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Prince Edward Island Budgets
All proposed tax measures are subject to legislative approval.
2024 PEI Budget - February 29, 2024
- on PEI website
 | Increases for 2025
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| Introducing a new monthly Children's Benefit starting January 2025 | ||||||||||||||||||||||||||||||||||||||||
| Provide tax rebates for newly constructed multi-unit residential buildings, including rebates of HST and property tax rebates through the Residential Unit Development Incentive program that provides financial support to encourage the development of new rental units. | ||||||||||||||||||||||||||||||||||||||||
See Appendix VII, Provincial Tax Changes by Calendar Year, in Estimates of Revenue and Expenditures.
As of October 15, 2024, no bill had been tabled for the income tax changes.
2023 PEI Budget - May 25, 2023
- on PEI website
Bill 14, An Act to Amend the Income Tax Act
Tax Measures:
| Basic personal amount increased to $12,750 for 2023, and $13,500 for 2024. |
| Spousal amount increased to $10,829 for 2023, and $11,466 for 2024. |
| 2024 will see additional tax brackets, with lower tax rates for the first 3 brackets - see PEI table of 2024 tax rates. |
| The lowest tax bracket tax rate is reduced in 2024 from 9.8% to 9.65%, which will be used to calculate non-refundable tax credits. |
| The 10% surtax is eliminated for 2024 and later years. |
| Age amount increased to $4,679 for 2023, threshold increased to $30,879. |
| Age amount increased to $5,595 for 2024, threshold increased to $33,740. |
| Low income tax reduction threshold increased for 2023 to $20,750, and to $21,500 for 2024. |
| Children's Wellness Tax Credit amount increased from $500 to $1,000 for 2024. |
2022 PEI Budget - February 24, 2022
- on PEI website
Bill 63, An Act to Amend the Income Tax Act (No.2) Royal Assent May 6, 2022
Bill 64, An Act to Amend the Income Tax Act (No.3) Royal Assent May 6, 2022
Bill 85, An Act to Amend the Income Tax Act (No. 4) Royal Assent December 1, 2022
Tax Measures:
| Basic Personal Amount (BPA) increases by $750 to $12,000 for 2023 |
| Spouse/eligible dependant amount increases to $10,192 from $9,555 for 2023 |
| new tax on vaping products |
| increased tobacco taxes |
| carbon tax increase (as per plan) April 1, 2022 |
| Bill 64 increases the refundable sales tax credit for an individual from $110 to $670 as a rebate of carbon tax, for July 2022. |
| Bill 85 increases the refundable sales tax credit again, for the month of January 2023. |
| Bill 63 expands the volunteer firefighter tax credit to include volunteer search and rescue personnel, and increases the amount to $1,000 from $500, for 2022 and later years |
There are other non-tax measures.
2021 Fall Fiscal and Economic Update - November 5, 2021
- on PEI website, no tax changes
2021 PEI Budget - March 12, 2021
- on PEI website
Bill 37, An Act to Amend the Income Tax Act Royal Assent November 17, 2021
Tax Measures effective Jan 1, 2022:
| increase in Basic Personal Amount to $11,250 from $10,500 | ||||
| increase in Low-Income Tax Reduction Threshold to $20,000 from $19,000 | ||||
| Small Business Tax rate reduced to 1% - see resulting reduction of the non-eligible dividend tax credit below. | ||||
| Not announced in the budget, but included in Bill 37:
|
There are many other non-tax measures.
2020 PEI Budget - June 17, 2020
- on PEI website
- Bill No. 58, An Act to Amend the Income Tax Act (No. 2) - Royal Assent July 14, 2020.
Tax Measures effective Jan 1, 2021:
- Small Business Tax Reduction to 2% from 3%
- Non-eligible dividend tax credit reduced to 15% from 21%
- Basic Personal Amount increase to $10,500 from $10,000
- Spouse/equivalent to spouse amount increased to $8,918 from $8,481, reduced by spousal/dependant income over $891.
- Tax threshold for low-income Islanders increase to $19,000 from $18,000
- New $500 non-refundable Children's Wellness tax credit
See Budget Highlights (pdf)
2019 PEI Budget - June 25, 2019 - on PEI website
- after April 23rd election which saw the Progressive Conservatives taking over, with a minority government.
Bill 12, An Act to Amend the Income Tax Act received Royal Assent (became law) July 12, 2019.
