Prince Edward Island 2022 and 2021 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 2022 by an indexation factor of 1.024 (a 2.4% increase).

The indexation factors, tax brackets and tax rates have been confirmed to Canada Revenue Agency information.

The PEI 2021 Budget increased the basic personal amount to $11,250 for 2022, and Bill 37 legislated an increase to the spouse/equivalent to spouse amount. Bill 37 also reduced the non-eligible dividend tax credit rate.

If Prince Edward Island used indexing, their tax brackets and personal amounts would have been increased for 2022 by an indexation factor of 1.033 (a 3.3% increase).

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.

TaxTips.ca - Prince Edward Island Personal Income Tax Brackets and Tax Rates Before Surtax
2022 Taxable Income	2022 Tax Rates	2021 Taxable Income	2021 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%

TaxTips.ca - Combined Federal & Prince Edward Island Tax Brackets and Tax Rates Including Surtax
2022 Taxable Income	PE 2022 Marginal Tax Rates				2021 Taxable Income	PE 2021 Marginal Tax Rates
	Other Income	Capital Gains	Canadian Dividends			Other Income	Capital Gains	Canadian Dividends
	Other Income	Capital Gains	Eligible	Non-Eligible		Other Income	Capital Gains	Eligible	Non-Eligible
first $31,984	24.80%	12.40%	-0.99%	16.64%	first $31,984	24.80%	12.40%	-0.99%	15.88%
over $31,984 up to $50,197	28.80%	14.40%	4.53%	21.24%	over $31,984 up to $49,020	28.80%	14.40%	4.53%	20.48%
over $50,197 up to $63,969	34.30%	17.15%	12.12%	27.57%	over $49,020 up to $63,969	34.30%	17.15%	12.12%	26.81%
over $63,969 up to $100,223	37.20%	18.60%	16.12%	30.90%	over $63,969 up to $98,040	37.20%	18.60%	16.12%	30.14%
over $100,223 up to $100,392	38.87%	19.44%	16.97%	32.67%	over $98,040 up to $99,783	42.70%	21.35%	23.71%	36.47%
over $100,392 up to $155,625	44.37%	22.19%	24.56%	39.00%	over $99,783 up to $151,978	44.37%	22.19%	24.56%	38.16%
over $155,625 up to $221,708	47.75%	23.88%	29.23%	42.89%	over $151,978 up to $216,511	47.69%	23.85%	29.15%	41.98%
over $221,708	51.37%	25.69%	34.22%	47.05%	over $216,511	51.37%	25.69%	34.22%	46.21%
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.
Prince Edward Island Surtaxes
2022					2021
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				$100,223	Person with only basic personal amount - surtax starts at taxable income of				$99,783
The surtax is calculated based on the net tax payable after deducting personal tax credits.
Prince Edward Island Basic Personal Amount
2022 Personal Amount	2022 Tax Rate				2021 Personal Amount	2021 Tax Rate
$11,250	9.8%				$10,500	9.8%
Federal Basic Personal Amount
2022 Personal Amount (1)	2022 Tax Rate				2021 Personal Amount (1)	2021 Tax Rate
$14,398	15%				$13,808	15%

(1) See the federal tax rates page for information on the enhanced federal personal amount, which increases the marginal tax rates for taxable incomes in the second highest federal tax bracket. The marginal tax rates in blue above have been adjusted to reflect these changes.

Revised: October 26, 2023