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

Prince Edward Island 2022 and 2021 Personal Marginal 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 2022 by an indexation factor of 1.024 (a 2.4% increase).

The indexation factors, tax brackets and tax rates have not yet been confirmed to Canada Revenue Agency information.

The PEI 2021 Budget increased the basic personal amount to $11,250 for 2022, but there was no mention of 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 2022 by an indexation factor of 1.033 (a 3.3% increase).

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.

Prince Edward Island Personal Income Tax Brackets and Tax Rates Before Surtax
2022 Taxable Income 2022 Tax Rates 2021 Taxable Income 2021 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
2022 Taxable Income PE 2022 Marginal Tax Rates 2021 Taxable Income PE 2021 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% 15.88% first $31,984 24.80% 12.40% -0.99% 15.88%
over $31,984 up to $50,197 28.80% 14.40% 4.53% 20.48% over $31,984 up to $49,020 28.80% 14.40% 4.53% 20.48%
over $50,197 up to $63,969 34.30% 17.15% 12.12% 26.81% over $49,020 up to $63,969 34.30% 17.15% 12.12% 26.81%
over $63,969 up to $100,223 37.20% 18.60% 16.12% 30.14% over $63,969 up to $98,040 37.20% 18.60% 16.12% 30.14%
over $100,223 up to $100,392 38.87% 19.44% 16.97% 31.84% over $98,040 up to $99,783 42.70% 21.35% 23.71% 36.47%
over $100,392 up to $155,625 44.37% 22.19% 24.56% 38.16% over $99,783 up to $151,978 44.37% 22.19% 24.56% 38.16%
over $155,625 up to $221,708 47.75% 23.88% 29.23% 42.05% over $151,978 up to $216,511 47.69% 23.85% 29.15% 41.98%
over $221,708 51.37% 25.69% 34.22% 46.21% over $216,511 51.37% 25.69% 34.22% 46.21%
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
2022 2021
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 $100,223 Person with only basic personal amount - surtax starts at taxable income of $99,783
The surtax is calculated based on the net tax payable after deducting personal tax credits.
Prince Edward Island Basic Personal Amount
2022 Personal Amount 2022 Tax Rate 2021 Personal Amount 2021 Tax Rate
$11,250 9.8% $10,500 9.8%
Federal Basic Personal Amount
2022 Personal Amount (1) 2022 Tax Rate 2021 Personal Amount (1) 2021 Tax Rate
$14,398 15% $13,808 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: October 24, 2021

 

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