Updated Checked by the Tax-Services.ca editorial team How we check
Prince Edward Island has six income tax brackets, from 9.5% to 20%, and the top rate applies above $200,000 for all of 2026. The basic personal amount is $15,000, and the HST is 15%.
Prince Edward Island now has a 20% top bracket for 2026, and that’s the piece of news people have usually heard secondhand. On a $60,000 income the provincial tax comes to about $5,310. Below is how that’s worked out, what the HST does at the till, and where the numbers can look different on paper.
What are the brackets for 2026?
The provincial rate is 9.5% on your first $33,928 of taxable income, 13.47% up to $65,820, 16.6% up to $106,890, 17.62% up to $142,520, 19% up to $200,000 and 20% above that. Credits count at 9.5%. These match the CRA’s 2026 tax rates and income brackets. The limits page lists the federal layer.
Take $60,000. The first $33,928 costs you $3,223 and the other $26,072 costs you $3,512, a total of $6,735. The basic personal amount is $15,000, and the credit it earns takes off $1,425, so you’d pay about $5,310 of PEI tax. That’s under 9 cents of provincial tax on each dollar you earn.
Now picture Sam in Charlottetown, who picks up a $1,000 bonus on top of that salary. It lands in the 13.47% bracket, so about $135 goes to the province before the federal share.
What’s different about PEI?
The new 20% bracket is the headline. The province’s budget first put it in 2027, then the finance minister clarified that it applies from January 1, 2026. The CRA’s July payroll tables phase it in during the year, which is why payroll and the annual return can look different.
Brackets this narrow also mean a lot of income sits near a boundary. If you see a fourth limit of $142,250 in a summary somewhere, it’s a typo or a transposition: the CRA table above says $142,520.
How does the HST work here?
You pay 15% HST, made up of the federal 5% and a provincial 10%. A $100 item costs $115, and a $40 pair of boots rings in at $46. Basic groceries carry no HST at all, so you notice the 15% mostly at restaurants, in shops and on services. The GST and HST calculator works for the island, and the sales tax guide compares the provinces.
Do I file a separate PEI return?
No. You file one return, and the provincial tax is worked out on it alongside the federal tax. Other credits will move your final bill, so treat the $5,310 as a ballpark.
Which calculators include it?
The income tax calculator and the take-home pay calculator both include Prince Edward Island. Pick it from the list and the Prince Edward Island rates apply. For a bigger picture, the province index lists the others.
Where to read more
The guide to how income tax works explains the two layers, and the filing guide covers the steps to file.
Before you rely on these numbers
Rates and credits change, so check three things before you act on any figure here: the date at the top of the page, the CRA source named in the text, and your own slip or notice. Your slip or notice wins whenever it differs from a summary like this one.
Don’t guess.
Not sure where to start? The filing guide walks through the steps, the document checklist shows what to gather, and the province index compares other places. Is your situation unusual? A qualified preparer is the right call. This site is independent of the CRA and any government, and can’t advise you on your own return.
What changed for 2026, and what is coming?
- Announced: PEI added a 20% bracket on taxable income above $200,000. The April 14, 2026 budget papers pointed to 2027, but the finance minister clarified on April 22 that it applies from January 1, 2026, and the CRA payroll guide uses it for 2026. Source
- The other 2026 brackets are 9.50% to $33,928, 13.47% to $65,820, 16.60% to $106,890, 17.62% to $142,520 and 19.00% to $200,000. The basic personal amount is $15,000. Source
- The PEI Essentials Benefit replaces the sales tax credit from November 2026. It pays up to $310 a year to a single person and $365 to couples and single parents, with a $175 minimum from July 1, 2026. Source
Checked on official pages in October 2026. Items marked announced or proposed are not final, so confirm them with the province before you plan around them.
Frequently asked questions
How many income tax brackets does PEI have?
Six for 2026, from 9.5% on the first $33,928 up to 20% above $200,000.
Is the 20% top bracket in effect for all of 2026?
Yes, according to the province's clarification that the new rate applies from January 1, 2026. Payroll tables phase it in during the year, so the annual return is what counts.
What is the HST in PEI?
15%, the federal 5% plus a provincial 10%.
Why do sources differ on the fourth bracket?
Some show the limit as $142,250 instead of $142,520. We used $142,520, and the difference changes tax by at most $3.73.