Prince Edward Island Tax Rates for 2026

The top combined federal and Prince Edward Island marginal rate is 52.00% on taxable income over $258,482. Capital gains are taxed at half your marginal rate, up to 26.00%.

Marginal and capital gains rates by income

Prince Edward Island combined marginal and capital gains tax rates by taxable income, 2026
Taxable income	Marginal rate	Capital gains rate
Up to $33,928	23.50%	11.75%
$33,928 to $58,523	27.47%	13.74%
$58,523 to $65,820	33.97%	16.99%
$65,820 to $106,890	37.10%	18.55%
$106,890 to $117,045	38.12%	19.06%
$117,045 to $142,250	43.62%	21.81%
$142,250 to $181,440	45.00%	22.50%
$181,440 to $258,482	48.00%	24.00%
Over $258,482	52.00%	26.00%

Rates apply to the next dollar of taxable income above the basic personal amounts. Sources: CRA 2026 federal and provincial brackets, cross-checked against KPMG's 2026 table. Credits, the alternative minimum tax and income-tested benefits are not included. Estimates only, not tax advice.

Example: a $20,000 capital gain

With $120,000 of other taxable income in Prince Edward Island, half of the gain ($10,000) is added to your income. The extra federal and provincial tax is about $4,362, an effective rate of 21.81% on the gain. A capital loss of the same size in the same year would save about the same amount.

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Frequently asked questions

What is the top marginal tax rate in Prince Edward Island in 2026?

The top combined federal and provincial rate in Prince Edward Island is 52.00%, on taxable income over $258,482.

What is the capital gains tax rate in Prince Edward Island?

Half of a capital gain is taxable, so the rate on a gain is half of your marginal rate: from 11.75% on lower incomes up to 26.00% at the top.

How much tax would I pay on a $20,000 capital gain in Prince Edward Island?

With $120,000 of other taxable income, a $20,000 gain adds about $4,362 of federal and Prince Edward Island tax, an effective rate of 21.81% on the gain.