PEI Sales Tax Calculator (HST)
This PEI sales tax calculator finds the HST that applies to a purchase in Prince Edward Island and gives you the total after-tax amount. Switch to reverse mode to work out the pre-tax price from a total you’ve already paid.
Results are estimates as rounding may differ from the total by a couple of cents. PEI charges 15% HST on most goods and services.
Prince Edward Island Sales Tax (HST)
Prince Edward Island uses the Harmonized Sales Tax (HST) system, combining federal and provincial sales taxes into a single 15% rate charged at the point of sale.
| Component | Rate |
|---|---|
| Federal GST | 5% |
| Provincial HST portion | 10% |
| Total HST | 15% |
PEI adopted HST on April 1, 2013 — the last Atlantic province to harmonize after Nova Scotia, New Brunswick, and Newfoundland. Before harmonization, PEI charged 10% Provincial Sales Tax (PST) separately from the federal GST.
What’s Taxable and Exempt in PEI
Zero-Rated (0% HST)
| Category | Examples |
|---|---|
| Basic groceries | Bread, milk, meat, vegetables, fruit, eggs |
| Prescription drugs | Medications dispensed by pharmacist |
| Medical devices | Wheelchairs, hearing aids, prosthetics |
| Exports | Goods shipped outside Canada |
| Farming inputs | Feed, seed, and fertilizers for farm use |
Exempt (No HST, no input credits)
| Category | Examples |
|---|---|
| Residential rent | Monthly rent for homes and apartments |
| Health services | Doctor visits, dental care, physiotherapy |
| Childcare services | Licensed daycare |
| Educational services | Tuition at qualifying institutions |
| Financial services | Bank fees, insurance premiums |
| Used residential housing | Resale homes |
| Ferries | Confederation Bridge tolls (paid separately) |
Fully Taxable at 15%
| Category | Examples |
|---|---|
| Restaurant meals | All dining, takeout, and food services |
| Alcohol and tobacco | Wine, beer, spirits, cigarettes |
| New vehicles | Cars, trucks, ATVs, motorcycles |
| Electronics | TVs, computers, phones |
| All clothing | Including children’s clothing |
| Home heating | Electricity, heating oil, propane |
| Gasoline | Plus additional provincial fuel tax |
| Accommodations | Hotels, motels, vacation rentals |
| Services | Repairs, landscaping, professional services |
Note: Like most Atlantic provinces, PEI does not provide point-of-sale exemptions for children’s clothing, books, or home heating fuel.
PEI HST Rebates and Credits
PEI Sales Tax Credit
Low and modest-income PEI residents receive the PEI Sales Tax Credit along with their federal GST/HST credit. This non-taxable quarterly payment helps offset HST paid on everyday purchases.
| Family Status | Maximum Annual Credit |
|---|---|
| Single adult | ~$110 |
| Couple | ~$165 |
| Per child under 19 | Additional amount |
You receive this automatically by filing your annual tax return — no separate application needed.
PEI New Housing Rebate
Buyers of new or substantially renovated homes in PEI may claim a rebate on the provincial HST portion:
| Home Value | Maximum Provincial Rebate |
|---|---|
| Up to $400,000 | Up to $3,000 |
| $400,000–$450,000 | Proportionally reduced |
| Over $450,000 | No provincial rebate |
This complements the federal GST New Housing Rebate. The combined rebates can save thousands on a new home purchase.
Rental Property Rebate
Landlords who build or substantially renovate qualifying rental housing may claim a rebate of a portion of HST paid on construction costs.
PEI vs Other Atlantic Provinces
| Province | Total HST | HST Credit | Children’s Clothing | Home Heating |
|---|---|---|---|---|
| PEI | 15% | Yes | Taxable | Taxable |
| Nova Scotia | 15% | Yes | Exempt (under $100) | Taxable |
| New Brunswick | 15% | Yes | Taxable | Taxable |
| Newfoundland | 15% | Yes | Taxable | Taxable |
All four Atlantic provinces charge the same 15% HST rate — the highest combined rate in Canada (tied with each other).
HST Impact on Tourism in PEI
Tourism is PEI’s second-largest industry, and visitors pay the full 15% HST on:
- Accommodations — Hotels, B&Bs, campgrounds, vacation rentals
- Dining — Restaurants, lobster suppers, food tours
- Activities — Golf courses, attractions, boat tours
- Souvenirs — Gifts, crafts, Anne of Green Gables merchandise
The 1% Provincial Marketing Levy (included in accommodation rates, not separate from HST) funds Tourism PEI’s marketing efforts.
Visitors from outside Canada can claim HST rebates on some purchases through the Foreign Convention and Tour Incentive Program (FCTIP) for eligible group tours.
HST for Businesses in PEI
Registration Requirements
| Annual Taxable Sales | Requirement |
|---|---|
| Under $30,000 | Optional (small supplier status) |
| $30,000+ | Mandatory registration |
Seasonal businesses — common in PEI’s tourism industry — must still register if they exceed $30,000 in any four consecutive quarters, even if concentrated in summer months.
Filing Frequency
| GST/HST Collected Annually | Filing |
|---|---|
| Under $1,500 | Annual |
| $1,500–$3,000 | Quarterly |
| Over $3,000 | Monthly |
Quick Method Option
Small businesses (under $400,000 revenue) can use the Quick Method to simplify HST remittance:
| Business Type | Remittance Rate |
|---|---|
| Retail/purchasing businesses | 4.4% of taxable revenue |
| Service businesses | 8.8% of taxable revenue |
Cost of Living Considerations
While PEI has Canada’s highest sales tax rate (tied with other Atlantic provinces), several factors offset this:
| Factor | Impact |
|---|---|
| Lower housing costs | Home prices significantly below national average |
| Lower income tax rates | Competitive provincial rates |
| Lower property taxes | Typically under 1% of assessed value |
| No large urban premiums | Charlottetown costs less than Halifax or Moncton |
PEI consistently ranks as one of Canada’s most affordable provinces for overall cost of living, despite the 15% HST.
Special Considerations
Confederation Bridge
The Confederation Bridge toll ($50.25+ for passenger vehicles leaving PEI in 2026) is not subject to HST — it’s classified as a toll, not a transportation service. The toll is only charged when leaving the island.
Seasonal Business Planning
Many PEI businesses operate seasonally. Key HST considerations:
- HST registration threshold is based on rolling 12-month periods
- Input tax credits can be claimed year-round even if sales are seasonal
- Annual filers should manage cash flow for year-end HST remittances