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Prince Edward Island 2017 and 2018 Personal Marginal
Income Tax Rates
The Prince Edward Island tax brackets and personal tax credits are
not increased for inflation. The Federal tax brackets
and personal amount are increased for 2018 by an indexation factor of
1.015. The indexation
factors, tax brackets and tax rates have been
confirmed to Canada Revenue Agency
information.
The PEI 2018
Budget announced that the basic personal amount would increase by $500 for
2018 and a further $500 for 2019. The PEI government announced
on November 6, 2018 that the 2018 basic personal amount is increased
retroactively to $9,160. The amount shown below reflects the increase, from $8,160 in 2017 to
$9,160 in 2018. The change in the basic personal amount also changes the
level at which the surtax starts.
The 2018 marginal tax rates for non-eligible dividends reflect the rates that
are
in effect automatically due to the change in the gross-up rate for 2018, as
announced in the October
24, 2017 Fall Economic Statement. However, due to the reduction in the
small business corporate income tax rate announced in the PEI 2018 Budget, there
will be a further change to the non-eligible dividend tax credit rate, which is
not yet reflected in the tax rates below.
Prince Edward Island
Personal Income Tax Brackets and Tax Rates Before Surtax
2018
Taxable Income
2018
Tax Rates
2017
Taxable Income
2017
Tax Rates
first $31,984
9.8%
first $31,984
9.8%
over $31,984 up to
$63,969
13.8%
over $31,984 up to
$63,969
13.8%
over $63,969
16.7%
over $63,969
16.7%
Combined Federal
& Prince Edward Island Tax Brackets and Tax Rates Including
Surtax
2018
Taxable Income
2018
Marginal Tax Rates
2017
Taxable Income
2017
Marginal Tax Rates
Other
Income
Capital
Gains
Canadian
Dividends
Other
Income
Capital
Gains
Canadian
Dividends
Eligible
Non-Eligible
Eligible
Non-Eligible
first $31,984
24.80%
12.40%
-0.99%
13.77%
first $31,984
24.80%
12.40%
-0.99%
13.14%
over $31,984 up to
$46,605
28.80%
14.40%
4.53%
18.41%
over $31,984 up to
$45,916
28.80%
14.40%
4.53%
17.82%
over $46,605 up to $63,969
34.30%
17.15%
12.12%
24.79%
over $45,916 up to $63,969
34.30%
17.15%
12.12%
24.25%
over $63,969 up to
$93,208
37.20%
18.60%
16.12%
28.15%
over $63,969 up to
$91,831
37.20%
18.60%
16.12%
27.64%
over $93,208 up to $98,997
42.70%
21.35%
23.71%
34.53%
over $91,831 up to $98,410
42.70%
21.35%
23.71%
34.08%
over $98,997 up to
$144,489
44.37%
22.19%
24.56%
36.13%
over $98,410 up to
$142,353
44.37%
22.19%
24.56%
35.68%
over $144,489 up to $205,842
47.37%
23.69%
28.70%
39.61%
over $142,353 up to $202,800
47.37%
23.69%
28.70%
39.19%
over $205,842
51.37%
25.69%
34.22%
44.25%
over $202,800
51.37%
25.69%
34.22%
43.87%
Marginal tax rate for dividends is a % of actual
dividends received (not grossed-up taxable amount).
Marginal tax rate for capital gains is a % of total capital gains
(not taxable capital gains).
Gross-up rate for eligible dividends is 38%, and for non-eligible dividends is
17% in 2017, and 16% in 2018.
For more information see Prince Edward Island dividend tax
credits.
Prince Edward Island Surtaxes
2018
2017
Surtax rate (included in
above rates)
10%
Surtax rate (included in
above rates)
10%
Surtax is on PE tax
greater than
$12,500
Surtax is on PE tax
greater than
$12,500
Person with only basic
personal amount - surtax starts at taxable income of
$98,997
Person with only basic
personal amount - surtax starts at taxable income of
$98,410
The surtax is
calculated based on the net tax payable after deducting personal tax
credits.
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