All proposed tax measures are subject to legislative approval.
- on PEI website
Bill 21 - An Act to amend the Income Tax Act (pdf) - first reading May 9, 2025.
See Appendix XII of Estimates of Revenue and Expenditures 2025-2026
| Credit | Current 2025 |
Proposed 2025 |
Proposed 2026 |
| Basic Personal Exemption | $14,250 | $14,650 | $15,000 |
| Spouse or Eligible Dependant Amounts: | |||
| - Maximum | $12,103 | $12,443 | $12,740 |
| - Income Threshold | $1,210 | $1,244 | $1,274 |
| Low income Tax Reduction Threshold | $22,250 | $22,650 | $23,000 |
| 2025 | Proposed 2026 | ||
| Taxable Income | Rate | Taxable Income | Rate |
| $0 to $33,328 | 9.50% | $0 to $33,928 | 9.50% |
| 33,328 to 64,656 | 13.47% | 33,928 to 65,820 | 13.47% |
| 64,656 to 105,000 | 16.60% | 65,820 to 106,890 | 16.60% |
| 105,000 to 140,000 | 17.62% | 106,890 to 142,520 | 17.62% |
| over $140,000 | 19.00% | over $142,520 | 19.00% |
- on PEI website: 2024 Budget Highlights
| 2024 | Proposed 2025 | ||
| Taxable Income | Rate | Taxable Income | Rate |
| $0 to $32,656 | 9.65% | $0 to $33,328 | 9.50% |
| 32,656 to 64,313 | 13.63% | 33,328 to 64,656 | 13.47% |
| 64,313 to 105,000 | 16.65% | 64,656 to 105,000 | 16.60% |
| 105,000 to 140,000 | 18.00% | 105,000 to 140,000 | 17.62% |
| over $140,000 | 18.75% | over $140,000 | 19.00% |
See Appendix VII, Provincial Tax Changes by Calendar Year, in Estimates of Revenue and Expenditures.
Bill 66, An Act to Amend the Income Tax Act (No. 2) received Royal Assent November 29, 2024.
- on PEI website: 2023 Budget Highlights
Bill 14, An Act to Amend the Income Tax Act
Tax Measures:
- on PEI website: Previous Years Budgets
Bill 63, An Act to Amend the Income Tax Act (No.2) Royal Assent May 6, 2022
Bill 64, An Act to Amend the Income Tax Act (No.3) Royal Assent May 6, 2022
Bill 85, An Act to Amend the Income Tax Act (No. 4) Royal Assent December 1, 2022
Tax Measures:
There are other non-tax measures.
2021 Fall Fiscal and Economic Update - November 5, 2021
- on PEI website, no tax changes
- on PEI website: Previous Years Budgets
Bill 37, An Act to Amend the Income Tax Act Royal Assent November 17, 2021
Tax Measures effective Jan 1, 2022:
There are many other non-tax measures.
- on PEI website: Previous Years Budgets
- Bill No. 58, An Act to Amend the Income Tax Act (No. 2) - Royal Assent July 14, 2020.
Tax Measures effective Jan 1, 2021:
- Small Business Tax Reduction to 2% from 3%
- Non-eligible dividend tax credit reduced to 15% from 21%
- Basic Personal Amount increase to $10,500 from $10,000
- Spouse/equivalent to spouse amount increased to $8,918 from $8,481, reduced by spousal/dependant income over $891.
- Tax threshold for low-income Islanders increase to $19,000 from $18,000
- New $500 non-refundable Children's Wellness tax credit
See Budget Highlights (pdf)
2019 PEI Budget - June 25, 2019
- on PEI website: Previous Years Budgets
- after April 23rd election which saw the Progressive Conservatives taking over, with a minority government.
Bill 12, An Act to Amend the Income Tax Act received Royal Assent (became law) July 12, 2019.
Tax highlights:
- Increase basic personal amount from $9,160 to $10,000 for 2020, with proportionate changes to the spouse/equivalent to spouse amounts, which will increase to $8,493.
- Increase the low-income tax reduction threshold from $17,000 to $18,000 for 2020.
- Reduce the small business tax rate from 3.5% to 3.0%, for taxation years which begin on or after January 1, 2020.
