Prince Edward Island Tax Brackets and Rates 2026
Prince Edward Island has 6 provincial tax brackets in 2026, from 9.50% to 20.00%, on top of five federal brackets from 14% to 33%. The tables below give every threshold, the basic personal amounts, and the combined marginal rate at common incomes, verified against the CRA and Prince Edward Island Finance on September 7, 2026.
Prince Edward Island income tax brackets 2026
| Taxable income | Prince Edward Island rate |
|---|---|
| Up to $33,928 | 9.50% |
| $33,929 to $65,820 | 13.47% |
| $65,821 to $106,890 | 16.60% |
| $106,891 to $142,520 | 17.62% |
| $142,521 to $200,000 | 19.00% |
| Over $200,000 | 20.00% |
Basic personal amount: $15,000. Credit rate: 9.50%. Prince Edward Island added a 20% bracket above $200,000 for all of 2026 in April. Employers withhold at a catch-up 21% on that slice from July, so high-income paycheques differ from this full-year figure.
Federal income tax brackets 2026
| Taxable income | Federal rate |
|---|---|
| Up to $58,523 | 14.0% |
| $58,524 to $117,045 | 20.5% |
| $117,046 to $181,440 | 26.0% |
| $181,441 to $258,482 | 29.0% |
| Over $258,482 | 33.0% |
Federal basic personal amount: $16,452, falling to $14,829 for net income above $258,482. Indexation for 2026: 2.0% federal, 0.0% Prince Edward Island.
Combined marginal and average rates in Prince Edward Island, 2026
Marginal rate is the combined federal and Prince Edward Island income tax on the next dollar of ordinary income (pension, interest, self-employment). Average rate is total income tax divided by income for an employee at that salary, after the basic credits.
| Income | Marginal rate | Income tax (employee) | Average rate |
|---|---|---|---|
| $30,000 | 23.5% | $2,626 | 8.8% |
| $50,000 | 27.5% | $7,589 | 15.2% |
| $60,000 | 34.0% | $10,214 | 17.0% |
| $75,000 | 37.1% | $15,315 | 20.4% |
| $100,000 | 37.1% | $24,441 | 24.4% |
| $125,000 | 43.6% | $34,265 | 27.4% |
| $150,000 | 45.0% | $45,258 | 30.2% |
| $200,000 | 49.3% | $68,332 | 34.2% |
| $250,000 | 49.3% | $92,968 | 37.2% |
| $300,000 | 53.0% | $119,112 | 39.7% |
Other 2026 figures that matter in Prince Edward Island
- CPP: 5.95% on earnings between $3,500 and $74,600, plus 4% CPP2 to $85,000.
- EI: 1.63% up to $68,900.
- TFSA limit $7,000; RRSP limit $33,810; FHSA $8,000 a year.
- OAS clawback threshold $95,323 of 2026 net income.
- Capital gains inclusion rate 50%; eligible dividend tax credit 10.50% provincial plus 15.02% federal of the grossed-up amount.
Use the Prince Edward Island take-home pay calculator or the income tax estimator to apply these to your own income.
Other provinces
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Sources
Every figure on this page comes from one of these primary sources. Data last verified .
- CRA T4127 Payroll Deductions Formulas, 122nd Edition, effective January 1, 2026 (Rev. 26/05)
- CRA – CPP contribution rates, maximums and exemptions
- CRA – Second additional CPP (CPP2) contribution rates and maximums
- ESDC – EI maternity and parental benefits: how much you could receive
- CRA – EI premium rates and maximums
- CRA – Indexation adjustment for personal income tax and benefit amounts
- Prince Edward Island Income Tax Act (consolidated 2026)
- CRA, T4127 Payroll Deductions Formulas, 123rd edition (July 1, 2026)