Atlantic Provinces -> Prince Edward Island -> Budgets
Prince Edward Island Budgets
All proposed tax measures are subject to legislative approval.
- on PEI website
Tax Measures effective Jan 1, 2022:
There are many other non-tax measures.
- on PEI website
- 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
Bill 12, An Act to Amend the Income Tax Act received Royal Assent (became law) July 12, 2019.
- 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
business tax cut: Rate will decrease by 0.5% effective January 1, 2018
(as per Bill 33)
- Basic Personal Amount increased by 2% for
2017 to $8,160
2016 Budget Highlights - April 19, 2016 - on PEI website
- HST will increase from 14% to 15% effective
October 1, 2016 - see 2016 Sales
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
- low income tax reduction threshold increased from
$15,000 to $17,000, levels of basic credits to be adjusted (no detail yet
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.
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)
Revised: May 17, 2021
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