Prince Edward Island Personal Income Tax Rates and Calculator (2026)
1. PEI 2026 Provincial Tax Brackets
PEI moved to a more finely tiered set of brackets starting in 2026, and raised its basic personal amount to $15,000. PEI's basic personal amount (BPA) is $15,000 — income up to this amount owes no provincial tax.
| Taxable income (provincial) | Provincial marginal rate |
|---|---|
| $0 – $33,928 | 9.5% |
| $33,928 – $65,820 | 13.47% |
| $65,820 – $106,890 | 16.6% |
| $106,890 – $142,250 | 17.62% |
| $142,250 – $200,000 | 19% |
| Above $200,000 | 20% |
The table above shows the statutory provincial bracket rates. Actual tax owed also includes federal tax (see section 3) and is reduced by the basic personal amount and other credits — so your real total is best estimated using section 2 below.
2. Estimated Tax by Income Level (Federal + Provincial)
The figures below assume employment income only (T4), single, basic credits only, and include federal tax, PEI provincial tax, and CPP/EI contributions. "Take-home pay" is the amount remaining after all income tax and CPP/EI.
| Annual income | Income tax owed | Average rate | Marginal rate | Take-home pay |
|---|---|---|---|---|
| $50,000 | $7,800 | 15.6% | 27.5% | $38,619 |
| $80,000 | $17,306 | 21.6% | 37.1% | $57,125 |
| $120,000 | $32,294 | 26.9% | 43.6% | $81,936 |
| $200,000 | $68,546 | 34.3% | 48.3% | $125,684 |
Average rate = income tax ÷ income; marginal rate = the percentage taxed on your next $1,000 earned. For dividends, capital gains, self-employment, or rental income, use the calculator.
3. 2026 Federal Tax Rates (Nationwide)
| Taxable income | Federal marginal rate |
|---|---|
| $0 – $58,523 | 14% |
| $58,523 – $117,045 | 20.5% |
| $117,045 – $181,440 | 26% |
| $181,440 – $258,482 | 29% |
| Above $258,482 | 33% |
The federal basic personal amount for 2026 is up to roughly $16,452 (phasing down to about $14,829 for higher earners). Federal and provincial tax are filed together and paid together to the CRA.
Frequently Asked Questions
Is the rate in the table the final percentage I pay?
No. Bracket rates are the marginal rate for each bracket, and represent only the provincial or federal portion on its own. What comes closest to your actual rate is the average tax rate in section two — it adds federal and provincial tax together and subtracts the basic personal amount and other credits.
Do I file federal and provincial tax separately?
In most provinces you file a single federal return that combines federal and provincial tax, paid together to the CRA. Quebec is the exception (a separate provincial return is required).
What's different between 2025 and 2026?
Bracket thresholds are indexed to inflation each year, and the basic personal amount is adjusted too, so the same income generally owes slightly less tax in 2026 than in 2025. The calculator lets you switch between the 2025 / 2026 tax years to compare.
How are dividends and capital gains taxed?
Eligible dividends are "grossed up" before a credit is applied, resulting in an effective rate lower than employment income; capital gains are 50% included in taxable income. You can model all of this directly in the tax calculator.