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Prince Edward Island Personal Tax Rates

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Atlantic Provinces   ->   Prince Edward Island
Tax Rates   ->   Current Marginal Tax Rates -> Prince Edward Island

Prince Edward Island 2019 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 2019 by an indexation factor of 1.022.  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 to $9,160.  The amount shown below reflects the increases, from $8,160 in 2017 to $9,160 in 2018 and 2019.  The change in the basic personal amount also changes the level at which the surtax starts.

The 2019 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 2019, as announced in the October 24, 2017 Fall Economic Statement.  The PEI 2018 Budget announced a reduction in the small business tax rate from 4.5% to 4% in 2018, and indicated that there would be a corresponding adjustment to the non-eligible dividend tax credit rate.  The Department of Finance subsequently indicated that the rate would not change, other than the automatic change due to the reduction in the gross-up rate.

Please read the article Understanding the Tables of Personal Income Tax Rates.

Prince Edward Island Personal Income Tax Brackets and Tax Rates Before Surtax

2019 Taxable Income 2019 Tax Rates 2018 Taxable Income 2018 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

2019 Taxable Income 2019 Marginal Tax Rates 2018 Taxable Income 2018 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% 14.98% first $31,984 24.80% 12.40% -0.99% 13.77%
over $31,984 up to $47,630 28.80% 14.40% 4.53% 19.58% over $31,984 up to $46,605 28.80% 14.40% 4.53% 18.41%
over $47,630 up to $63,969 34.30% 17.15% 12.12% 25.91% over $46,605 up to $63,969 34.30% 17.15% 12.12% 24.79%
over $63,969 up to $95,259 37.20% 18.60% 16.12% 29.24% over $63,969 up to $93,208 37.20% 18.60% 16.12% 28.15%
over $95,259 up to $98,997 42.70% 21.35% 23.71% 35.57% over $93,208 up to $98,997 42.70% 21.35% 23.71% 34.53%
over $98,997 up to $147,667 44.37% 22.19% 24.56% 37.17% over $98,997 up to $144,489 44.37% 22.19% 24.56% 36.13%
over $147,667 up to $210,371 47.37% 23.69% 28.70% 40.62% over $144,489 up to $205,842 47.37% 23.69% 28.70% 39.61%
over $210,371 51.37% 25.69% 34.22% 45.22% over $205,842 51.37% 25.69% 34.22% 44.25%

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% in 2019, and 16% in 2018.
For more information see Prince Edward Island dividend tax credits.

Prince Edward Island Surtaxes

2019 2018
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 $98,997

The surtax is calculated based on the net tax payable after deducting personal tax credits.

Prince Edward Island Basic Personal Amount

2019 Personal Amount 2019 Tax Rate 2018 Personal Amount 2018 Tax Rate
$9,160 9.8% $9,160 9.8%

Federal Basic Personal Amount

2019 Personal Amount 2019 Tax Rate 2018 Personal Amount 2018 Tax Rate
$12,069 15% $11,809 15%
 

Copyright © 2002 Boat Harbour Investments Ltd.

Revised: December 06, 2018

Copyright © 2002 Boat Harbour Investments Ltd. All Rights Reserved.  See Reproduction of information from TaxTips.ca

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