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Canada: Tax measures in 2026 budget (Prince Edward Island)

Tax proposals include individual and indirect taxes.

April 15, 2026

Prince Edward Island's (PEI’s) Finance Minister on April 14, 2026, delivered the province’s 2026 budget. Tax proposals included in the budget concern:

  • Individual (personal) tax: The budget introduces a new provincial 20% individual (personal) income tax rate on income over $200,000*, effective January 1, 2027. As a result of this change, Prince Edward Island’s combined top marginal personal income tax rates will increase. The budget also announces that Prince Edward Island will enhance the PEI child benefit, and a new Prince Edward Island essential benefit. The budget does not provide further details about these measures.
  • Indirect tax: The budget increases the insurance premium tax rates charged on gross premiums on contracts of life insurance, accident insurance and sickness insurance to 4.00% (from 3.75%). The budget increases the real property tax rate for nonresidents to $1.70 (from $1.50) for each $100 of taxable value assessment. The budget also introduces a tax credit for nonresident apartment owners of $0.20 for each $100 of taxable value assessment. These measures are effective for the 2026 calendar year.

Read an April 2026 report prepared by the KPMG member firm in Canada

*$=Canadian dollar

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