Prince Edward Island Taxes
P.E.I. tax brackets for 2026 including the new 20% rate over $200,000, the $15,000 personal amount, credits, HST and property transfer tax.
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The short version
- Prince Edward Island income tax for 2026 runs from 9.5% to a new 20% bracket on income over $200,000, on top of federal tax. The combined top rate is 53%.
- The new 20% bracket applies for all of 2026. The budget first said 2027; the province corrected it on April 30, 2026, and payroll catches up from July.
- The basic personal amount is $15,000, one of the higher ones in Atlantic Canada.
- Example, salary only: $50,000 pays about $7,590 in total income tax, $100,000 about $24,440, and $200,000 about $68,330: second only to Nova Scotia at each level.
- HST is 15%. Real property transfer tax is 1%, with an exemption for first-time home buyers.
Prince Edward Island Taxes
P.E.I. is small, and its tax system has been busy. It raised its personal amount sharply over the last few years, kept adding brackets, and in 2026 added a top bracket over $200,000, then had to clarify that it started this year, not next. For most Islanders the bottom line is simple: income tax runs on the high side, HST is 15%, and the credits that matter most are paid automatically with federal benefits. The calculator above runs your numbers.
P.E.I. Tax Brackets 2026
| Taxable income | P.E.I. rate | Combined with federal |
|---|---|---|
| Up to $33,928 | 9.5% | about 23.5% |
| $33,928 to $65,820 | 13.47% | about 27.5% to 34% |
| $65,820 to $106,890 | 16.6% | about 37.1% |
| $106,890 to $142,520 | 17.62% | about 38.1% to 43.6% |
| $142,520 to $200,000 | 19% | about 45% to 48.3% |
| Over $200,000 | 20% | about 49.3% to 53% |
Combined rates step up where federal brackets start; CPP and EI on wages are extra. Brackets explained: tax brackets and marginal tax rate. P.E.I. next to its neighbours: Nova Scotia, New Brunswick and the province comparison calculator.
What do P.E.I. taxes mean for you?
Tell the assistant your income, family and age. It works out your P.E.I. tax, including the new top bracket if it applies, and the credits you should be getting.
P.E.I. Credits and Benefits
| Program | Who and how much | How |
|---|---|---|
| Low-income tax reduction | Lower-income individuals and families | Automatic on your return |
| P.E.I. Sales Tax Credit | Up to $310 single or $365 for couples and single parents. From November 2026 it becomes the P.E.I. essentials benefit, with a $175 minimum | Paid with the Groceries and Essentials Benefit |
| Age, pension and caregiver amounts | Seniors and caregivers | On your return; see seniors' credits |
| Children's wellness and volunteer firefighter credits | Families and volunteers | On your return |
Federal benefits come too: the Canada child benefit and, for seniors, OAS and GIS. Payment days: benefit payment dates.
Want your own numbers? Pick Prince Edward Island in the free tax problem solver, enter your family income and children, and it estimates the P.E.I. child benefit and sales tax credit alongside the federal credits. Nothing you enter leaves your browser.
Other P.E.I. Taxes
- HST: 15% (5% federal, 10% provincial); see sales tax by province.
- Real property transfer tax: 1% of the greater of the price or assessed value, with an exemption for first-time buyers. Non-residents buying land may need approval under the Lands Protection Act.
- Probate: a fee of roughly 0.4% of estates over $100,000; see probate vs income tax.
- Small business corporate rate: 1% on the first $600,000; see corporate tax rates.
- Cottages: non-resident and non-owner-occupied property pays higher property tax; selling one: cottage capital gains.
P.E.I. Tax Questions
What are the P.E.I. tax brackets for 2026?
9.5% up to $33,928, 13.47% to $65,820, 16.6% to $106,890, 17.62% to $142,520, 19% to $200,000, and 20% above, on top of federal tax.
When does the new 20% P.E.I. tax rate start?
January 1, 2026. The April 2026 budget first indicated 2027, and the province clarified on April 30, 2026 that it applies to all of 2026. Payroll deductions catch up from July.
What is the top marginal tax rate in P.E.I.?
53% combined federal and P.E.I., on income over about $258,000.
What is the P.E.I. basic personal amount for 2026?
$15,000.
Do first-time buyers pay P.E.I. real property transfer tax?
Eligible first-time home buyers are exempt. Other buyers pay 1% of the greater of the purchase price or the assessed value.
Sources: CRA, Tax rates and brackets; KPMG, P.E.I. rolls back effective date of new top rate; KPMG, 2026 P.E.I. budget highlights. Checked October 2026. Examples come from our 2026 rules engine. Property transfer tax, the first-time buyer exemption, probate fees and credit amounts were summarized from secondary sources and not confirmed for 2026.
Last reviewed October 11, 2026 against CRA and Government of Canada sources. How we check our facts.