal amounts, go to Form TD1.

Manitoba tax for 2025

Manitoba indexing for 2025

For 2025, the provincial income thresholds and personal amount have been indexed. It is changed based on changes in the consumer price index.

The indexing factor for January 1, 2025, is 1.2% The tax credits corresponding to the claim codes in the tables have been indexed accordingly. Employees will automatically receive the indexing change, whether or not they file Form TD1MB, 2025 Manitoba Personal Tax Credits Return.

Tax rates and income thresholds

For 2025, Manitoba's tax rates and income thresholds are:

Chart 2 – 2025 Manitoba tax rates and income thresholds
Annual taxable income ($) from Annual taxable income ($) to Provincial tax rate, V Constant ($) KP
0.00 47,564.00 0.1080 0
47,564.01 101,200.00 0.1275 927
101,200.01 and over 0.1740 5,633

Personal amounts

For 2025, the Manitoba non‑refundable personal tax credits are:

2025 Manitoba non refundable personal tax credits
Basic personal amount ($) Maximum spouse or common-law partner amount ($) Maximum amount for an eligible dependant ($)
15,969 9,134 9,134

For more detailed information on the personal amounts, see Form TD1MB, 2025 Manitoba Personal Tax Credits Return.

Canada Pension Plan (CPP) and Employment Insurance (EI)

CPP contributions for 2025

CPP contributions
CPP Year’s Maximum Pensionable Earnings (YMPE) Basic Exemption Year’s Maximum Contributory Earnings (YMCE) Employee and Employer Contribution Rate Maximum Employee and Employer Contribution
CPP base contribution 71,300.00 3,500.00 67,800.00 0.0495 3,356.10
First additional CPP contribution 71,300.00 3,500.00 67,800.00 0.0100 678.00
CPP contributionFootnote 1 71,300.00 3,500.00 67,800.00 0.0595 4,034.10

Second additional CPP contribution for 2025

Second additional CPP contribution
  Year’s Maximum Pensionable Earnings (YMPE) Year’s Additional Maximum Pensionable Earnings (YAMPE) Pensionable earnings subject to Second Additional Contribution Second Additional Employee and Employer Contribution Rate Maximum Second Additional Employee and Employer Contribution
Second additional CPP contribution 71,300.00 81,200.00 9,900.00 0.0400 396.00

You stop deducting CPP and CPP2 (if applicable) when the employee reaches their maximum annual contribution for the year. For more information, see Chapter 2, “Canada Pension Plan contributions” in Guide T4001 Employers’ Guide – Payroll Deductions and Remittances.

Note

As an employer, you must remit the employer’s and employee’s share of CPP and CPP2 contributions.

EI premiums for 2025

EI premiums for 2025
EI Maximum Annual Insurable Earnings Employee Contribution Rate Employer Contribution Rate Maximum Annual Employee Premium Maximum Annual Employer Premium
Canada except QC 65,700.00 0.0164 0.02296 1,077.48 1,508.47

You stop deducting EI when the employee reaches their maximum annual premium. For more information, see Chapter 3, “Employment Insurance premiums,” in Guide T4001 Employers’ Guide – Payroll Deductions and Remittances.

Note

As an employer, you must remit the employer’s and employee’s share of EI premiums.

Personal tax credits returns (TD1 forms)

You may have to ask your employees or your pensioners to complete a federal and a provincial personal tax credits return using a federal Form TD1 and a provincial Form TD1.

For more information, see Chapter 5, "Deducting income tax," in Guide T4001 Employers' Guide – Payroll Deductions and Remittances.

Claim codes

The total personal amount an employee claims on a TD1 form will determine which claim code you use. The claim amounts that correspond to the federal claim codes are not the same as the claim amounts that correspond to the provincial claim codes. See Chart 3 and Chart 4.

Explanation of claim codes

Claim code 0

This code represents no claim amount. If the federal claim code is “0” because the employee is a non-resident, the provincial claim code must also be “0.” This code may also be used if the employee indicated they have more than one employee or payer at the same time and have entered “0” on the front page of Form TD1 for 2025.

Claim codes 1 to 10

The claim code amounts do not appear on either the federal or the provincial TD1 form.

You match the "Total claim amount" reported on your employee's or pensioner's TD1 forms with the appropriate claim codes. Then, you look up the tax for the employee's pay under the claim code in the federal and provincial tax tables for the pay period.

