Prince Edward Island 2021 and 2020 Personal Marginal Income Tax Rates

The Prince Edward Island tax brackets and personal tax credit amounts are not increased for inflation.

The Federal tax brackets and personal tax credit amounts are increased for 2021 by an indexation factor of 1.010.

The indexation factors, tax brackets and tax rates have been confirmed to Canada Revenue Agency information.

The PEI 2020 Budget increased the basic personal amount to $10,500 for 2021, with a proportional increase to the spouse/equivalent to spouse amount. The non-eligible dividend tax credit was reduced from 2.74% to 1.96% of the taxable dividend.

If Prince Edward Island used indexing, their tax brackets and personal amounts would have been increased for 2021 by an indexation factor of 1.005.

Tax Tip: read the article Understanding the Tables of Personal Income Tax Rates, especially if you are trying to compare the rates below to the marginal tax rates in the Basic Tax Calculator.

Prince Edward Island Personal Income Tax Brackets and Tax Rates Before Surtax
2021 Taxable Income	2021 Tax Rates	2020 Taxable Income	2020 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
2021 Taxable Income	2021 Marginal Tax Rates				2020 Taxable Income	2020 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%	15.88%	first $31,984	24.80%	12.40%	-0.99%	14.98%
over $31,984 up to $49,020	28.80%	14.40%	4.53%	20.48%	over $31,984 up to $48,535	28.80%	14.40%	4.53%	19.58%
over $49,020 up to $63,969	34.30%	17.15%	12.12%	26.81%	over $48,535 up to $63,969	34.30%	17.15%	12.12%	25.91%
over $63,969 up to $98,040	37.20%	18.60%	16.12%	30.14%	over $63,969 up to $97,069	37.20%	18.60%	16.12%	29.24%
over $98,040 up to $99,783	42.70%	21.35%	23.71%	36.47%	over $97,069 up to $99,490	42.70%	21.35%	23.71%	35.57%
over $99,783 up to $151,978	44.37%	22.19%	24.56%	38.16%	over $99,490 up to $150,473	44.37%	22.19%	24.56%	37.17%
over $151,978 up to $216,511(1)	47.69%	23.85%	29.15%	41.98%	over $150,473 up to $214,368(1)	47.59%	23.80%	29.01%	40.87%
over $216,511	51.37%	25.69%	34.22%	46.21%	over $214,368	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
2021					2020
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				$99,783	Person with only basic personal amount - surtax starts at taxable income of				$99,490
The surtax is calculated based on the net tax payable after deducting personal tax credits.
Prince Edward Island Basic Personal Amount
2021 Personal Amount	2021 Tax Rate				2020 Personal Amount	2020 Tax Rate
$10,500	9.8%				$10,000	9.8%
Federal Basic Personal Amount
2021 Personal Amount (1)	2021 Tax Rate				2020 Personal Amount (1)	2020 Tax Rate
$13,808	15%				$13,229	15%

(1) See the federal tax rates page for information on the federal personal amount increase.

The marginal tax rates above have been adjusted to reflect these changes.

Revised: October 26, 2023