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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’s tax picture changed for 2026, and some of the news you’ve read may be ahead of what applies to your return. Here’s what we know, where we’re less sure, and how it adds up.
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%. 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.
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. Our figures come from the CRA and secondary tax summaries, and one source puts the fourth limit at $142,250. The gap is at most $3.73 of tax.
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. The GST and HST calculator works for the island, and the sales tax guide compares the provinces.
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
You’ll want to check three things before you act on any figure here, because rates and credits do change and you wouldn’t want an old number in a real return: the date at the top of the page, the CRA source we name, and your own slip or notice, which always wins if it differs from a summary like this one.
Don’t guess.
Not sure where to start? Our filing guide walks you through the steps, the document checklist shows what you’ll need, and the province index lets you compare where you live with other places. Is your situation unusual? Then a qualified preparer is the right call, and we can’t advise you ourselves.
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.
Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.