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PEI Personal Tax Credits

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Atlantic Provinces   ->    Prince Edward Island

PEI Non-Refundable Personal Tax Credits

For information on the amounts of most non- refundable tax credits available to Prince Edward Island residents, see the non-refundable personal tax credits tables.

PEI Young Child Tax Credit

PE has a tax credit for taxpayers having eligible children under the age of 6.  The tax credit is based on $100 per month starting July 1, 2006.  The lowest rate of tax is used to calculate the credit, which is claimed by the spouse with the lower taxable income.

PEI Low Income Tax Reduction (LITR)

Income Tax Act s. 32

    - available to low income individuals and families
    - amount received depends on family net income
    - cannot exceed PE tax payable (not refundable)

The 2016 and later amounts are as per the PE 2016 Budget.

 

Low Income Tax Reduction 2016 &
later
2015 2014 &
earlier
Self 350 300 250
Spouse or equivalent 350 300 250
Child age 18 or less 300 250 200
Each spouse age 65+   250 250 0
Income threshold 17,000 17,000 15,000

The amount for each child age 18 or less is reduced by 1 child if equivalent to spouse is claimed.

The credit is reduced by 5% of family adjusted net income in excess of the income threshold. Adjusted net income is income from line 236 of the tax return, less Universal Child Care Benefits (UCCB).

See Canada Revenue Agency ( CRA) form PE428 from the Prince Edward Island General Income Tax and Benefit Package for detailed calculation.

PEI Refundable Sales Tax Credit

The PE non-taxable refundable sales tax credit is paid in conjunction with the federal GST/HST credit.  Quarterly payments are made from July 2016 to June 2017 based on the 2015 income tax return.  An annual credit is provided in the following amounts:

   - $110 ($100 for Jul 2015 to Jun 2016) for an individual
   - $55 ($50 for Jul 2015 to Jun 2016) for a spouse, common-law partner, or an eligible dependant
   - supplement of 0.5% of adjusted family net income over $30,000, to a maximum of $55 ($50 for Jul 2015 to Jun 2016).

The total of the credit calculated above is reduced by 2% of adjusted family net income over $50,000.

The refundable sales tax credit is administered by Canada Revenue Agency (CRA).  See the CRA information on this credit.

PEI Refundable Volunteer Firefighter Tax Credit

Only residents of Prince Edward Island can claim this credit.  It can be claimed if the taxpayer is eligible for the federal volunteer firefighter tax credit claimed on line 362 of the federal Schedule 1 of the tax return.  If eligible, an amount of $500 is claimed on line 84 of form PE428, and on line 479 of the federal tax return.

Revised: September 19, 2017

 

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