Updated for July 1, 2026 · CRA T4127, 123rd edition
Prince Edward Island payroll calculator 2026
Federal and provincial income tax, CPP and EI for any paycheque in Prince Edward Island. Results update as you type.
Take-home on $60k
$1,747.94
every two weeks
Basic personal amount
$15,000
Provincial, 2026
Provincial rates
9.5–20%
6 brackets
Top marginal rate
53.0%
federal + provincial, highest incomes
Payroll in Prince Edward Island: what's different
Prince Edward Island added a new top bracket for 2026 in the middle of the year.
- New top bracket. Income above $200,000 is taxed at 20% for 2026. Because it started late, payroll from July 1 uses a prorated 21%.
- Six brackets in total, starting at 9.5%. The basic personal amount is $15,000, and PEI amounts are not indexed to inflation.
Everything else is national: federal tax, CPP and EI work the same in every province outside Quebec.
| Taxable income | Rate |
|---|---|
| Up to $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% |
Full-year 2026 rates. Payroll from July 1 uses a prorated 21% instead of 20% to make up for the first half of the year.
Example paycheques in Prince Edward Island
| Salary | Gross | Federal | Provincial | Net pay |
|---|---|---|---|---|
| $40,000 | $1,538.46 | $103.51 | $89.74 | $1,236.60 |
| $50,000 | $1,923.08 | $153.28 | $138.63 | $1,493.41 |
| $60,000 | $2,307.69 | $205.32 | $187.51 | $1,747.94 |
| $75,000 | $2,884.62 | $317.73 | $271.47 | $2,084.77 |
| $100,000 | $3,846.15 | $512.88 | $429.49 | $2,620.25 |
| $125,000 | $4,807.69 | $722.30 | $594.15 | $3,134.82 |
First paycheque of the year, basic personal amounts only, no other deductions.
| Taxable income | Rate |
|---|---|
| Up to $58,523 | 14% |
| $58,523 – $117,045 | 20.5% |
| $117,045 – $181,440 | 26% |
| $181,440 – $258,482 | 29% |
| Over $258,482 | 33% |
The lowest federal rate is 14% for 2026 (it was 15% until mid-2025).
| Rate | Earnings | Max (employee) | |
|---|---|---|---|
| CPP | 5.95% | $3,500 – $74,600 | $4,230.45 |
| CPP2 | 4% | $74,600 – $85,000 | $416.00 |
| EI | 1.63% | up to $68,900 | $1,123.07 |
Employers match CPP and CPP2 dollar for dollar and pay 1.4 × the employee's EI premium (up to $1,572.30).
Questions
How much is taken off a $60,000 paycheque in Prince Edward Island?
On a $60,000 salary paid biweekly, each $2,307.69 paycheque has $205.32 federal tax, $187.51 provincial tax, $129.30 CPP and $37.62 EI withheld, leaving $1,747.94 take-home pay (basic TD1 claims, first paycheque of the year).
Why is there a 21% rate on PEI paycheques?
PEI added a 20% bracket for income above $200,000 for 2026. Since employers did not apply it from January to June, payroll from July 1 uses a prorated 21% so that the full-year tax works out at 20%. It only affects paycheques that annualize to more than $200,000.
What are the CPP and EI rates in Prince Edward Island for 2026?
Prince Edward Island uses the national CPP and EI rates. For 2026, employees pay 5.95% CPP on earnings between $3,500 and $74,600 (maximum $4,230.45), 4% CPP2 on earnings between $74,600 and $85,000 (maximum $416.00) and 1.63% EI on insurable earnings up to $68,900 (maximum $1,123.07). Outside Quebec.
Why does my paycheque get bigger near the end of the year?
Because CPP and EI have yearly maximums. On a $90,000 salary paid biweekly, EI reaches its maximum on pay 20 and CPP on pay 22 of 26. After that only CPP2 (4%) is withheld, so the net paycheque goes from $2,406.07 to $2,648.09 until January.
Is this Prince Edward Island calculator accurate?
We implement the CRA's own payroll formulas (T4127, 123rd edition) and test them against the CRA's Payroll Deductions Online Calculator (PDOC): 214 of 214 test paycheques across 13 provinces and territories, three pay frequencies and five salaries match to the cent. For Quebec we use Revenu Québec's formulas (TP-1015.F-V) and also check Quebec tax, QPP and QPIP against its WebRAS calculator. The PDOC and WebRAS are still the official tools.