Prince Edward Island Income Tax Calculator 2026

Prince Edward Island tax calculator for 2026: federal + provincial tax, CPP and EI. On $75,000 you take home $54,316 ($4,526 a month). Brackets and marginal rates.

Updated 2026-10-03 · CRA 2026 rates

Take-home pay per month$4,526.31$54,316 · 27.6% average tax rate · 39.6% marginal · 2026

	Per	Per year
Gross income	$6,250.00	$75,000
Federal tax	-$688.22	-$8,259
Provincial tax (Prince Edward Island)	-$588.01	-$7,056
CPP contributions	-$353.87	-$4,246
EI premiums	-$93.59	-$1,123
Take-home pay	$4,526.31	$54,316

Take-home pay $54,316 72.4%
Federal tax $8,259 11.0%
Provincial tax $7,056 9.4%
CPP contributions $4,246 5.7%
EI premiums $1,123 1.5%

Take-home pay vs deductions at every salary (Prince Edward Island, 2026)

Take-home pay
Tax, CPP & EI

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Prince Edward Island tax brackets 2026

Prince Edward Island taxable income over	Rate
$0	9.50%
$33,928	13.47%
$65,820	16.60%
$106,890	17.62%
$142,520	19.00%
$200,000	20.00%

Federal taxable income over	Rate
$0	14.0%
$58,523	20.5%
$117,045	26.0%
$181,440	29.0%
$258,482	33.0%

Prince Edward Island's basic personal amount for 2026 is $15,000. Prince Edward Island low-income tax reduction ($350 less 5% of net income over $23,000), as on Form PE428.

Take-home pay in Prince Edward Island at common salaries (2026)

Salary	Federal tax	Prince Edward Island tax	CPP + EI	Take-home	Per month	Marginal
$30,000	$1,397	$1,216	$2,066	$25,321	$2,110	23.5%
$50,000	$3,985	$3,604	$3,582	$38,829	$3,236	27.5%
$75,000	$8,259	$7,056	$5,370	$54,316	$4,526	37.1%
$100,000	$13,302	$11,140	$5,770	$69,789	$5,816	37.1%
$150,000	$25,302	$19,956	$5,770	$98,973	$8,248	45.0%
$200,000	$38,877	$29,456	$5,770	$125,898	$10,492	49.3%

Key facts

Prince Edward Island’s 2026 income tax rates are 9.5% up to $33,928, 13.47% to $65,820, 16.6% to $106,890, 17.62% to $142,520, 19% to $200,000 and 20% above $200,000 (CRA, 2026 tax rates and income brackets; Income Tax Act s 7).
The 20% bracket on taxable income above $200,000 is new for 2026: PEI introduced it on 14 April 2026, and because employers withheld at 19% for the first half of the year, payroll uses a prorated 21% on that slice from July 2026 (CRA T4127, July 2026 edition).
For 2025 PEI had five brackets: 9.5% up to $33,328, 13.47% to $64,656, 16.6% to $105,000, 17.62% to $140,000 and 19% above (Form PE428, 2025).
The PEI basic personal amount is $15,000 for 2026, up from $14,650 in 2025; the increase was announced on 10 April 2025 (CRA T4127, January 2026 edition).
PEI non-refundable credits are worth 9.5% of the amount claimed, the province’s lowest tax rate (Income Tax Act s 6 “appropriate percentage”; Form PE428).
PEI no longer has a surtax: the 10% surtax on provincial tax above $12,500 applies only to taxation years ending before 2024 (Income Tax Act s 31).
The PEI low-income tax reduction is $350 for the filer, $350 for a spouse or eligible dependant, $300 per other dependent child and $250 for each person aged 65 or over, reduced by 5% of adjusted family net income above $23,000 for 2026 (Income Tax Act s 32; the 2025 threshold was $22,650).
A single PEI filer under 65 gets no low-income tax reduction once net income reaches $30,000, where 5% of the excess over $23,000 cancels the $350 (Income Tax Act s 32 arithmetic).
PEI’s non-refundable amount for young children is $100 per month for each eligible child, claimed on Form PE428 (2025 form; the 2026 form is not yet published).
PEI personal amounts are not automatically indexed for payroll purposes; CRA says “no indexing applies to Prince Edward Island” (CRA T4127, January 2026 edition).
Prince Edward Island moved from 14% to 15% HST on 1 October 2016 (CRA GST/HST rates).
PEI rebates the provincial part of the HST at the point of sale on children’s clothing and footwear, qualifying printed books and home heating oil (CRA GI-063, GI-065 and GI-169).

