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PEI 2015 and 2016 Personal Tax Rates

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Prince Edward Island   ->   Tax Rates ->   2015 & 2016 Tax Rates -> PEI 2015 & 2016 Income Tax Rates

Prince Edward Island 2015 and 2016 Personal Marginal Income Tax Rates

The Federal tax rates for 2016 are as per Bill C-2 tabled in December 2015.  The Prince Edward Island tax brackets and personal tax credits are not increased for inflation.  The Federal tax brackets and personal amount were increased for 2016 by an indexation factor of 1.013.  The indexation factors, tax brackets and tax rates have been confirmed to Canada Revenue Agency information.

The 2016 marginal tax rate for non-eligible dividends reflects the rate that is in effect automatically due to the change in the gross-up rate for 2016.  The PEI government would have to make legislative amendments in order for this to change.

Please read the article Understanding the Tables of Personal Income Tax Rates.

Prince Edward Island Personal Income Tax Brackets and Tax Rates Before Surtax

2016 Taxable Income 2016 Tax Rates 2015 Taxable Income 2015 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

2016 Taxable Income 2016 Marginal Tax Rates 2015 Taxable Income 2015 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% 13.14% first $31,984 24.80% 12.40% -0.99% 12.48%
over $31,984 up to $45,282 28.80% 14.40% 4.53% 17.82% over $31,984 up to $44,701 28.80% 14.40% 4.53% 17.20%
over $45,282 up to $63,969 34.30% 17.15% 12.12% 24.25% over $44,701 up to $63,969 35.80% 17.90% 14.19% 25.46%
over $63,969 up to $90,563 37.20% 18.60% 16.12% 27.64% over $63,969 up to $89,401 38.70% 19.35% 18.19% 28.89%
over $90,563 up to $98,316 42.70% 21.35% 23.71% 34.08% over $89,401 up to $98,145 42.70% 21.35% 23.71% 33.61%
over $98,316 up to $140,388 44.37% 22.19% 24.56% 35.68% over $98,145 up to $138,586 44.37% 22.19% 24.56% 35.20%
over $140,388 up to $200,000 47.37% 23.69% 28.70% 39.19% over $138,586 47.37% 23.69% 28.70% 38.74%
over $200,000 51.37% 25.69% 34.22% 43.87%  

Marginal tax rate for dividends is a % of actual dividends received (not grossed-up 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 17% for 2016, 18% for 2015.
For more information see Prince Edward Island dividend tax credits.

Prince Edward Island Surtaxes

2016 2015
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 $98,316 Person with only basic personal amount - surtax starts at taxable income of $98,145

The surtax is calculated based on the net tax payable after deducting personal tax credits.

Prince Edward Island Basic Personal Amount

2016 Personal Amount 2016 Tax Rate 2015 Personal Amount 2015 Tax Rate
$8,000 9.8% $7,708 9.8%

Federal Basic Personal Amount

2016 Personal Amount 2016 Tax Rate 2015 Personal Amount 2015 Tax Rate
$11,474 15% $11,327 15%

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Revised: October 03, 2017

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