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2018 Personal Tax Brackets and Rates for PEI

To view the 2018 tax brackets and related MARGINAL tax rates for Prince Edward Island (combined federal and provincial rates), open the following PDF file (updated for the minor changes to PEI’s credits announced in November).  Note that there are two pages – one reports the detailed tax rates on “regular’ or “normal” income, such as wages, interest and business income,  for all brackets.  Page two provides approximate rates using approximate tax brackets for normal income, eligible dividends and ineligible dividends.  Taxable capital gains will be 50% of “normal” rates unless a capital gains exemption applies.  These tax rates do not take into account “clawbacks” of various benefits.  For example, low income people receiving the Guaranteed Income Supplement will have a significant reduction of their Supplement when their income goes up; higher income seniors will have a reduction of their Age Amount and their Old Age Security as their income increases above a certain thresholds; parents with minor children will lose Canada Child Benefits when income exceeds a specified threshold; recipients of Employment Insurance may need to repay a portion of their EI above a certain threshold.

Click here: 2018 Combined MARGINAL Tax Brackets and Rates for PEI – Nov 25, 2018 update

To view AVERAGE tax rates for various levels of taxable income, click here: 2018 Combined AVERAGE Tax Rates for PEI.  These rates are based on individuals who only have the Basic Personal Amount as tax credits.

Blair Corkum, CPA, CA, R.F.P., CFP, CFDS, CLU, CHS holds his Chartered Professional Accountant, Chartered Accountant, Registered Financial Planner, Chartered Financial Divorce Specialist as well as several other financial planning related designations. Blair offers hourly based fee-only personal financial planning, holds no investment or insurance licenses, and receives no commissions or referral fees. This publication should not be construed as legal or investment advice. It is neither a definitive analysis of the law nor a substitute for professional advice which you should obtain before acting on information in this article. Information may change as a result of legislation or regulations issued after this article was written.©Blair Corkum