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

Prince Edward Island 2023 and 2022 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 2023 by an indexation factor of 1.084 (8.4% increase).

The Federal tax brackets and personal tax credit amounts are increased for 2023 by an indexation factor of 1.063 (6.3% 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 2023 have been confirmed to Canada Revenue Agency information.

The PEI 2022 Budget increased the 2023 basic personal amount to $12,000.

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.

TaxTips.ca - Prince Edward Island Tax Rates Before Surtax
2023 Taxable Income 2023 Tax Rates 2022 Taxable Income 2022 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%

 

TaxTips.ca - Combined Federal & Prince Edward Island Tax Brackets and Tax Rates Including Surtax
2023 Taxable Income (1) PE 2023 Marginal Tax Rates 2022 Taxable Income (1) PE 2022 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% 16.64% first $31,984 24.80% 12.40% -0.99% 16.64%
over $31,984 up to $53,359 28.80% 14.40% 4.53% 21.24% over $31,984 up to $50,197 28.80% 14.40% 4.53% 21.24%
over $53,359 up to $63,969 34.30% 17.15% 12.12% 27.57% over $50,197 up to $63,969 34.30% 17.15% 12.12% 27.57%
over $63,969 up to $100,664 37.20% 18.60% 16.12% 30.90% over $63,969 up to $100,223 37.20% 18.60% 16.12% 30.90%
over $100,664 up to $106,717 38.87% 19.44% 16.97% 32.67% over $100,223 up to $100,392 38.87% 19.44% 16.97% 32.67%
over $106,717 up to $165,430 44.37% 22.19% 24.56% 39.00% over $100,392 up to $155,625 44.37% 22.19% 24.56% 39.00%
over $165,430 up to $235,675 47.69% 23.85% 29.15% 42.82% over $155,625 up to $221,708 47.75% 23.88% 29.23% 42.89%
over $235,675 51.37% 25.69% 34.22% 47.05% over $221,708 51.37% 25.69% 34.22% 47.05%
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
2023 2022
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 $100,664 Person with only basic personal amount - surtax starts at taxable income of $100,223
The surtax is calculated based on the net tax payable after deducting personal tax credits.
Prince Edward Island Basic Personal Amount
2023 Personal Amount 2023 Tax Rate 2022 Personal Amount 2022 Tax Rate
$12,000 9.8% $11,250 9.8%
Federal Basic Personal Amount
2023 Personal Amount (1) 2023 Tax Rate 2022 Personal Amount (1) 2022 Tax Rate
$15,000 15% $14,398 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: November 30, 2022

 

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

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