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PEI Personal Tax Credits & Tax Reduction

Non-Refundable Personal Tax Credits Tables - federal & all provinces and territories

Dividend Tax Credits

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 PEI 2023 Budget increased the threshold to $20,750.

Low Income Tax Reduction	2023	2022	2021	2020	2016 - 2019	2015	2014 & earlier
Self	350	350	350	350	350	300	250
Spouse or equivalent	350	350	350	350	350	300	250
Child age 18 or less	300	300	300	300	300	250	200
Each spouse age 65+	250	250	250	250	250	250	0
Income threshold	20,750	20,000	19,000	18,000	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 Children's Wellness Tax Credit - Non-Refundable

	Effective starting January 1, 2021, amount of $500.
	Maximum amount increased to $1,000 for 2024 by 2023 Budget.
	For children under the age of 18.
	For eligible activities related to children's well-being, which could include sports, arts, cultural camps and activities for 8 weeks or 5 consecutive days of activity
	Credit can be shared between parents.
	Receipts must be kept to claim this credit.

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 to June based on the prior year income tax return. An annual credit is provided in the following amounts:

	$110 for an individual - increased to $670 for July 2022 as per Bill 64, and to $2,110 for January 2023 as per Bill 85 - see PEI 2022 Budget.
	$55 for a spouse, common-law partner, or an eligible dependant, increased to $2,055 for January 2023 as per Bill 85.
	supplement of 0.5% of adjusted family net income over $30,000, to a maximum of $55.

The total of the credit calculated above is reduced by 2% of adjusted family net income over $50,000. This is increased to 4% by Bill 64 for July 2022, and to 9% by Bill 85 for January 2023, with threshold increased from $50,000 to $100,000 for January 2023.

The refundable sales tax credit is administered by Canada Revenue Agency (CRA). See Prince Edward Island Sales Tax Credit on the CRA website.

PEI Refundable Volunteer Firefighter and Volunteer Search and Rescue Personnel Tax Credit

Only residents of Prince Edward Island on December 31st of the taxation year can claim this credit. If the taxpayer has died in the year, they must have been a resident of PEI on the date of death.

For 2021 and earlier years, the refundable volunteer firefighter tax credit can be claimed if the taxpayer is eligible for the federal volunteer firefighter tax credit claimed on line 31220 of the federal tax return. If eligible, an amount of $500 is claimed on line 100 of form PE428, and on line 47900 of the federal tax return. See also the federal volunteer firefighter or search and rescue tax credit.

For 2022 and later years, as proposed by the PEI 2022 Budget, the refundable tax credit has been expanded to include volunteer search and rescue personnel, and the amount of the tax credit is increased to $1,000, if the individual is entitle to claim the tax credits on lines 31220 or 31240 of the federal tax return.

Revised: September 20, 2024