Prince Edward Island Sales Tax (HST) Calculator 2025

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Sales Taxes in Prince Edward Island

Prince Edward Island is one of the provinces in Canada that charges a 15% Harmonized Sales Tax (HST), the highest combined provincial and federal rate applied in Canada. The HST applies to most goods and services, although some categories are exempt or rebated from it.

The HST was adopted in Prince Edward Island on April 1st, 2013. The HST is made up of two components: an 10% provincial sales tax and a 5% federal sales tax. It increased from 14% to 15% in 2016.

Most exemptions and rebates to the federal 5% portion of the HST also apply to the provincial 10% portion. There are also categories of goods and services that are not charged the provincial portion of HST. These rebates and exemptions are separate from the ones granted on a national level.

These categories include:

1. Heating oil
2. Books, including audiobooks
3. Children’s clothing and footwear

More information can be found in the Government of Prince Edward Island’s documentation.

Registered First Nations are granted rebates on both the provincial and federal portions of the HST for products and services bought and used on a reserve in Prince Edward Island. See the Government of Canada's website’s GST/HST and First Nations peoples page for more information.

There are two types of exemptions for HST: direct exemptions and zero-rated goods and services. The difference is related to how businesses handle costs related to the exemptions, but as a consumer, you would not have to pay HST on items from either category.

Goods and services that are zero-rated from the federal portion of the HST include:

• Basic groceries, including meats, fish, cereals, dairy products, eggs, vegetables, coffee, tea. Some foods including snack foods, liquor, and carbonated beverages are charged HST.
• Prescription drugs, but not any drugs available over-the-counter (OTC).
• Medical devices
• Feminine hygiene products

Goods and services that are directly exempt from the federal portion of the HST include:

• Residential resales of property that has been previously owned and used
• Rental accommodations of longer than a month
• Educational services that lead to a certificate or diploma or are required for a certain practice
• Medical and dental services
• Financial services such as bank fees
• Legal aid services
• Day-care services

Sales taxes form Prince Edward Island's second largest tax revenue stream after income taxes. Based on the province’s budget for 2025-26, the revenue from the provincial portion of the HST is estimated to be approximately $520 million, nearly 32% of the provincial government’s total tax revenue and about 16% of the total revenue.

Sales taxes form a sizeable portion of the Canadian government’s revenue. The GST (Goods and Services Tax) is projected to generate $55.3 billion in revenue, equating to 10.8% of the total federal government revenue, in the fiscal year 2025-26.