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2021 PEI Personal Tax Brackets and Rates – Marginal and Average

This page if for PEI residents, but for other Canadians, see reference below.  To view the 2021 tax brackets and related MARGINAL tax rates for Prince Edward Island (combined federal and provincial rates), open the PDF file below.  (Also see below for AVERAGE  rates).  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 for MARGINAL tax rates: 2021 PEI Combined Marginal Tax Rates  See next item for average rates.

To view AVERAGE tax rates for various levels of taxable income, click here: 2021 PEI AVERAGE Tax Rates

For Canadian residents other than Islanders, you can find your own marginal and average tax rates by looking at this E&Y Personal Tax Calculator web site.  For the marginal rates, see the Canadian personal tax rates heading and select your province or territory.  For the average rates, select the Personal tax calculator for the current year and enter your taxable income.  Then look for the column for your average tax rate.  There will be a column for your marginal tax rate also, but the previous reference will provide more detail on the effect of tax brackets with respect to marginal rates.

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