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Dividend tax · Prince Edward Island

Dividend tax in Prince Edward Island

Prince Edward Island's dividend tax credit is 10.50% of grossed-up eligible dividends and 1.3000% of grossed-up non-eligible dividends (2025 worksheet, latest published).

Here's what $1,000 of dividends costs in tax in Prince Edward Island, next to the same $1,000 of interest.
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Short answerWith $100,000 of other income in Prince Edward Island, $1,000 of eligible dividends adds about $160 of 2026 tax (16%), non-eligible dividends about $308 (30.8%) and interest about $371 (37.1%). These are estimates from published brackets and credits.

Prince Edward Island's dividend tax credit rates

CreditEligible dividendsNon-eligible dividends
Gross-up (federal rule)38%15%
Federal credit15.0198%9.0301%
Prince Edward Island credit10.5000%1.3000%

Credits are a percentage of the grossed-up (taxable) amount: $1,000 of eligible dividends becomes $1,380 of taxable income, and the Prince Edward Island credit on it is $144.90. Both credits are non-refundable, so they can reduce your tax to zero but not below.

Estimated 2026 tax on $1,000 of each kind of income

Other taxable incomeEligible dividendsNon-eligible dividendsCapital gainsInterest
$50,000$27$197$137$275
$100,000$160$308$186$371
$200,000$328$448$246$493

At lower incomes the dividend tax credit can exceed the tax on the grossed-up dividend. At higher incomes, half-taxed capital gains usually cost less than eligible dividends.

Prince Edward Island 2026 income tax brackets used

Taxable income up toProvincial rate
$33,9289.50%
$65,82013.47%
$106,89016.60%
$142,52017.62%
$200,00019.00%
and above20.00%

Basic personal amount used: $15,000. The estimate leaves out other credits, health premiums and benefits.

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Estimate for education, not advice. This site does not recommend, rate or rank any security and does not know your full situation. Results depend on your inputs and the simplifications listed under Method. Check tax details with the CRA or IRS, or a qualified professional. Read the disclaimer.

Primary sources

Rules checked October 31, 2026. Tax rules and rates change; confirm current details on the official pages above.