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PEI tax on your income starts at 9.5% on the first $33,928 of taxable income in 2026 and climbs to 20% above $200,000. That’s the province’s share. You also pay federal tax, and PEI adds 15% HST on most purchases. The search term “PEI tax” is vague, so we’ve assumed you mean personal income tax and sales tax, not property tax.
What are the PEI tax brackets for 2026?
| Taxable income | PEI rate |
|---|---|
| Up to $33,928 | 9.5% |
| $33,928 to $65,820 | 13.47% |
| $65,820 to $106,890 | 16.6% |
| $106,890 to $142,520 | 17.62% |
| $142,520 to $200,000 | 19% |
| Over $200,000 | 20% |
Each rate only touches the slice of income inside its band. Earning $70,000 doesn’t mean all of it is taxed at 16.6%. The CRA’s 2026 tax rates page lists these six bands and no PEI surtax. One small wrinkle: a CRA payroll table we saw shows the fourth limit as $142,250, so if your income sits right there, check your own return. The difference is tiny.
Is PEI tax high compared with Ontario?
At mid incomes, yes. We used our income tax calculator engine with $60,000 of taxable income and only the basic personal amounts claimed. PEI’s provincial tax comes to $5,310.06. Ontario’s is $3,224.52, including the $600 health premium. On top of that the federal tax is $6,192.73 in both cases. So the same person pays about $11,503 in PEI and about $9,417 in Ontario.
That gap shrinks at the very top, since Ontario adds a surtax, though we didn’t run those numbers for PEI.
What does the tax look like at $100,000?
Take $100,000 of taxable income and the basic amounts only. PEI tax is $11,767.89 and federal tax is $14,392.73, so $26,160.62 in all. That’s before CPP and EI, which aren’t part of income tax and come off your pay too. Your real bill will differ once RRSP deductions and credits arrive. The marginal tax rate calculator tells you what an extra $1,000 would cost, which is the number you want when weighing a raise or an RRSP deposit.
What does a raise cost you in PEI?
Take Jordan in Charlottetown, at $70,000. Jordan’s next dollar falls in the 16.6% PEI band and the 20.5% federal band, so 37.1% before credits and before CPP and EI. On a $1,000 raise that’s $371 to the taxman, leaving $629 before CPP and EI. It’s also the number to use for an RRSP deposit, because the deduction saves tax at that top rate: a $2,000 contribution would trim about $742 from the bill. The tax credits calculator covers the credits that soften the blow, federal ones only.
Which bracket are you in, really?
Brackets apply to taxable income, not to your salary. Taxable income is what’s left after deductions such as RRSP contributions, so a $75,000 earner who puts $10,000 into an RRSP is taxed as if they made $65,000, which pulls them just under the 16.6% line. Look at line 26000 of last year’s return to see your own figure, then match it against the table. If you’re a few hundred dollars over a boundary, that slice is the only part taxed at the higher rate, so there’s no cliff to worry about.
What about HST in PEI?
HST is 15%: a 10% provincial part and the 5% federal GST. It applies to most goods and services, and it’s built into what you pay at the till, so you’ll see it added at checkout. The GST/HST calculator adds it to a price or backs it out of a total. The CRA’s GST/HST rate page shows PEI at 14% until September 30, 2016, and 15% since then. It shows no change in 2025. Check the province’s page before a big purchase, since rates can change.
What gaps does this page have?
Three traps. First, the top bracket. The CRA’s rate page shows a 20% band above $200,000 for 2026, but we couldn’t confirm on an official page how it applies across the year, so a paycheque may not match your return.
Second, low-income relief. PEI has a reduction for low incomes, which this calculator leaves out. Third, don’t use this for a business or a property bill. Property assessment, corporate rates and the like are separate, and we haven’t covered them here.
Where this information comes from
Brackets are from the Canada Revenue Agency‘s page on 2026 tax rates and income brackets, re-read in October 2026. The 15% HST rate is from CRA and PEI government pages on the harmonized sales tax. Dollar examples come from our own engine with 2026 figures. This site isn’t linked to the CRA or the government of PEI.
Frequently asked questions
What is the lowest PEI tax rate in 2026?
9.5% on taxable income up to $33,928.
What is the top PEI rate?
20% on taxable income above $200,000, per the CRA rate page.
What is the HST rate in PEI?
15%, made up of 10% provincial tax and 5% GST.
Does PEI have a surtax?
The CRA's 2026 rate page shows none.
Does this cover property tax?
No. We assumed the search meant income tax and sales tax.
- How Canadian income tax works: brackets and credits
How federal and provincial Canadian income tax stack up, what marginal and average rates mean, and how credits and deductions change your bill
- Prince Edward Island income tax and HST in 2026
How Prince Edward Island income tax works in 2026: six brackets with a new 20% top rate, a $15,000 basic personal amount, the 15% HST and calculators