PEI Income Tax 2026 | Prince Edward Island Tax Brackets & Rates
Updated
Prince Edward Island Income Tax 2026
Prince Edward Island uses a 6-bracket progressive tax system. PEI provincial rates range from 9.5% to 20%, applied on top of federal income tax. Island residents also pay 15% HST on most purchases — one of the highest sales tax rates in Canada.
PEI Tax Brackets 2026
Provincial Tax Rates
Each portion of taxable income
Rate
$0.00 to $33,928.00
9.5%
$33,928.01 to $65,820.00
13.47%
$65,820.01 to $106,890.00
16.6%
$106,890.01 to $142,520.00
17.62%
$142,520.01 to $200,000.00
19%
Over $200,000.01
20%
Source: Canada Revenue Agency – Canadian income tax rates for individuals, 2026. Verified September 5, 2026.
Combined Federal + PEI Rates
Each portion of taxable income
Combined Federal + Prince Edward Island Rate
Up to $33,928.00
23.5%
$33,928.00 to $58,523.00
27.47%
$58,523.00 to $65,820.00
33.97%
$65,820.00 to $106,890.00
37.1%
$106,890.00 to $117,045.00
38.120000000000005%
$117,045.00 to $142,520.00
43.620000000000005%
$142,520.00 to $181,440.00
45%
$181,440.00 to $200,000.00
48%
$200,000.00 to $258,482.00
49%
Over $258,482.00
53%
Combined marginal rate = federal rate + Prince Edward Island rate at each income level, computed directly from 2026 bracket data (not a separately-maintained table). Source: Canada Revenue Agency – Canadian income tax rates for individuals and the provincial revenue agency, verified September 5, 2026.
Tax by Income Level
Taxable Income
PEI Tax
Federal Tax
Total Tax
Effective Rate
$30,000
$1,425
$1,897
$3,322
11.1%
$50,000
$3,963
$4,697
$8,660
17.3%
$75,000
$7,618
$9,268
$16,886
22.5%
$100,000
$11,768
$14,393
$26,161
26.2%
$125,000
$16,103
$19,955
$36,058
28.8%
$150,000
$20,611
$26,455
$47,066
31.4%
$200,000
$30,111
$40,012
$70,123
35.1%
Figures apply the basic personal amounts (federal $16,452 x 14%; PEI $15,000 x 9.5%) as non-refundable tax credits against gross bracket tax, matching how CRA actually calculates tax owing.
PEI Tax Credits
Non-Refundable Credits
Credit
2026 Amount
Basic personal amount
$15,000
Spouse or common-law partner
Up to $12,740
Eligible dependant
Up to $12,740
Age amount (65+)
Up to $6,510
Disability amount
$6,890
Caregiver amount
Up to $2,446
Volunteer firefighter / search & rescue
$3,000
Credits are applied at the lowest PEI bracket rate (9.5%) to reduce provincial tax owing.
Up to $110/year for low-income residents; $55 per dependent child
PEI political contribution tax credit
75% of first $400 contributed to a registered PEI political party
Low-income tax reduction
Refundable, up to $200 single/$400 family – available regardless of housing tenure, not tied to rent paid
PEI vs Other Provinces at $100,000 Income
Province
Provincial Tax
Federal Tax
Total Tax
Effective Rate
BC
$5,902
$14,393
$20,295
20.3%
Ontario
$6,378 (incl. surtax)
$14,393
$20,771
20.8%
Alberta
$6,954
$14,393
$21,347
21.3%
New Brunswick
$10,308
$14,393
$24,701
24.7%
Quebec
$13,629
$12,018
$25,647
25.6%
PEI
$11,768
$14,393
$26,161
26.2%
PEI has some of the highest provincial income tax rates in the country. The gap is most pronounced above $65,820 where the 16.6% provincial rate applies.
Tax Planning in PEI
RRSP Savings at $100,000 Income (Marginal Rate: 37.1%)
RRSP Contribution
Tax Saved
Net Cost of Contribution
$5,000
$1,855
$3,145
$10,000
$3,710
$6,290
$18,000
$6,678
$11,322
$27,000 (approx. max)
$10,017
$16,983
Investment Income at $100,000 in PEI
$10,000 Income Type
PEI Tax
Federal Tax
Total Tax
Interest / employment
$1,660
$2,050
$3,710
Eligible dividends
$270
$1,100
$1,370
Capital gains (50% inclusion)
$830
$1,025
$1,855
Eligible dividends carry a gross-up and federal dividend tax credit that significantly reduces total tax. Capital gains are taxed at half the marginal rate. Interest income receives no preferential treatment.
PEI Sales Tax (HST)
Tax Component
Rate
Federal GST
5%
PEI provincial component
10%
Total HST
15%
PEI charges 15% HST on most goods and services — the same rate as New Brunswick and Newfoundland and Labrador. Nova Scotia cut its HST to 14% effective April 1, 2025.
The figures and rules on this page come from these sources, last checked against them between September 5, 2026 and September 24, 2026. How we check facts.