On February 29, 2024, Minister of Finance and Chair of Treasury Board Jill Burridge presented Prince Edward Island’s 2024–25 budget. Consistent with last year’s budget, significant investments are planned to improve the province’s healthcare and education systems, including several measures to train, recruit, and hire more professionals. Forecasting a deficit of $85 million, down slightly from $97.6 million last year, the budget also proposes initiatives to address the rising cost of living and housing affordability, promote safer communities, and support various provincial industries.
This year’s budget contains a few noteworthy tax changes, as summarized below.
HST Rebate for New Residential Rental Properties
The budget reaffirms the province’s commitment to its previously announced rebate for the provincial component of the harmonised sales tax (HST) on qualifying rental housing projects, to a maximum of $35,000 per unit, with only a partial rebate available for projects completed after 2028 and before the end of 2035.
Following significant changes to its personal income tax system in 2024, the province has announced that it will further increase the basic personal amount to $14,250, raise each of its tax bracket thresholds, and lower the tax rate for the first four brackets for 2025.
The province announced that it will continue to offer property tax rebates through its Residential Unit Development Incentive program to help encourage the construction of new residential rental units.
For information on new and extended government funding initiatives included in the 2024 Prince Edward Island budget, please navigate to our Mentor Works website here.
Further information on Prince Edward Island’s 2024 budget may be found on the province's website.
To read key updates from all of Canada’s 2024 provincial budgets, please visit our Key Changes | 2024 Canadian Federal and Provincial Budgets page.
If you have questions about any of the tax changes proposed in this year’s Canadian budgets, please do not hesitate to contact the Ryan TaxDirect® line at 1.800.667.1600 or taxdirect@ryan.com.