Prince Edward Island Tax Brackets 2026: Top Rate 20.00%
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 list each threshold, the basic personal amounts, and the combined marginal rate at common incomes. We checked them 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
The marginal rate is the combined federal and Prince Edward Island tax on the next dollar of ordinary income, such as pension, interest or self-employment income. The 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 see what these mean for your own income.
Frequently asked questions
- What are the Prince Edward Island tax brackets for 2026?
- Prince Edward Island has 6 provincial brackets in 2026, starting at 9.50% on the first $33,928 of taxable income and reaching 20.00% above $200,000. Federal tax is charged on top, from 14% to 33%.
- What is the highest tax rate in Prince Edward Island?
- 53.0% on ordinary income at the top, counting federal and provincial tax together. That is the rate on the next dollar earned, not on the whole income.
- How much income tax do I pay on $75,000 in Prince Edward Island?
- About $15,315 in federal and provincial income tax on a $75,000 salary in 2026, an average rate of 20.4%. CPP and EI are deducted as well, which brings the take-home pay to about $54,316.
- What is the basic personal amount in Prince Edward Island for 2026?
- $15,000 provincially, and $16,452 federally. Income below those amounts is covered by the basic credit, so no tax is due on it.
Other provinces
AlbertaBritish ColumbiaManitobaNew BrunswickNewfoundland and LabradorNorthwest TerritoriesNova ScotiaNunavutOntarioQuebecSaskatchewanYukon
Sources
Every figure on this page comes from one of these primary sources. Data last verified .
- CRA T4127 Payroll Deductions Formulas, 123rd Edition, effective July 1, 2026 (Rev. 26/06)
- 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
- Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 150(1)(d) and s. 156.1(4): filing deadlines and balance-due day
- Canada Employment Insurance Commission – Canada Employment Insurance Commission confirms 2027 Employment Insurance premium rate (September 14, 2026)
- Prince Edward Island Income Tax Act (consolidated 2026)