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Atlantic Provinces   ->   Prince Edward Island  -> Budgets

Prince Edward Island Budgets

All proposed tax measures are subject to legislative approval.

2022 PEI Budget - February 24, 2022

 - on PEI website

Bill 63, An Act to Amend the Income Tax Act (No.2) tabled/passed 1st reading March 24, 2022

Bill 64, An Act to Amend the Income Tax Act (No.3) tabled/passed 1st reading March 24, 2022

Tax Measures:

bulletBasic Personal Amount (BPA) increases by $750 to $12,000 for 2023
bulletSpouse/eligible dependant amount increases to $10,192 from $9,555 for 2023
bulletnew tax on vaping products
bulletincreased tobacco taxes
bulletcarbon tax increase (as per plan) April 1, 2022
bulletBill 64 increases the refundable sales tax credit for an individual from $110 to $670 as a rebate of carbon tax, effective July 2022.
bulletBill 63 expands the volunteer firefighter tax credit to include volunteer search and rescue personnel, and increases the amount to $1,000 from $500, for 2022 and later years

There are other non-tax measures.

2021 Fall Fiscal and Economic Update - November 5, 2021

 - on PEI website, no tax changes

2021 PEI Budget - March 12, 2021

 - on PEI website

Bill 37, An Act to Amend the Income Tax Act Royal Assent November 17, 2021

Tax Measures effective Jan 1, 2022:

bulletincrease in Basic Personal Amount to $11,250 from $10,500
bulletincrease in Low-Income Tax Reduction Threshold to $20,000 from $19,000
bulletSmall Business Tax rate reduced to 1% - see resulting reduction of the non-eligible dividend tax credit below.
bulletNot announced in the budget, but included in Bill 37:
bulletSpouse/equivalent to spouse (eligible dependant) amount increased to $9,555, reduced by spousal income in excess of $955.
bulletNon-eligible dividend tax credit reduced from 15% of the gross-up to 10%, resulting in a tax credit of 1.3% of the taxable dividend, decreased from 1.96%.

There are many other non-tax measures.

2020 PEI Budget - June 17, 2020

 - 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.

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

2018 Budget Highlights

See Bill No. 33, An Act to Amend the Income Tax Act and 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

  - 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

2007 Budget

Revised: May 07, 2022



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