Indexing of claim codes amounts

The credits that apply to each federal and provincial claim code have been automatically increased in the tax tables by the indexing factor for the current year. If your employee did not complete the federal and provincial TD1 forms for 2025, you continue to deduct income tax using the same claim code that you used last year.

Chart 3 – 2025 Federal claim codes

Chart 4 – 2025 Manitoba claim codes

Form TD1X, Statement of Commission Income and Expenses for Payroll Tax Deductions

If your employees want you to adjust their tax deductions to allow for commission expenses, they have to complete Form TD1X, Statement of Commission Income and Expenses for Payroll Tax Deductions.

You deduct tax from your employees' commission pay using the "Total claim amount" on their TD1 forms in the following situations:

How to use the tables in this guide

Use the tables in this guide to determine the CPP contributions, EI premiums, federal tax, and provincial tax that you will deduct from your employees' remuneration.

Canada Pension Plan tables

Section B is split into two tables: Section B(i) – CPP contributions table and Section B(ii) – Second additional CPP contributions table. Section B(ii) provides the CPP2 contributions that you are required to withhold from your employee’s pay. CPP2 contributions are required for pensionable earnings between the YMPE ($71,300) and the YAMPE ($81,200).

Use the following steps to determine the CPP contributions and if applicable, CPP2 contributions.

Step 1. Use Section B(i) to determine CPP contributions. If the maximum CPP contribution of $4,034.10 is reached, proceed to Step 2.

Note

In the pay period where maximum CPP contribution is reached, you may be required to use both Section B(i) and Section B(ii).

Step 2. Once the maximum CPP contribution is reached, use the following formula to determine the “Pay” range for Section B(ii) to determine the first CPP2 contribution:

Step 3. Use Section B(ii) to determine the remaining CPP2 contributions, until the maximum CPP2 contribution is reached. The maximum CPP2 contribution for 2025 is $396.00. For the last payment made in the year, proceed to Step 4 if the annual pensionable earnings is between YMPE and YAMPE.

Step 4. Section B(ii) uses $0.05 increments for the CPP2 contributions. As a result, for employees with an annual pensionable earnings between YMPE and YAMPE, it may be required to calculate the CPP2 contributions for the last payment in the year. This is to avoid CPP2 under or over-contributions.

To calculate the CPP2 contributions for the last pay period in the year:

Example of an employee earning more than the YAMPE

An employee is earning $3,000.00 per pay period. There are 26 pay periods in the year since this employee is getting paid biweekly. The employee’s maximum CPP and CPP2 contributions are $4,034.10 and $396.00 respectively.

Example of an employee earning more than the YAMPE
Pay period Section B(i) Pay subject to CPP contributions Section B(ii) Pay subject to CPP2 contributions
1-23 $3,000.00    
24 Until maximum is reached $700.00Footnote 2 
25     $3,000.00
26     Until maximum is reached

Section B(i) – CPP contributions table

The annual basic exemption is built into the CPP tables.

Section B(ii) – Second additional CPP contributions table

Section C – EI premiums table

Tax deductions tables

If you are using the income tax tables in this guide to determine your employees' and pensioners' total tax deductions, you have to look up the amounts in the federal tax table and the provincial tax table.

To determine the total tax you deduct for the pay period, you must add the federal and provincial tax amounts.

Even if the period of employment for which you pay a salary is less than a full pay period, you must continue to use the tax deductions table that corresponds to your regular pay period.

Section D – Federal tax deduction table

Section E – Provincial tax deduction table

Example

You are an employer in Manitoba. Sara, your employee, earns $1,020 a week in 2025. She has a federal claim code 1 and a provincial claim code 1.

To determine Sara’s federal tax deductions, you look at the weekly federal tax deductions table and find the range for her weekly salary, which is 1,019-1,027. The federal tax deductions for $1,020 weekly under claim code 1 is $91.65.

To determine Sara’s provincial tax deductions, you use the weekly provincial tax deduction table. In the Manitoba tax deductions table, the provincial tax deduction for $1,020 weekly under claim code 1 is $71.10.

Sara’s total tax deduction is $162.75 ($91.65 + $71.10). This amount of taxes will be included in your remittance to us.

Additional information about payroll deductions

Deducting tax from income not subject to CPP contributions or EI premiums

We have built the tax credits and tax deductions for CPP contributions and EI premiums into the federal and provincial tax deductions tables in this guide. However, certain types of income, such as pension income, are not subject to CPP contributions and EI premiums. As a result, you will have to adjust the amount of federal and provincial income tax you are deducting.

