New tax rules for Prince Edward Islanders
The tax deductions are bigger, the housing payment is less.
The government of Canada's smallest province has announced tax policy changes for 2024. Authorities promise that the updated provincial income and property taxes will save residents of Prince Edward Island CA$ 14 million this fiscal year and CA$ 20 million in the calendar year. So, what's going to change?
- There is an increase in the so-called "basic personal amount," which is a non-refundable tax deduction that all individuals who are tax residents of the province can claim.
- This increase will affect the spousal amounts (per family) and tax credits for low-income and aged people.
- The Children's Wellness Tax Credit will double from CA$ 500 to CA$ 1,000.
Provincial Finance Minister Jill Burridge attributed such reforms to the government's desire to support the working, yet low-income segment of the population:
"Money is tight for many people and we’re always looking at ways to make changes so that Islanders can keep more in their pockets. These changes are commitments we made in the 2023 operating budget to support hardworking low and middle-income families and seniors."
In addition, Prince Edward Island officials have developed a new system for assessing provincial property taxes. Officials promise it will prevent a dramatic increase in provincial taxes on owner-occupied properties. The change will save Prince Edward Islanders CA$ 9 million a year.
As a result of all these changes, the province's 4-bracket tax system (3 groups of taxes plus income tax) is being replaced by a new 5-bracket system.
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