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

Prince Edward Island 2020 and 2019 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 credits are not increased for inflation.  The Federal tax brackets and personal amount are increased for 2020 by an indexation factor of 1.019.  The indexation factors, tax brackets and tax rates have been confirmed to Canada Revenue Agency information.

The PEI 2019 Budget increased the basic personal amount to $10,000 for 2020, with a proportional increase to the spouse/equivalent to spouse amount.

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

2020 Taxable Income 2020 Tax Rates 2019 Taxable Income 2019 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

2020 Taxable Income 2020 Marginal Tax Rates 2019 Taxable Income 2019 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 $48,535 28.80% 14.40% 4.53% 19.58% over $31,984 up to $47,630 28.80% 14.40% 4.53% 19.58%
over $48,535 up to $63,969 34.30% 17.15% 12.12% 25.91% over $47,630 up to $63,969 34.30% 17.15% 12.12% 25.91%
over $63,969 up to $97,069 37.20% 18.60% 16.12% 29.24% over $63,969 up to $95,259 37.20% 18.60% 16.12% 29.24%
over $97,069 up to $99,490 42.70% 21.35% 23.71% 35.57% over $95,259 up to $98,997 42.70% 21.35% 23.71% 35.57%
over $99,490 up to $150,473 44.37% 22.19% 24.56% 37.17% over $98,997 up to $147,667 44.37% 22.19% 24.56% 37.17%
over $150,473 up to $214,368 47.59% 23.80% 29.00% 40.87% over $147,667 up to $210,371 47.37% 23.69% 28.70% 40.62%
over $214,368 51.37% 25.69% 34.22% 45.22% over $210,371 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

2020 2019
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 $98,997

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

Prince Edward Island Basic Personal Amount

2020 Personal Amount 2020 Tax Rate 2019 Personal Amount 2019 Tax Rate
$10,000 9.8% $9,160 9.8%

Federal Basic Personal Amount

2020 Personal Amount (1) 2020 Tax Rate 2019 Personal Amount 2019 Tax Rate
$13,229 15% $12,069 15%

(1) The 2020 federal personal amount is increased from $12,298 to $13,229 for taxpayers with net income of $150,473 or less.  For incomes above this threshold, the additional amount of $931 is reduced until it becomes zero at net income of $214,368.  The marginal tax rates above have been adjusted to reflect this change.

Copyright © 2002 Boat Harbour Investments Ltd.

Revised: February 09, 2020

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

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