To determine the amount of tax to deduct from income not subject to CPP contributions or EI premiums, use the Payroll Deductions Online Calculator, available at canada.ca/pdoc. On the "Salary calculation" and/or on the "Commission calculation" screen, go to Step 3 and select the "CPP exempt" and/or "EI exempt" option before clicking on the "Calculate" button.

Step-by-step calculation of tax deductions

You can use the following step-by-step calculations to calculate the tax deductions for your employee or pensioner.

The example shows you how to determine the amount of tax to deduct from all income.

However, if you design your own payroll program or spreadsheets to calculate tax deductions, do not use either of these calculations. Instead, see Guide T4127, Payroll Deductions Formulas.

Example – Annual Pensionable Income Below YMPE

This example applies to a person who earns $1,200 weekly and contributes $80 to a registered retirement savings plan (RRSP). This person claims the basic personal amount. The CPP contribution is $67.40 and the EI premium is $19.68 for this pay period.

CPP contributions = 0.0595 × ($1,200 – ($3,500/52)) = $67.40

EI premiums = 0.0164 × $1,200 = $19.68

Calculate annual taxable income
Description Sub-amounts Amounts
(1) Gross remuneration for the pay period (weekly)   $1,200.00
(2) Minus    
  • CPP additional contribution ($67.40 × (0.0100/0.0595))
 11.33  
  • the RRSP contributions*
 80.00
− $(91.33)
* This amount has to be deducted at source.    
(3) Net remuneration for the pay period   $1,108.67
(4) Annual net income ($1,108.67 × 52 weeks)   $57,650.84
(5) Minus the annual deduction for living in a prescribed zone, reported on Form TD1   − (0.00)
(6) Annual taxable income   $57,650.84
Calculate federal tax
Description Sub-amounts Amounts
(7) Basic federal tax:
Multiply the amount on line 6 by the federal tax rate (R) based on Chart 1		 $57,650.84
× 0.205

$11,818.42
(8) Minus the federal constant (K) based on the annual taxable income on line 6
(go to Chart 1)		   − (3,156.00)
(9) Federal tax (line 7 minus line 8)   $8,662.42
(10) Minus the federal tax credits:    
  • the total of personal tax credit amounts reported on the federal Form TD1
 $16,129.00  
  • the CPP contributions for the pay period multiplied by the number of pay periods in the year (annual maximum $3,356.10)*
 2,915.64  
  • the EI premiums for the pay period multiplied by the number of pay periods in the year (annual maximum $1,077.48)*
 1,023.36  
  • the Canada employment amount (annual maximum $1,471.00)
 1,471.00  
Total $21,539.00  
* Note
When the maximum CPP contributions or EI premiums for the year is reached, use the maximum amount for later calculations		    
(11) Multiply the total on line 10 by the lowest federal tax rate for the year × 0.15  
(12) Total federal tax credits   − (3,230.85)
(13) Total federal tax payable for the year (line 9 minus line 12)   $5,431.57
Calculate provincial tax
Description Sub-amounts Amounts
(14) Basic provincial tax for Manitoba:
Multiply the amount on line 6 by the provincial tax rate (V) based on Chart 2		 $57,650.84
× 0.1275		  
    $7,350.48
(15) Minus the provincial constant (KP) based on the annual taxable income on line 6 (go to Chart 2)   − (927.00)
(16) Provincial tax on income for Manitoba (line 14 minus line 15)   $6,423.48
(17) Minus the provincial tax credits:    
  • the total of personal tax credit amounts reported on Form TD1MB
 $15,969.00  
  • the CPP base contributions for the pay period multiplied by the number of pay periods in the year (annual maximum $3,356.10)*
 2,915.64  
  • the EI premiums for the pay period multiplied by the number of pay periods in the year (annual maximum $1,077.48)*
 1,023.36  
Total $19,908.00  
* Note
When the maximum CPP contributions or EI premiums for the year is reached, use the maximum amount for later calculations		    
(18) Multiply the total on line 17 by the lowest provincial tax rate for the year × 0.1080  
(19) Total provincial tax credits   − (2,150.06)
(20) Total provincial tax payable for the year (line 16 minus line 19)   $4,273.42
Calculate total tax and the tax deduction for the pay period
Description Sub-amounts Amounts
(21) Total federal and provincial tax deductions for the year (line 13 plus line 20).
If the result is negative, substitute $0.		   $9,704.99
(22) Tax deduction for the pay period:
Divide the amount on line 21 by the number of pay periods in the year (52).		   $186.63

