See the Canada Federal Personal Tax Rates page for information on the Capital Gains Inclusion Rate Change, the increase to which will likely not be reintroduced.
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 2025 by an indexation factor of 1.02 (2.0% increase). The actual % increases, according to the amounts in the 2024 Budget, are:
The PEI 2024 Budget increases the 2025 basic personal amount to $14,250, raises two tax bracket thresholds, lowers the tax rates for the first 4 tax brackets, and raises the tax rate for the top tax bracket. The tax brackets shown in the table below are the proposed tax brackets as per the 2024 Budget. Bill 66, An Act to Amend the Income Tax Act (No. 2) was tabled on November 8, 2024.
The Federal tax brackets and personal tax credit amounts are increased for 2025 by an indexation factor of 1.027 (2.7% increase).
See Indexation of the Personal Income Tax System for how the indexation factors are calculated.
The Federal and PEI indexation factors, tax brackets and tax rates for 2025 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 | |||||||||||
| 2025 Taxable Income | 2025 Tax Rates | 2024 Taxable Income | 2024 Tax Rates | ||||||||
| first $33,328 | 9.50% | first $32,656 | 9.65% | ||||||||
| over $33,328 up to $64,656 | 13.47% | over $32,656 up to $64,313 | 13.63% | ||||||||
| over $64,656 up to $105,000 | 16.60% | over $64,313 up to $105,000 | 16.65% | ||||||||
| over $105,000 up to $140,000 | 17.62% | over $105,000 up to $140,000 | 18.00% | ||||||||
| over $140,000 | 19.00% | over $140,000 | 18.75% | ||||||||
| TaxTips.ca - Combined Federal & Prince Edward Island Tax Brackets and Tax Rates | |||||||||
| 2025 Taxable Income (1) | PE 2025 Marginal Tax Rates | 2024 Taxable Income (1) | PE 2024 Marginal Tax Rates | ||||||
| Other Income |
Capital Gains | Canadian Dividends | Other Income |
Capital Gains |
Canadian Dividends | ||||
| Eligible | Non-Eligible | Eligible | Non-Eligible | ||||||
| first $33,328 | 24.00% | 12.00% | -2.10% | 15.72% | first $32,656 | 24.65% | 12.33% | -1.20% | 16.47% |
| over $33,328 up to $57,375 | 27.97% | 13.99% | 3.38% | 20.29% | over $32,656 up to $55,867 | 28.63% | 14.32% | 4.29% | 21.04% |
| over $57,375 up to $64,656 | 33.97% | 16.99% | 11.66% | 27.19% | over $55,867 up to $64,313 | 34.13% | 17.07% | 11.88% | 27.37% |
| over $64,656 up to $105,000 | 37.10% | 18.55% | 15.98% | 30.79% | over $64,313 up to $105,000 | 37.15% | 18.58% | 16.05% | 30.84% |
| over $105,000 up to $114,750 | 38.12% | 19.06% | 17.39% | 31.96% | over $105,000 up to $111,733 | 38.50% | 19.25% | 17.91% | 32.40% |
| over $114,750 up to $140,000 | 43.62% | 21.81% | 24.98% | 38.28% | over $111,733 up to $140,000 | 44.00% | 22.00% | 25.50% | 38.72% |
| over $140,000 up to $177,882 | 45.00% | 22.50% | 26.88% | 39.87% | over $140,000 up to $173,205 | 44.75% | 22.38% | 26.54% | 39.58% |
| over $177,882 up to $253,414 | 48.31% | 24.16% | 31.45% | 43.68% | over $173,205 up to $246,752 | 48.07% | 24.04% | 31.12% | 43.40% |
| over $253,414 | 52.00% | 26.00% | 36.54% | 47.92% | over $246,752 | 51.75% | 25.88% | 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. |
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|
TaxTips.ca Prince Edward Island Basic Personal Amount |
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| 2025 Personal Amount | 2025 Tax Rate | 2024 Personal Amount | 2024 Tax Rate | ||||||||
| $14,250 | 9.50% | $13,500 | 9.65% | ||||||||
| Federal Basic Personal Amount | |||||||||||
| 2025
Personal Amount (1) Minimum / Maximum |
2025 Tax Rate | 2024
Personal Amount (1) Minimum / Maximum |
2024 Tax Rate | ||||||||
| $14,538 | $16,129 | 14.5% | $14,156 | $15,705 | 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.
Copyright © 2002 Boat Harbour Investments Ltd.
Revised: September 28, 2025