Other provinces

PEI income tax brackets in practice: a $60,000 worked example

Prince Edward Island taxes income in 6 bands, and you pay each rate only on the slice of income inside its band. On a $60,000 salary, taxable income after the enhanced CPP deduction is $59,435. The table shows how much PEI tax each band produces. Gross PEI tax is $6,658.95. Credits on the $15,000 basic personal amount, base CPP and EI are worth $1,783.60 at 9.5%, which leaves $4,875.35 of PEI tax.

With federal tax of $5,338 and $4,340 of CPP and EI, after-tax income is $45,447, or $3,787 a month. Your average rate is 24.3%. The next dollar you earn is taxed at a combined 34.0%.

PEI band ($60,000 salary)	Rate	Income in band	Tax
$0 – $33,928	9.5%	$33,928	$3,223.16
$33,928 – $65,820	13.47%	$25,507	$3,435.79

What changed in PEI for 2026

PEI made two changes for 2026. The basic personal amount went up, and a new 20% bracket now applies to taxable income above $200,000. The new bracket only affects high earners. At $250,000 it adds $500 compared with taxing that slice at 19%. Your marginal rate on income above $200,000 is now 49.3% combined.

On the return the new rate applies to the whole year, so a $250,000 earner owes the full $500 extra on Form PE428 whatever was withheld. The higher rate CRA's payroll tables use from July is meant to collect the first half-year's shortfall too, but a bonus paid early in the year, a mid-year job change or non-salary income can leave a balance owing on April 30.

The PEI sales tax credit is changing too. The CRA says it becomes the Prince Edward Island essentials benefit in November 2026, with a new minimum payment of $175.

PEI credits and benefits worth claiming

Form PE428 has several credits that this calculator does not include because they depend on your family and spending. The amounts below are for 2025, from the CRA, unless another year is shown:

Children’s wellness amount: up to $1,000 per child for eligible activities (line 58365).
Volunteer firefighter and search and rescue credit: a refundable $1,000 (line 98 of Form PE428) if you meet the rules for the federal volunteer firefighter or search and rescue amounts (lines 31220 and 31240).
PEI child benefit (July 2026 to June 2027): $34.16 a month per child under 18 if adjusted family net income is under $45,000, or $24.16 if it is between $45,000 and $80,000. It is paid with the Canada child benefit.
PEI sales tax credit: up to $310 a year for an individual, or $365 for couples and single parents. It is paid quarterly with the federal Canada Groceries and Essentials Benefit.

Filing a PEI return and setting up payroll

You pay PEI tax if you lived in Prince Edward Island on December 31. Form PE428 goes with your T1, due April 30.

At work, fill out the TD1PE 2026 as well as the federal TD1. If you have two jobs, claim the basic amount with only one employer. Otherwise too little tax is withheld and you will owe tax in the spring.

PEI vs Nova Scotia and New Brunswick: salary after tax

Prince Edward Island's $15,000 basic personal amount compares with $11,932 in Nova Scotia and $13,664 in New Brunswick, but the brackets and credit rates differ too. At $60,000, here is how the three Maritime provinces compare in 2026:

On $60,000 salary (2026)	Provincial/territorial tax	All tax + CPP + EI	Take-home	Marginal rate
Prince Edward Island	$4,875	$14,553	$45,447	34.0%
Nova Scotia	$5,596	$15,274	$44,726	35.4%
New Brunswick	$4,274	$13,952	$46,048	34.5%

Frequently asked questions

Do I need to apply for the PEI sales tax credit or child benefit?

No separate application is needed. The CRA works both out from your tax return (and your spouse’s, if you have one), so filing on time each spring is what keeps payments coming. The sales tax credit is paid with the federal quarterly payments and the PEI child benefit with the Canada child benefit.

Do PEI students working summers get the tax back?

Often, yes. Payroll assumes you will earn the same amount every pay period all year. If you only work in summer, your annual income is lower than that, and the federal and PEI basic personal amounts (PEI's is $15,000) can cancel most of the tax. Filing a return gets the over-withheld tax refunded.

Which fees count for the PEI children’s wellness credit?

Registration fees for artistic, cultural, recreational, developmental or physical activities, up to $1,000 per child under 18 at the start of the year the fees were paid. Claim it on line 58365 of Form PE428.

Sources

Figures are taken from official government publications and were last reviewed on 2026-10-03.