Example – Pensionable Income Above YMPE

This example applies to a person who earns $1,600.00 weekly and claims the basic personal amount. The maximum CPP contribution of $4,034.10 and the maximum EI premiums of $1,077.48 have been reached. In addition, this person has started contributing to CPP2 and has contributed $28.00 year-to-date. The year-to-date pensionable income is $72,000. The CPP2 contribution for this pay period is:

CPP2 contributions - The lesser of:

(i)  $396.00 × (PM/12) – D2 = ($396.00 × (PM/12)) – $28.00 = $368.00

(ii) (PIYTD + PI – W) × 0.04 = ($72,000 + $1,600 – $72,000) × 0.04 = $64.00

Where W = The greater of

(i)  PIYTD = $72,000

(ii) YMPE × PM/12 = $71,300

Calculate annual taxable income
Description Sub-amounts Amounts
(1) Gross remuneration for the pay period (weekly)   $1,600.00
(2) Minus
  • CPP2 contribution

$64.00
−$(64.00)
(3) Net remuneration for the pay period   $1,536.00
(4) Annual net income ($1,536.00 × 52 weeks)   $79,872.00
(5) Minus the annual deduction for living in a prescribed zone, reported on Form TD1   − (0.00)
(6) Annual taxable income   $79,872.00
Calculate federal tax
Description Sub-amounts Amounts
(7) Basic federal tax:
Multiply the amount on line 6 by the federal tax rate (R) based on Chart 1		 $79,872.00
× 0.205

$16,373.76
(8) Minus the federal constant (K) based on the annual taxable income on line 6
(go to Chart 1)		   − (3,156.00)
(9) Federal tax (line 7 minus line 8)   $13,217.76
(10) Minus the federal tax credits:    
  • the total of personal tax credit amounts reported on the federal Form TD1
 $16,129.00  
  • the CPP base contributions for the pay period multiplied by the number of pay periods in the year (annual maximum $3,356.10)*
 3,356.10  
  • the EI premiums for the pay period multiplied by the number
    of pay periods in the year (annual maximum $1,077.48)*
 1,077.48  
  • the Canada employment amount (annual maximum $1,471.00)
 1,471.00  
Total $22,033.58  
*Note
When the maximum CPP contributions or EI premiums for the year is reached, use the maximum amount for later calculations		    
(11) Multiply the total on line 10 by the lowest federal tax rate for the year × 0.15  
(12) Total federal tax credits   − (3,305.04)
(13) Total federal tax payable for the year (line 9 minus line 12)   $9,912.72
Calculate provincial tax
Description Sub-amounts Amounts
(14) Basic provincial tax for Manitoba:
Multiply the amount on line 6 by the provincial tax rate (V) based on Chart 2. 		$79,872.00
× 0.1275

$10,183.68
(15) Minus the provincial constant (KP) based on the annual taxable income on line 6 (go to Chart 2)   − (927.00)
(16) Provincial tax on income for Manitoba (line 14 minus line 15)   $9,256.68
(17) Minus the provincial tax credits:    
  • the total of personal tax credit amounts reported on Form TD1MB
 $15,969.00  
  • the CPP base contributions for the pay period multiplied by the number of pay periods in the year (annual maximum $3,556.10)*

3,356.10		  
  • the EI premiums for the pay period multiplied by the number of pay periods in the year (annual maximum $1,077.48)*
1,077.48		  
Total $20,402.58  
*Note
When the maximum CPP contributions or EI premiums for the year is reached, use the maximum amount for later calculations		    
(18) Multiply the total on line 17 by 10.8% × 0.1080  
(19) Total provincial tax credits   −$(2,203.48)
(20) Total provincial tax payable for the year (line 16 minus line 19)   $7,053.20
Calculate total tax and the tax deduction for the pay period
Description Sub-amounts Amounts
(21) Total federal and provincial tax deductions for the year (line 13 plus line 20).
If the result is negative, substitute $0. 		 
$16,965.92
(22) Tax deduction for the pay period:
Divide the amount on line 21 by the number of pay periods in the year (52).		  
$326.27

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