Prince Edward Island is Canada’s smallest province, in both population and land size. Despite its small size, visitors flock from all over to enjoy its beautiful rolling hills, beaches, and charming island culture.
Prince Edward Island has a tax system similar to other Canadian provinces. Many of the provincial taxes and credits for residents of Prince Edward Island compliment similar credits at the federal level, but there are some unique credits for residents of Prince Edward Island.
PEI’s Progressive Tax Rate Structure
As with most provinces, Prince Edward Island uses a progressive tax structure with only three tax brackets. The brackets may increase each year, based on inflation. Visit the CRA’s Prince Edward Island page for this year’s tax bracket rates.
Prince Edward Island’s Income Tax Rates for Tax Year 2020
Taxable Annual Income
|9.8%||on the first $31,984||$31,984|
|13.8%||on the next $31,985||over $31,984 up to $63,969|
|16.7%||on the portion over $63,969||over $63,969|
Prince Edward Island Provincial Tax Credits
- A complete list of Non-Refundable Tax Credits and other credits or deductions for Prince Edward Island residents can be found in this CRA link: Prince Edward Island Tax and Credits.
- PEI Volunteer Firefighter Tax Credit: Residents of Prince Edward Island can claim a $500 refundable credit for volunteering as a firefighter. Learn more on how to claim this credit on your taxes in this CRA link.
There is an allowable amount of income that you can earn before you must start paying taxes. That is called the “basic personal” or “personal amount.” For the 2020 tax year, the Federal Basic Personal Amount (BPA) is $13,229, while the Prince Edward Island amount is $10,000.
This TurboTax article provides more information on the federal tax rates, as well as links to other provinces and tax calculators: An Overview of Canada’s Tax Brackets.
Affordable, Professional Tax Help
TurboTax is the software of choice for personal taxes, small businesses, and entrepreneurs. It’s the fast, easy, affordable, accurate way to do your taxes. Answer a few simple questions on our product recommender and we can help guide you to the right edition that will reflect your individual circumstances.
You can always start your return in TurboTax Free, and if you feel the need for additional assistance, you can upgrade to any of our paid editions or get Live help from an expert with our Assist & Review or Full Service*. But don’t worry, while using the online version of the software when you choose to upgrade, your information is instantly carried over so you can pick up right where you left off.
*TurboTax Live™ Full Service is not available in Quebec.