On May 25, 2023, Minister of Finance and Chair of Treasury Board Jill Burridge delivered Prince Edward Island’s 2023–24 budget. The newly elected government’s first budget includes significant investments in health care and education as well as measures designed to address housing affordability.
Forecasting a deficit of approximately $97.6 million, the budget contains a few noteworthy tax changes.
Personal Income Tax Measures
For personal income tax purposes, the province has announced that it will increase the basic personal amount to $13,500 by 2024. In addition, the income threshold for the low-income tax reduction will be increased by $750 for each of the next two years. Increases to the tax credit for seniors (and related income thresholds) and fitness and activity tax credit are also planned.
Furthermore, the province intends to introduce a five-bracket system for personal income taxes in 2024, with indexing of the brackets to be reviewed annually going forward.
Property Tax Measures
The province announced that it will continue to hold the line on property taxes through the use of offsets for 2023 and introduce measures to reset assessment rates to 2020 levels in an effort to prevent a spike in property taxes next year.
More Information
Further information on Prince Edward Island’s 2023-24 budget may be found on the province’s website at:
https://www.princeedwardisland.ca/en/information/finance/provincial-budget-operating-budget
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.
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- Prince Edward Island