2018 Budget - April 6, 2018 - on PEI website
Bill No. 33, An Act to Amend the Income Tax Act
Bill No. 57, An Act to Amend the Income Tax Act (No. 2)
- Small
business tax cut: Rate will decrease by 0.5% effective January 1, 2018
(as per Bill 33)
- the
non-eligible dividend tax credit rate was reviewed, and will not change, as
per the PEI Department of Finance
- New Small Business Investment Grant for 15% rebate on
business investments up to $25,000.
- Basic Personal Amount will increase by $500 for 2018, to
$8,660, and a further $500 for 2019. The spouse and equivalent-to-spouse
(eligible dependant) amounts will increase proportionately.
- Provincial portion of HST on first block of residential
electricity will be rebated directly on electricity bills each month.
- Provincial portion of HST will also be rebated on firewood,
pellets and propane through a point of sale credit or rebate.
2017 Budget Highlights - April 7, 2017 - on PEI website. See also Bill No. 73, An Act to Amend the Income Tax Act.
- Basic Personal Amount increased by 2% for
2017 to $8,160
- Spouse and Equivalent to Spouse increased by 2% for 2017 to
$6,931
- Provincial Education
Amount preserved for 2017 and subsequent taxation years
2016 Budget Highlights - April 19, 2016 - on PEI website
- HST will increase from 14% to 15% effective
October 1, 2016 - see 2016 Sales
Tax Rates.
- Real Property Transfer Tax rate payable by first-time home buyers
will be eliminated (is currently 1%) effective October 1, 2016
- Non-Refundable Tax
Credit amount increases for 2016:
- Basic personal amount
increased from $7,708 to $8,000
- Spousal amount
increased from $6,546 to $6,795
- Eligible dependant
amount increased from $6,294 to $6,795 (now same as spousal amount)
- Low-Income
Tax Reduction amounts have been increased.
- Non-eligible
dividend tax credit was left at 21% of gross-up.
- Refundable
Sales Tax Credit amounts increases for the 2016/17 year:
- Base increased from
$100 to $110
- Spouse or equivalent to
spouse increased from $50 to $55
- Supplement increased
from $50 to $55
See Bill 32 An Act to Amend the Income Tax Act, on the PEI Legislative Assembly website. Bill 32 received Royal Assent on May 13, 2016.
2015 Budget Highlights - June 19, 2015 - on PEI website
- after May 4, 2015 election in which the Liberals were re-elected
- low income tax reduction threshold increased from
$15,000 to $17,000, levels of basic credits to be adjusted (no detail yet
provided)
- tax on tobacco to increase by 2.5 cents per cigarette and other tobacco
by 4.0 cents per gram
2014 Budget Address - April 8, 2014 - on PEI website(no tax changes)
2013 Budget Address - March 27, 2013 - on PEI website
Several changes are being implemented in conjunction with the implementation of the HST effective April 1, 2013:
- Small business tax rate increases to 4.5% from 1% on
April 1, 2013.
- Dividend tax credit for non-eligible dividends will
be adjusted, as per Bill 47, from 5% of gross-up to 14.5% of
gross-up.
- Provincial tax on gasoline will be reduced by 2.7
cents to 13.1 cents per litre.
- Taxes on tobacco will be adjusted
- A provincial refundable tax credit will be introduced for low and
modest-income Islanders, beginning in July 2013.
2012 Budget Address April 18, 2012 - on PEI website
- HST to be introduced effective April 1, 2013 with a total rate of 14%, compared to the current combined sales tax rate of 15.5%. The 9% provincial portion of the HST will not be applied to home eating oil, or children's clothing or footwear. An enhanced refundable tax credit will be created for Islanders with low to moderate incomes. See PEI Harmonized Sales Tax (HST) on the PE website.
- new $500 refundable income tax credit for volunteer firefighters with at least 200 hours of volunteer service per year
2011 Budget April 6, 2011 - on PEI website (no tax changes)
2010 Budget April 23, 2010 - on PEI website (no tax changes)
2009 Budget April 6, 2009 - on PEI website (no tax changes)
2008 Budget April 23, 2008
2007 Budget April 10, 2007
Revised: November 10, 2025