Prince Edward Island 2024 and 2023 Tax Rates & Tax Brackets

The Prince Edward Island tax brackets and personal tax credit amounts are not increased for inflation.

If Prince Edward Island used indexing, their tax brackets and personal amounts would have been increased for 2024 by an indexation factor of 1.046 (4.6% increase).

The PEI 2023 Budget increased the 2024 basic personal amount to $13,500, introduced additional tax brackets and revised tax rates for 2024, and eliminated the 10% surtax for 2024 and later years.

The 2024 Federal Budget proposed an increase in the capital gains inclusion rate to 66 2/3% for the portion of gains realized after June 24, 2024 in excess of $250,000, for an individual. We've added an extra column below, to show the marginal tax rate for those gains. The inclusion rate is still 50% for the portion of gains up to $250,000 after June 24, 2024.

The Federal tax brackets and personal tax credit amounts are increased for 2024 by an indexation factor of 1.047 (4.7% increase).

See Indexation of the Personal Income Tax System for how the indexation factors are calculated.

The indexation factors, tax brackets and tax rates for 2024 have been confirmed to Canada Revenue Agency information.

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 or the Detailed Tax Calculators.

TaxTips.ca - Prince Edward Island Tax Rates Before Surtax Surtax Eliminated for 2024 and Later Years
2024 Taxable Income	2024 Tax Rates	2023 Taxable Income	2023 Tax Rates
first $32,656	9.65%	first $31,984	9.8%
over $32,656 up to $64,313	13.63%	over $31,984 up to $63,969	13.8%
over $64,313 up to $105,000	16.65%	over $63,969	16.7%
over $105,000 up to $140,000	18.00%
over $140,000	18.75%

TaxTips.ca - Combined Federal & Prince Edward Island Tax Brackets and Tax Rates Including Surtax in 2023 Only
2024 Taxable Income (1)	PE 2024 Marginal Tax Rates					2023 Taxable Income (1)	PE 2023 Marginal Tax Rates
	Other Income	Capital Gains		Canadian Dividends			Other Income	Capital Gains	Canadian Dividends
	Other Income	All Pre- Jun 25	>$250K Post- Jun 24	Eligible	Non-Eligible		Other Income	Capital Gains	Eligible	Non-Eligible
first $32,656	24.65%	12.33%	16.43%	-1.20%	16.47%	first $31,984	24.80%	12.40%	-0.99%	16.64%
over $32,656 up to $55,867	28.63%	14.32%	19.09%	4.29%	21.04%	over $31,984 up to $53,359	28.80%	14.40%	4.53%	21.24%
over $55,867 up to $64,313	34.13%	17.07%	22.75%	11.88%	27.37%	over $53,359 up to $63,969	34.30%	17.15%	12.12%	27.57%
over $64,313 up to $105,000	37.15%	18.58%	24.77%	16.05%	30.84%	over $63,969 up to $101,104	37.20%	18.60%	16.12%	30.90%
over $105,000 up to $111,733	38.50%	19.25%	25.67%	17.91%	32.40%	over $101,104 up to $106,717	38.87%	19.44%	16.97%	32.67%
over $111,733 up to $140,000	44.00%	22.00%	29.33%	25.50%	38.72%	over $106,717 up to $165,430	44.37%	22.19%	24.56%	39.00%
over $140,000 up to $173,205	44.75%	22.38%	29.83%	26.54%	39.58%	over $165,430 up to $235,675	47.69%	23.85%	29.15%	42.82%
over $173,205 up to $246,752	48.07%	24.04%	32.05%	31.12%	43.40%	over $235,675	51.37%	25.69%	34.22%	47.05%
over $246,752	51.75%	25.88%	34.50%	36.20%	47.63%
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. Copyright © 2002 Boat Harbour Investments Ltd.

TaxTips.ca Prince Edward Island Surtaxes
2024		2023
Surtax rate (included in above rates)	0%	Surtax rate (included in above rates)	10%
Surtax is on PE tax greater than	n/a	Surtax is on PE tax greater than	$12,500
Person with only basic personal amount - surtax starts at taxable income of	n/a	Person with only basic personal amount - surtax starts at taxable income of	$101,104
The surtax is calculated based on the net tax payable after deducting personal tax credits.

TaxTips.ca Prince Edward Island Basic Personal Amount
2024 Personal Amount	2024 Tax Rate	2023 Personal Amount	2023 Tax Rate
$13,500	9.65%	$12,750	9.8%

Federal Basic Personal Amount
2024 Personal Amount (1) Minimum / Maximum		2024 Tax Rate	2023 Personal Amount (1) Minimum / Maximum		2023 Tax Rate
$14,156	$15,705	15%	$13,520	$15,000	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 15, 2024