Taxation on PEI

In Prince Edward Island there is:

  • no payroll tax
  • no corporation minimum tax
  • no corporation capital or franchise tax
  • no PST on clothing or footwear
  • no business or occupation tax
  • no PST on licenses
  • no PST on registrations
  • no PST on in-bound 800 number calls
  • no PST on outbound long-distance telephone usage in excess of 250,000 minutes per year

PEI Corporate Income Tax

Small Business* 1%
Manufacturing & Processing 16%
Real Commercial Property Tax 1.5% of assessed value

(Note property values in PEI are below the national average.)

Federal Corporate Income Tax

Small Business* 11%
Other Corporations 18%

* The Small Business rate applies to the income eligible for the federal small business deduction, currently the first $500,000; other conditions apply.

Available Investment tax credits:

  • Scientific Research and Investment Tax Credit
  • Tax Credit on Manufacturing Equipment and Machinery 10%
  • Capital Investment Tax Credit 10%
Customer Focused. Efficient. Flexible.
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