Atlantic Provinces -> Prince Edward Island
Tax Rates -> 2020 and 2021 Tax Rates -> Prince Edward Island
Prince Edward Island 2021 and 2020 Personal Marginal Income Tax Rates
The Prince Edward Island tax brackets and personal tax credit amounts are not increased for inflation.
The Federal tax brackets and personal tax credit amounts are increased for 2021 by an indexation factor of 1.010.
The indexation factors, tax brackets and tax rates have been confirmed to Canada Revenue Agency information.
The PEI 2020 Budget increased the basic personal amount to $10,500 for 2021, with a proportional increase to the spouse/equivalent to spouse amount. The non-eligible dividend tax credit was reduced from 2.74% to 1.96% of the taxable dividend.
If Prince Edward Island used indexing, their tax brackets and personal amounts would have been increased for 2021 by an indexation factor of 1.005.
Tax Tip: read the article Understanding the Tables of Personal Income Tax Rates, especially if you are trying to compare the rates below to the marginal tax rates in the Basic Tax Calculator.
| Prince Edward Island Personal Income Tax Brackets and Tax Rates Before Surtax | |||||||||
| 2021 Taxable Income | 2021 Tax Rates | 2020 Taxable Income | 2020 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 | |||||||||
| 2021 Taxable Income | 2021 Marginal Tax Rates | 2020 Taxable Income | 2020 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% | 15.88% | first $31,984 | 24.80% | 12.40% | -0.99% | 14.98% |
| over $31,984 up to $49,020 | 28.80% | 14.40% | 4.53% | 20.48% | over $31,984 up to $48,535 | 28.80% | 14.40% | 4.53% | 19.58% |
| over $49,020 up to $63,969 | 34.30% | 17.15% | 12.12% | 26.81% | over $48,535 up to $63,969 | 34.30% | 17.15% | 12.12% | 25.91% |
| over $63,969 up to $98,040 | 37.20% | 18.60% | 16.12% | 30.14% | over $63,969 up to $97,069 | 37.20% | 18.60% | 16.12% | 29.24% |
| over $98,040 up to $99,783 | 42.70% | 21.35% | 23.71% | 36.47% | over $97,069 up to $99,490 | 42.70% | 21.35% | 23.71% | 35.57% |
| over $99,783 up to $151,978 | 44.37% | 22.19% | 24.56% | 38.16% | over $99,490 up to $150,473 | 44.37% | 22.19% | 24.56% | 37.17% |
| over $151,978 up to $216,511(1) | 47.69% | 23.85% | 29.15% | 41.98% | over $150,473 up to $214,368(1) | 47.59% | 23.80% | 29.01% | 40.87% |
| over $216,511 | 51.37% | 25.69% | 34.22% | 46.21% | over $214,368 | 51.37% | 25.69% | 34.22% | 45.22% |
|
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 15%. For more information see Prince Edward Island dividend tax credits. |
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| Prince Edward Island Surtaxes | |||||||||
| 2021 | 2020 | ||||||||
| 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 | $99,783 | Person with only basic personal amount - surtax starts at taxable income of | $99,490 | ||||||
| The surtax is calculated based on the net tax payable after deducting personal tax credits. | |||||||||
| Prince Edward Island Basic Personal Amount | |||||||||
| 2021 Personal Amount | 2021 Tax Rate | 2020 Personal Amount | 2020 Tax Rate | ||||||
| $10,500 | 9.8% | $10,000 | 9.8% | ||||||
| Federal Basic Personal Amount | |||||||||
| 2021 Personal Amount (1) | 2021 Tax Rate | 2020 Personal Amount (1) | 2020 Tax Rate | ||||||
| $13,808 | 15% | $13,229 | 15% | ||||||
(1) See the federal tax rates page for information on the federal personal amount increase.
The marginal tax rates above have been adjusted to reflect these changes.
Copyright © 2002 Boat Harbour Investments Ltd.
Revised: October 26, 2023