2024 Prince Edward Island Income Tax Calculator
Plug in a few numbers and we’ll give you visibility into your tax bracket, marginal tax rate, average tax rate, and payroll tax deductions, along with an estimate of your tax refunds and taxes owed in 2024.
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Prince Edward Island Provincial and Federal tax brackets
Your taxable income places you in the following tax brackets.
| Canadian federal tax bracket | Canadian federal tax rate |
|---|---|
| $55,867 or less | 15.00% |
| $55,867 - $111,733 | 20.50% |
| $111,733 - $173,205 | 26.00% |
| $173,205 - $246,752 | 29.00% |
| More than $246,752 | 33.00% |
| Prince Edward Island tax bracket | Prince Edward Island tax rate |
|---|---|
| first $32,656 | 9.65% |
| over $32,656 up to $64,313 | 13.63% |
| over $64,313 up to $105,000 | 16.65% |
| over $105,000 up to $140,000 | 18% |
| over $140,000 | 18.75% |
You can calculate your net income in Prince Edward Island by following the step-by-step process listed down below.
Determine taxable income by deducting any pre-tax contributions to benefits Your taxable income is your gross income less tax deductions allowed. Gross income includes income from employment, commissions, tips, investments, and other income earned during the tax year. Check if you are eligible for any federal or provincial tax deductions in Prince Edward Island to reduce your taxable income and the overall tax liability.
Withhold all applicable taxes (federal and provincial) The income taxes are withheld from your salary if you are employed. If you are self-employed, you’ll have to report your income on form T2125. Income that you receive during the year such as dividend income, capital gains, and casual income (scholarships, or any other one-time income), should be reported on the tax returns.
Deduct any post-tax contributions to benefits Post-tax deductions are withheld from your employment income after the withholding of taxes. Some common post-tax deductions are garnishment of wages, union dues and insurance payments. If you are contributing to insurance plans or have agreed to pay job-related expenses (meals, travel expenses, or memberships), your employer would be withholding post-tax deductions from your salary.
Garnish wages, if necessary A portion of your salary may be withheld by your employer and remitted to the government by a court order. This is known as wage garnishment. Garnished wages are a part of your taxable income. If your wages are garnished, you should report them on your tax returns.
The result is net income After paying taxes, you arrive your net income.
Explore other provincial or territorial tax calculators
FAQs
In PEI, Tax is due on April 30 for employed taxpayers and June 15 for self-employed taxpayers.
The tax rate in Prince Edward Island increases as your taxable income increases. The tax rate on the first $32,656 of taxable income is 9.65%. Plus 13.63% on the next $31,657. Plus 16.65% on the next $40,687. Plus 18% on the next $35,000. Plus 18.75 on the amount over $140,000.
To calculate taxes in Prince Edward Island, you can use a PEI tax calculator or hire a tax expert to calculate and file taxes for you.
The tax deducted from your paycheck in Prince Edward Island depends on your taxable income and the PEI tax rate that applies to your income. The tax rate is 9.8% for the first $31,984 of taxable income. Plus 13.8% on the next $31,985. Plus 16.7% on the amount over $63,969. To calculate taxes in Prince Edward Island (PEI) you can use a PEI tax calculator.
The carbon pricing in Prince Edward Island has two parts. The provincial government administers a carbon price for the consumers who buy fuels that add CO2 into the atmosphere. The federal government levies the large emitters through an output-based pricing system.
Ideally, you should keep tax records for 6 years.
Tax refunds can take 2 weeks if you file taxes online. But it may take up to 8 weeks or even longer in some cases if you file tax returns by mail.
To calculate your total tax liability and annual net income, you can use a PEI tax calculator.
You can mail your Prince Edward Island (PEI) tax returns to Canada Revenue Agency, Tax Centre, 105 - 275 Pope Road, Summerside PE C1N 6E8.
The capital gains tax rate increases with your PEI tax brackets. The capital gains tax (federal and provincial combined) for the first $31,984 of taxable income is 12.40%. For income over $31,984 up to $53,359, the capital gains tax rate is 14.40%. For income over $53,359 up to $63,969, the capital gains tax rate is 17.15%. For income over $63,969 up to $100,664, the capital gains tax rate is 18.60%. For income over $100,664 up to $106,717, capital gains tax rate is 19.44%. For income over $106,717 up to $165,430, the capital gains tax rate is 22.19%. For income over $165,430 up to $235,675, the capital gains tax rate is 23.85%. For income over $235,675, the capital gains tax rate is 25.69%.
The withholding tax on the first $31,984 of taxable income is 9.8%. Plus 13.8% on the next $31,985. Plus 16.7% on the amount over $63,969.
The marginal tax rate (federal and provincial combined) is 24.80% for the first $31,984 of taxable income. For income over $31,984 up to $53,359, the marginal tax rate is 28.80%. For income over $50,197 up to $63,969, the marginal tax rate is 34.30%. For income over $63,969 up to $100,664, the marginal tax rate is 37.20%. For income over $100,664 up to $106,717, marginal tax rate is 38.87%. For income over $106,717 up to $165,430, the marginal tax rate is 44.37%. For income over $165,430 up to $235,675, the marginal tax rate is 47.69%. For income over $235,675, the marginal tax rate is 51.37%.
There are 3 PEI tax brackets. The tax rate for first $31,984 of taxable income is 9.8%. Plus 13.8% on the next $31,985. Plus 16.7% on the amount over $63,969. You can use a PEI income tax estimator to calculate your income tax.
If the house you are selling is your principal residence, you might be eligible for the principal residence tax exemption, however, if the house is not your principal residence, you can report it on schedule 3.
Tax credits available to the residents of Prince Edward Islands (PEI) are PEI young child tax credit, PEI refundable sales tax credit, and Equity tax credit PEI.