Prince Edward Island Income Tax Calculator 2026

Prince Edward Island Income Tax: 2026 Overview

Prince Edward Island restructured its provincial income-tax system over 2024–2026, expanding from three brackets to six with rates of 9.5%, 13.47%, 16.6%, 17.62%, 19% and 20%. The reform increased the basic personal amount, adjusted bracket thresholds and replaced the former provincial surtax with a higher top bracket to make the system more progressive across income levels. Residents of Charlottetown, Summerside and across Canada's smallest province now face an income-tax burden below Nova Scotia's but above New Brunswick's and, from about $35,000 of income, Newfoundland and Labrador's; PEI's 9.5% entry rate is also slightly above New Brunswick's 9.4%.

As part of the reform, PEI eliminated its former 10% provincial surtax and replaced it with a 20% top bracket on taxable income above $200,000. Combined with the federal top rate of 33% — which itself starts at $258,482 — the effective top combined marginal rate in PEI is approximately 53%. The basic personal amount (BPA) for 2026 is $15,000, providing modest baseline relief for low-income residents.

Prince Edward Island 2026 Tax Brackets

Prince Edward Island eliminated its former 10% provincial surtax during the 2024–2026 reform, folding the burden into a new 20% top bracket above $200,000. The province does not levy a health-care premium or employer payroll tax. The basic personal amount of $15,000 in 2026 is mid-range among provinces. Key non-refundable credits mirror federal categories, with notable additions including the PEI Equity Tax Credit for investments in eligible small businesses, the Volunteer Firefighter Tax Credit, and the Children's Wellness Tax Credit. Refundable credits include the PEI Sales Tax Credit and the PEI Low-Income Refundable Tax Credit, helping offset HST burdens for lower-income households.