New year, deeper pockets needed

Changes to daily living expenses in the new year are bringing new challenges to Winnipeggers and Manitobans already burdened by the cost of living.

Getting around in the city by public transit got more expensive Thursday, and the cost of vehicle insurance will rise on April 1.

Winnipeg Transit’s standard adult cash fare increased by a dime to $3.45. Youth and seniors will now be charged $2.95, also up 10 cents compared to 2025 rates. Discounts remain in place for peggo card users, though electronic fares also rose to $3.10 for adults, $2.30 for youths and $1.55 for seniors.

Monthly passes also got more expensive: $119.35 for adults, $88.55 for youth and $59.70 for seniors. Short-term passes are also more expensive: a 24-hour adult peggo e-pass climbed to $11.45, and youth and senior versions rose to $8.50 and $5.75, respectively. A seven-day adult e-pass now sells for $31.

Students attending post-secondary institutions will pay $95.50 for a monthly pass, and a four-month semester pass has increased to $324.65. Meanwhile, riders enrolled in the city’s low-income WINNpass program will see fares rise to $1.55 per e-cash trip or $59.70 per month.

Paper fares and related products are also affected. Single-ride paper tickets now cost $3.10 for adults, $2.30 for youth and $1.55 for seniors. The price of a photo peggo smart card has edged up to $11.80, and a Transit-issued photo ID costs $4.25.

Manitoba Public Insurance will introduce a 1.77 per cent increase to basic insurance rates in April.

For the average private passenger vehicle, it works out to an extra $21.89 per year, or roughly $1.82 a month.

MPI is also raising its basic insurance deductible from $750 to $1,000.

A four per cent Manitoba Hydro rate increase took effect Thursday. The interim rate hike was announced Tuesday by the Public Utilities Board in response to the Crown utility’s drought-related losses and its need to maintain, upgrade and expand the power grid.

“It is an understandable response from Hydro’s regulator to send a message that the drought is being taken seriously,” the Consumers Coalition said in an email Wednesday.

The increase in electricity rates will be challenging for many people who already have to make difficult choices alongside the rising cost of other essentials, said the coalition that represents Manitoba Harvest, the Aboriginal Centre of Winnipeg, the Manitoba branch of the Consumers Association of Canada and the Manitoba Seniors Equity Action Coalition.

The coalition argued at Public Utilities Board hearings that a smaller increase was in order, because Hydro hadn’t done enough to manage its expenses.

“Hydro’s costs continue to escalate at rates well above the rate of inflation and our clients strongly believe Hydro must examine its own costs before seeking increases from its customers,” said the coalition’s submission.

For tenants, the Manitoba government has set the rent increase guideline at 1.8 per cent this year.

The province uses a formula tied to the consumer price index to determine the annual rent increase guideline that’s announced each April. The guideline applies to most residential rental properties, including apartments, but does not apply to units that rent for $1,670 or more per month and various types of social housing.

Tenants must receive written notice of a rent increase at least three months before it takes effect.

A number of tax changes for 2026 were outlined in the provincial budget.

A payroll tax cut took effect Thursday. Annual thresholds will be adjusted where businesses with payrolls at or under $2.5 million will be tax-exempt.

The payroll threshold below which businesses pay a reduced effective rate will increase to $5 million from $4.5 million.

The tax credit for homeowners has increased to $1,600 from $1,500. The credit replaced the school tax rebate and education property tax credit.

The maximum tax credit for renters has increased to $625 from $575, with a top-up for seniors rising to $357 from $328.

When provincial campgrounds open in the new year, expect to pay more for yurts, cabins and some other types of campsites. The nightly fee for a yurt is set to rise to $65 from $56. Fees for a range of cabins are increasing as well. A four-bed cabin in Camp Morton Provincial Park is going up to $85 a night from a little over $70.

Prime Minister Mark Carney’s first budget increases the lifetime capital gains exemption to $1.25 million for qualifying small business shares and farm and fishing properties, retroactive to June 25, 2024.

Federal income tax brackets will rise by two per cent in 2026 to keep pace with inflation, with rates ranging from 14 per cent on income up to $58,523, to 33 per cent on income over $258,482. The tax-free savings account contribution limit remains $7,000.

Canada will also enter a third year of enhanced Canada Pension Plan contributions. The first CPP income limit rises to $74,600, resulting in a maximum employee contribution of $4,230.45, with employers matching that amount, while a higher second limit increases contributions on upper earnings. Employment Insurance premiums will also rise, with the maximum employee contribution increasing to $1,123.07 and the employer share to $1,572.30.

fpcity@freepress.mb.ca