Tax highlights:
- Increase basic personal amount from $9,160 to $10,000 for 2020, with proportionate changes to the spouse/equivalent to spouse amounts, which will increase to $8,493.
- Increase the low-income tax reduction threshold from $17,000 to $18,000 for 2020.
- Reduce the small business tax rate from 3.5% to 3.0%, for taxation years which begin on or after January 1, 2020.
2018 Budget - April 6, 2018 - on PEI website
See Bill No. 33, An Act to Amend the Income Tax Act and Bill No. 57, An Act to Amend the Income Tax Act (No. 2)
- Small
business tax cut: Rate will decrease by 0.5% effective January 1, 2018
(as per Bill 33)
- the
non-eligible dividend tax credit rate was reviewed, and will not change, as
per the PEI Department of Finance
- New Small Business Investment Grant for 15% rebate on
business investments up to $25,000.
- Basic Personal Amount will increase by $500 for 2018, to
$8,660, and a further $500 for 2019. The spouse and equivalent-to-spouse
(eligible dependant) amounts will increase proportionately.
- Provincial portion of HST on first block of residential
electricity will be rebated directly on electricity bills each month.
- Provincial portion of HST will also be rebated on firewood,
pellets and propane through a point of sale credit or rebate.
2017 Budget Highlights - April 7, 2017 - on PEI website. See also Bill No. 73, An Act to Amend the Income Tax Act.
- Basic Personal Amount increased by 2% for
2017 to $8,160
- Spouse and Equivalent to Spouse increased by 2% for 2017 to
$6,931
- Provincial Education
Amount preserved for 2017 and subsequent taxation years
2016 Budget Highlights - April 19, 2016 - on PEI website
- HST will increase from 14% to 15% effective
October 1, 2016 - see 2016 Sales
Tax Rates.
- Real Property Transfer Tax rate payable by first-time home buyers
will be eliminated (is currently 1%) effective October 1, 2016
- Non-Refundable Tax
Credit amount increases for 2016:
- Basic personal amount
increased from $7,708 to $8,000
- Spousal amount
increased from $6,546 to $6,795
- Eligible dependant
amount increased from $6,294 to $6,795 (now same as spousal amount)
- Low-Income
Tax Reduction amounts have been increased.
- Non-eligible
dividend tax credit was left at 21% of gross-up.
- Refundable
Sales Tax Credit amounts increases for the 2016/17 year:
- Base increased from
$100 to $110
- Spouse or equivalent to
spouse increased from $50 to $55
- Supplement increased
from $50 to $55
See Bill 32 An Act to Amend the Income Tax Act, on the PEI Legislative Assembly website. Bill 32 received Royal Assent on May 13, 2016.
2015 Budget Highlights - June 19, 2015 - on PEI website
- after May 4, 2015 election in which the Liberals were re-elected
- low income tax reduction threshold increased from
$15,000 to $17,000, levels of basic credits to be adjusted (no detail yet
provided)
- tax on tobacco to increase by 2.5 cents per cigarette and other tobacco
by 4.0 cents per gram
2014 Budget Address - April 8, 2014 - on PEI website(no tax changes)
2013 Budget Address - March 27, 2013 - on PEI website
Several changes are being implemented in conjunction with the implementation of the HST effective April 1, 2013:
- Small business tax rate increases to 4.5% from 1% on
April 1, 2013.
- Dividend tax credit for non-eligible dividends will
be adjusted, as per Bill 47, from 5% of gross-up to 14.5% of
gross-up.
- Provincial tax on gasoline will be reduced by 2.7
cents to 13.1 cents per litre.
- Taxes on tobacco will be adjusted
- A provincial refundable tax credit will be introduced for low and
modest-income Islanders, beginning in July 2013.
2012 Budget Address April 18, 2012 - on PEI website
- HST to be introduced effective April 1, 2013 with a total rate of 14%, compared to the current combined sales tax rate of 15.5%. The 9% provincial portion of the HST will not be applied to home eating oil, or children's clothing or footwear. An enhanced refundable tax credit will be created for Islanders with low to moderate incomes. See PEI Harmonized Sales Tax (HST) on the PE website.
- new $500 refundable income tax credit for volunteer firefighters with at least 200 hours of volunteer service per year
2011 Budget April 6, 2011 - on PEI website (no tax changes)
2010 Budget April 23, 2010 - on PEI website (no tax changes)
2009 Budget April 6, 2009 - on PEI website (no tax changes)
2008 Budget April 23, 2008
2007 Budget April 10, 2007
Revised: October 15, 2024