PEI Income Tax Brackets Changes
PEI introduced additional tax brackets and revised the tax rates in 2024. The changes are outlined in the table below.
PEI Income Tax Bracket Changes 2023 - 2024
| 2023 Taxable Income | 2023 Tax Rates | 2024 Taxable Income | 2024 Tax Rates |
|---|---|---|---|
| Up to $31,984 | 9.8% | Up to $32,656 | 9.65% |
| Over $31,984 to $63,969 | 13.8% | Over $32,656 up to $64,313 | 13.63% |
| Above $63,969 | 16.7% | Over $64,313 to $105,000 | 16.65% |
| - | - | Over $105,000 to $140,000 | 18.00% |
| - | - | Above $140,000 | 18.75% |
PEI's basic personal amount will be increasing from $12,750 in 2023 to $13,500 in 2024.
PEI Personal Amounts 2024
| 2023 | 2024 | |
|---|---|---|
| Basic Personal Amount | $12,750 | $13,500 |
| Spouse/Common-Law Partner | $10,192 | 11,466 |
| Eligible Dependant | $10,192 | 11,466 |
Prince Edward Island Surtax Eliminated
PEI's surtax is an additional tax on the amount of net provincial tax payable. Till 2023, those who owed over $12,500 in PEI Tax had to pay a surtax of 10% on the tax amount over $12,500. The surtax was eliminated for 2024 and beyond.
PEI Low Income Tax Reduction
You may claim this tax credit if you qualify as a low-income individual or family in PEI. For 2023, the maximum amount that can be claimed was $350 for oneself and $350 for a spouse or common-law partner. An amount of $300 can be claimed for each child.
PEI Young Child Tax Credit
If you have a dependent child who is younger than six years old, you can claim $100 per month. If you have a spouse/common-law partner, only the lower-income partner can claim this tax credit.
PEI Volunteer Firefighter Tax Credit
You may claim this tax credit if you were a volunteer firefighter and a resident of Prince Edward Island. This tax credit provides a refundable tax credit of $500.