Tax · Prince Edward Island
PEI income tax.
Estimate your 2026 Prince Edward Island and federal income tax, net income, average rate and marginal rate.
A Prince Edward Island income tax calculator for the 2026 tax year. Enter your income and it returns federal tax, PEI tax, net income, and your average and marginal rate.
PEI has six brackets, from 9.5% on the first $33,928 of taxable income up to a new 20% rate above $200,000. The basic personal amount is $15,000. PEI no longer charges a provincial surtax.
Inputs
Your PEI tax
Fill the form and press Calculate.
PEI tax brackets, 2026
PEI has six provincial brackets. On 14 April 2026 the province added a sixth bracket: taxable income above $200,000 is taxed at 20% for 2026 and later years. CRA’s July edition lists 21% for that bracket only because employers had already run six months of payroll at the old rates; the full-year rate is 20%, and this calculator uses it.
| Taxable income | Rate |
|---|---|
| $0 – $33,928 | 9.5% |
| $33,928 – $65,820 | 13.47% |
| $65,820 – $106,890 | 16.6% |
| $106,890 – $142,520 | 17.62% |
| $142,520 – $200,000 | 19% |
| Over $200,000 | 20% |
Your combined marginal rate is the federal rate plus the PEI rate for the bracket you are in. At $85,000 that is 20.5% federal + 16.6% PEI = 37.1%.
The basic personal amount and surtax
PEI’s basic personal amount is $15,000, worth a credit of $15,000 × 9.5% = $1,425.00. Unlike the federal amount, it is not reduced at higher incomes. CRA’s T4127 lists no PEI surtax, so none is applied.
Worked example: $85,000 of income
With no RRSP or other deductions, taxable income is $85,000.
- PEI: $33,928 × 9.5% = $3,223.16, plus $31,892 × 13.47% = $4,295.85, plus $19,180 × 16.6% = $3,183.88, gives $10,702.89. Less the basic personal credit of $1,425.00 = $9,277.89.
- Federal: $58,523 × 14% = $8,193.22, plus $26,477 × 20.5% = $5,427.79, gives $13,621.01. Less the federal basic personal credit of $16,452 × 14% = $2,303.28 = $11,317.73.
- Total tax $20,595.62, net income $64,404.38, average rate 24.2%, marginal rate 37.1%.
Average rate is total tax divided by income; marginal rate is the tax on your next dollar. They differ because lower brackets and the basic personal amount pull the average below the marginal rate.
Federal tax is the same everywhere
Only the provincial half of the bill changes with your address. The 2026 federal brackets below apply identically in every province and territory, and the federal basic personal amount is $16,452, clawed back on a straight line to $14,829 between $181,440 and $258,482 of net income.
| Taxable income | Rate |
|---|---|
| $0 – $58,523 | 14% |
| $58,523 – $117,045 | 20.5% |
| $117,045 – $181,440 | 26% |
| $181,440 – $258,482 | 29% |
| Over $258,482 | 33% |
Sources
Every rate and threshold on this page comes from the publications linked below. As of 1 October 2026 (tax year 2026).
- CRA T4127, 123rd edition (effective 1 July 2026) — Table 8.1 federal and PEI brackets and constants, PEI basic personal amount of $15,000, and the PEI note on the new bracket above $200,000 (20% for 2026 and later; the 21% shown is a prorated payroll rate). No PEI surtax is listed.
- CRA — Federal income tax rates and brackets
Frequently asked questions
What are the PEI income tax rates for 2026?
9.5% 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.
What is the PEI basic personal amount for 2026?
$15,000. The credit is worth 9.5% of that, or $1,425.
Does PEI have a surtax?
CRA’s July 2026 T4127 lists no PEI surtax, so this calculator applies none.
Does this include CPP, EI or other credits?
No. It estimates income tax only, using the basic personal amounts. CPP and EI contributions, other non-refundable credits and PEI credits are not included, so a filed return or a payroll deduction will differ.
What is the difference between average and marginal rate?
The average rate is your total tax divided by your income. The marginal rate is the combined federal and PEI rate on your next dollar of taxable income.
Disclaimer
Estimate only — not tax advice. Figures use 2026 federal and PEI brackets and the basic personal amounts, and exclude every other credit and deduction, including the credits for CPP and EI. Your filed return will differ. Confirm anything that matters with the CRA or a professional adviser.