Prince Edward Island Sales Tax Rate
Complete guide to sales tax in Prince Edward Island (PE) for 2026. Combined rate: 15%.
Combined Rate
15%
Harmonized Sales Tax (HST)
Federal (GST)
5%
Provincial (HST portion)
10%
Tax on $100
$15.00
Tax Rate Breakdown
Before and After Tax in Prince Edward Island
Quick reference for common purchase amounts at 15% combined rate
| Before Tax | GST (5%) | HST Prov. (10%) | Total Tax | After Tax |
|---|---|---|---|---|
| $100.00 | $5.00 | $10.00 | $15.00 | $115.00 |
| $500.00 | $25.00 | $50.00 | $75.00 | $575.00 |
| $1,000.00 | $50.00 | $100.00 | $150.00 | $1,150.00 |
| $5,000.00 | $250.00 | $500.00 | $750.00 | $5,750.00 |
Tax-Inclusive Price Breakdown
If the total price already includes tax, here is how it breaks down
| Total (incl. tax) | Tax Included | Price Before Tax |
|---|---|---|
| $100.00 | $13.04 | $86.96 |
| $500.00 | $65.22 | $434.78 |
| $1,000.00 | $130.43 | $869.57 |
| $5,000.00 | $652.17 | $4,347.83 |
Sales Tax Comparison Across Canada
How Prince Edward Island's 15% rate compares to other provinces
| Province | Tax Type | Rate | Tax on $1,000 | vs. PE |
|---|---|---|---|---|
| Alberta (AB) | GST | 5% | $50.00 | -10% |
| Northwest Territories (NT) | GST | 5% | $50.00 | -10% |
| Nunavut (NU) | GST | 5% | $50.00 | -10% |
| Yukon (YT) | GST | 5% | $50.00 | -10% |
| Saskatchewan (SK) | GST+PST | 11% | $110.00 | -4% |
| British Columbia (BC) | GST+PST | 12% | $120.00 | -3% |
| Manitoba (MB) | GST+PST | 12% | $120.00 | -3% |
| Ontario (ON) | HST | 13% | $130.00 | -2% |
| Nova Scotia (NS) | HST | 14% | $140.00 | -1% |
| Quebec (QC) | GST+QST | 14.975% | $149.75 | -0.025% |
| New Brunswick (NB) | HST | 15% | $150.00 | -- |
| Newfoundland and Labrador (NL) | HST | 15% | $150.00 | -- |
| Prince Edward Island (PE) | HST | 15% | $150.00 | -- |
Sales Tax in Prince Edward Island: A Complete Guide
Prince Edward Island charges a Harmonized Sales Tax (HST) of 15%, which includes the 5% federal portion and a 10% provincial portion. PEI's rate matches those of New Brunswick and Newfoundland and Labrador as the highest combined sales tax in Canada.
The HST in Prince Edward Island applies to most goods and services with standard exemptions. Basic groceries, prescription drugs, and medical devices are exempt from tax. Point-of-sale rebates are available on children's clothing, printed books, and feminine hygiene products, effectively removing the provincial component on these items. Businesses on PEI benefit from the single-return HST system administered by the CRA.
Prince Edward Island adopted the HST on April 1, 2013, replacing its previous 10% Provincial Sales Tax (PST). PEI was the last province to harmonize, doing so after observing the experiences of other provinces. The transition to HST at 14% was followed by an increase to 15% on October 1, 2016. The harmonization eliminated the cascading tax effect on business inputs and simplified compliance, although the high combined rate remains a concern for consumer affordability on the island.