Prince Edward Island Tax Rates
Prince Edward Island
2025 Tax RatesPersonal Income Tax — Combined Federal + Provincial
| Income Range | Other Income | Capital Gains | Eligible Dividends | Non-Elig. Dividends |
|---|---|---|---|---|
| Up to $33,328 | 24% | 12% | -2.1% | 15.72% |
| $33,328 – $57,375 | 27.97% | 13.99% | 3.38% | 20.29% |
| $57,375 – $64,656 | 33.97% | 16.99% | 11.66% | 27.19% |
| $64,656 – $105,000 | 37.1% | 18.55% | 15.98% | 30.79% |
| $105,000 – $114,750 | 38.12% | 19.06% | 17.39% | 31.96% |
| $114,750 – $140,000 | 43.62% | 21.81% | 24.98% | 38.28% |
| $140,000 – $177,882 | 45% | 22.5% | 26.88% | 39.87% |
| $177,882 – $253,414 | 48.31% | 24.16% | 31.45% | 43.68% |
| Over $253,414 | 52% | 26% | 36.54% | 47.92% |
PEI general corporate rate reduced from 16% to 15% effective July 1, 2025; small business threshold increased to $600,000.
Corporate Income Tax
Integrated Rates — Corporate + Personal
Integration analysis shows the total tax cost when income flows through a corporation and is then distributed to a top-bracket individual shareholder, compared with earning the same income directly as salary.
| Route | Corp Rate | Top Personal Rate | Combined Integrated Rate | vs. Salary |
|---|---|---|---|---|
| Salary / DirectBaseline | — | 52% | 52% | — |
| Corp (General) → Eligible DividendPublic company or CCPC above limit | 30% | 36.54% | 55.58% | +3.58% |
| Corp (CCPC/SB) → Non-Eligible DividendCCPC within small-business limit | 10% | 47.92% | 53.13% | +1.13% |
All rates are % of actual amount received: dividend rates apply to the actual dividend (not the grossed-up taxable amount) and capital gains rates apply to the total gain (not the 50% taxable inclusion). A negative eligible dividend rate means the dividend tax credit exceeds the gross-up, resulting in a net tax refund on that income. Corporate rates shown are combined federal and Prince Edward Island provincial rates and may differ from federal-only figures. The integration analysis compares routes for a top-bracket individual shareholder and is an approximation only; actual results depend on individual circumstances.