2026 tax year · CRA rates, updated July 2026
Prince Edward Island tax brackets 2026
Every provincial bracket for the 2026 tax year, the federal brackets on top of them and the combined rate you pay on each extra dollar in Prince Edward Island.
Provincial rates
9.5%–20%
6 brackets
Basic personal amount
$15,000
provincial, 2026
Marginal rate at $100k
37.1%
federal + provincial
Top combined rate
53%
over $258,482
| Taxable income | Rate | Tax at the top |
|---|---|---|
| Up to $33,928 | 9.5% | $3,223 |
| $33,928 – $65,820 | 13.47% | $7,519 |
| $65,820 – $106,890 | 16.6% | $14,337 |
| $106,890 – $142,520 | 17.62% | $20,615 |
| $142,520 – $200,000 | 19% | $31,536 |
| Over $200,000 | 20% | — |
Full-year 2026 rates, used on your tax return. Payroll from July 1 uses a temporary 21% instead, to catch up on the first half of the year.
| Taxable income | Rate | Tax at the top |
|---|---|---|
| Up to $58,523 | 14% | $8,193 |
| $58,523 – $117,045 | 20.5% | $20,190 |
| $117,045 – $181,440 | 26% | $36,933 |
| $181,440 – $258,482 | 29% | $59,275 |
| Over $258,482 | 33% | — |
The same in every province. The lowest rate is 14% for 2026. Quebec residents then get a 16.5% abatement on basic federal tax.
| Taxable income | Combined |
|---|---|
| Up to $33,928 | 23.5% |
| $33,928 – $58,523 | 27.47% |
| $58,523 – $65,820 | 33.97% |
| $65,820 – $106,890 | 37.1% |
| $106,890 – $117,045 | 38.12% |
| $117,045 – $142,520 | 43.62% |
| $142,520 – $181,440 | 45% |
| $181,440 – $200,000 | 48% |
| $200,000 – $258,482 | 49% |
| Over $258,482 | 53% |
The rate on the next dollar of ordinary income such as salary. Basic personal amounts make the first dollars tax-free, and the federal amount shrinks between $181,440 and $258,482, which adds a little to the rate there.
What's different in Prince Edward Island
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.
Example: tax on $75,000 in Prince Edward Island
On a $75,000 salary in Prince Edward Island, taxable income is $74,273 federally, once the enhanced part of CPP is deducted. Each slice is taxed at its own rate:
Prince Edward Island
- 9.5% on $33,928 = $3,223.16
- 13.47% on $31,892 = $4,295.85
- 16.6% on $8,453 = $1,403.20
$8,922.21 before credits → $7,056.28 after credits.
Federal
- 14% on $58,523 = $8,193.22
- 20.5% on $15,750 = $3,228.75
$11,421.97 before credits → $8,258.60 after credits.
Total income tax: $15,314.88, an average rate of 20.4%, even though the top slice is taxed at 35.6% combined. Moving into a higher bracket never makes you lose money: only the dollars above the threshold pay the higher rate.
Questions
What are the Prince Edward Island tax brackets for 2026?
9.5% on the first $33,928, 13.47% from $33,928 to $65,820, 16.6% from $65,820 to $106,890, 17.62% from $106,890 to $142,520, 19% from $142,520 to $200,000, 20% over $200,000 of taxable income. Federal tax is added on top.
What is the marginal tax rate on $100,000 in Prince Edward Island?
37.1% combined: 20.5% federal and 16.6% provincial. That is the rate on the next dollar of salary; the average rate on $100,000 is 24.4%.
What is the top tax rate in Prince Edward Island?
53% on taxable income over $258,482, combining the top federal rate of 33% and the top provincial rate of 20%.
What is the basic personal amount in Prince Edward Island for 2026?
$15,000 for provincial tax, and $16,452 for federal tax. With CPP, EI and the other basic credits, an employee in Prince Edward Island pays no income tax up to about $16,000 of salary and no provincial tax up to about $16,000.