PEI Income Tax 2026 | Prince Edward Island Tax Brackets & Rates
Updated
Prince Edward Island Income Tax 2026
Prince Edward Island uses a 5-bracket progressive tax system. PEI provincial rates range from 9.65% to 18.75%, 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
Taxable Income
PEI Rate
Up to $32,656
9.65%
$32,656 – $64,313
13.63%
$64,313 – $105,000
16.65%
$105,000 – $140,000
18%
Over $140,000
18.75%
Combined Federal + PEI Rates
Taxable Income
Federal
PEI
Combined
Up to $32,656
15%
9.65%
24.65%
$32,656 – $55,867
15%
13.63%
28.63%
$55,867 – $64,313
20.5%
13.63%
34.13%
$64,313 – $105,000
20.5%
16.65%
37.15%
$105,000 – $111,733
20.5%
18%
38.5%
$111,733 – $140,000
26%
18%
44%
$140,000 – $155,625
26%
18.75%
44.75%
$155,625 – $173,205
29%
18.75%
47.75%
Over $173,205
33%
18.75%
51.75%
Tax by Income Level
Taxable Income
PEI Tax
Federal Tax
Total Tax
Effective Rate
$30,000
$1,594
$2,813
$4,407
14.7%
$50,000
$4,284
$5,813
$10,097
20.2%
$75,000
$8,005
$10,281
$18,286
24.4%
$100,000
$12,165
$16,181
$28,346
28.3%
$125,000
$16,665
$22,681
$39,346
31.5%
$150,000
$21,540
$29,181
$50,721
33.8%
$200,000
$30,915
$45,681
$76,596
38.3%
Figures are estimates based on 2026 rates before non-refundable credits other than the basic personal amount.
PEI Tax Credits
Non-Refundable Credits
Credit
2026 Amount
Basic personal amount
$13,500
Spouse or common-law partner
Up to $11,475
Eligible dependant
Up to $11,475
Age amount (65+)
Up to $5,308
Disability amount
$9,000
Caregiver amount
Up to $5,000
Volunteer firefighter / search & rescue
$3,000
Credits are applied at the lowest PEI bracket rate (9.65%) to reduce provincial tax owing.
Refundable and Other Credits
Credit
Details
PEI sales tax credit
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
Rental fee credit
PEI residents who rent their primary residence may claim a portion of rent paid
PEI vs Other Provinces at $100,000 Income
Province
Provincial Tax
Federal Tax
Total Tax
Effective Rate
Alberta
$5,900
$16,181
$22,081
22.1%
BC
$5,800
$16,181
$21,981
22.0%
Ontario
$8,190
$16,181
$24,371
24.4%
New Brunswick
$11,000
$16,181
$27,181
27.2%
PEI
$12,165
$16,181
$28,346
28.3%
Quebec
$14,200
$12,500
$26,700
26.7%
PEI has some of the highest provincial income tax rates in the country. The gap is most pronounced above $64,313 where the 16.65% provincial rate applies.
Tax Planning in PEI
RRSP Savings at $100,000 Income (Marginal Rate: 37.15%)
RRSP Contribution
Tax Saved
Net Cost of Contribution
$5,000
$1,858
$3,142
$10,000
$3,715
$6,285
$18,000
$6,687
$11,313
$27,000 (approx. max)
$10,031
$16,969
Investment Income at $100,000 in PEI
$10,000 Income Type
PEI Tax
Federal Tax
Total Tax
Interest / employment
$1,665
$2,050
$3,715
Eligible dividends
$270
$1,100
$1,370
Capital gains (50% inclusion)
$833
$1,025
$1,858
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, Nova Scotia, and Newfoundland and Labrador.