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

Prince Edward Island 2021 and 2020 Personal Marginal Income Tax Rates

Please read the article Understanding the Tables of Personal 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.

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.

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% 14.98% first $31,984 24.80% 12.40% -0.99% 14.98%
over $31,984 up to $49,020 28.80% 14.40% 4.53% 19.58% 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% 25.91% 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% 29.24% over $63,969 up to $97,069 37.20% 18.60% 16.12% 29.24%
over $98,040 up to $99,490 42.70% 21.35% 23.71% 35.57% over $97,069 up to $99,490 42.70% 21.35% 23.71% 35.57%
over $99,490 up to $151,978 44.37% 22.19% 24.56% 37.17% over $99,490 up to $150,473 44.37% 22.19% 24.56% 37.17%
over $151,978 up to $216,511 47.69% 23.85% 29.15% 40.99% over $150,473 up to $214,368 47.59% 23.80% 29.01% 40.87%
over $216,511 51.37% 25.69% 34.22% 45.22% 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.
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 $99,490 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: November 17, 2020

 

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

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