Prince Edward Island 2020 and 2019 Personal Marginal Income Tax Rates

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

The Prince Edward Island tax brackets and personal tax credits are not increased for inflation. The Federal tax brackets and personal amount are increased for 2020 by an indexation factor of 1.019. The indexation factors, tax brackets and tax rates have been confirmed to Canada Revenue Agency information.

The PEI 2019 Budget increased the basic personal amount to $10,000 for 2020, with a proportional increase to the spouse/equivalent to spouse amount.

Prince Edward Island Personal Income Tax Brackets and Tax Rates Before Surtax
2020 Taxable Income	2020 Tax Rates	2019 Taxable Income	2019 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
2020 Taxable Income	2020 Marginal Tax Rates				2019 Taxable Income	2019 Marginal Tax Rates
	Other Income	Capital Gains	Canadian Dividends			Other Income	Capital Gains	Canadian Dividends
	Other Income	Capital Gains	Eligible	Non-Eligible		Other Income	Capital Gains	Eligible	Non-Eligible
first $31,984	24.80%	12.40%	-0.99%	14.98%	first $31,984	24.80%	12.40%	-0.99%	14.98%
over $31,984 up to $48,535	28.80%	14.40%	4.53%	19.58%	over $31,984 up to $47,630	28.80%	14.40%	4.53%	19.58%
over $48,535 up to $63,969	34.30%	17.15%	12.12%	25.91%	over $47,630 up to $63,969	34.30%	17.15%	12.12%	25.91%
over $63,969 up to $97,069	37.20%	18.60%	16.12%	29.24%	over $63,969 up to $95,259	37.20%	18.60%	16.12%	29.24%
over $97,069 up to $99,490	42.70%	21.35%	23.71%	35.57%	over $95,259 up to $98,997	42.70%	21.35%	23.71%	35.57%
over $99,490 up to $150,473	44.37%	22.19%	24.56%	37.17%	over $98,997 up to $147,667	44.37%	22.19%	24.56%	37.17%
over $150,473 up to $214,368	47.59%	23.80%	29.01%	40.87%	over $147,667 up to $210,371	47.37%	23.69%	28.70%	40.62%
over $214,368	51.37%	25.69%	34.22%	45.22%	over $210,371	51.37%	25.69%	34.22%	45.22%
Marginal tax rate for dividends is a % of actual dividends received (not grossed-up taxable 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 15%. For more information see Prince Edward Island dividend tax credits.
Prince Edward Island Surtaxes
2020					2019
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				$99,490	Person with only basic personal amount - surtax starts at taxable income of				$98,997
The surtax is calculated based on the net tax payable after deducting personal tax credits.
Prince Edward Island Basic Personal Amount
2020 Personal Amount	2020 Tax Rate				2019 Personal Amount	2019 Tax Rate
$10,000	9.8%				$9,160	9.8%
Federal Basic Personal Amount
2020 Personal Amount (1)	2020 Tax Rate				2019 Personal Amount	2019 Tax Rate
$13,229	15%				$12,069	15%

(1) The 2020 federal personal amount is increased from $12,298 to $13,229 for taxpayers with net income of $150,473 or less. For incomes above this threshold, the additional amount of $931 is reduced until it becomes zero at net income of $214,368. The marginal tax rates above have been adjusted to reflect this change.

Revised: October 26, 2023