2023 Property Tax Subsidy
The 2023 Property Tax Subsidy Initiative announced by the Province of Prince Edward Island is a continuation of a 2022 initiative that will aim to assist with the increases in cost-of-living expenses caused by global events, by providing a one-time subsidy to owner-occupied residential properties to offset the increase in 2023 provincial residential tax due to high inflation affecting global and local markets.
CPI has been identified as 8.8 per cent for 2022, meaning that all assessments for owner-occupied property would result in a maximum allowable increase of up to 5 per cent. The Province is pleased to be providing an additional one-time subsidy for 2023 assessments to offset the realized increase to property assessments due to sharp increases in CPI.
Do I have to apply for the subsidy?
No, there is not an application process for the subsidy. You will automatically receive the subsidy if you own a residential property that was eligible for the owner-occupied assessment on December 31, 2022, and if ownership for that property has not changed.
How will I know I received the subsidy?
The subsidy payment will appear on the first page of your Statement of Account Property Charges on the line titled “Less payments and credits”.
Frequently Asked Questions:
- Am I eligible for the subsidy?
- A residential property is eligible for the subsidy if it was eligible for the owner-occupied assessment at December 31, 2022 and ownership has not changed
- I purchased my property during 2022; what subsidy am I eligible for?
- For properties whose ownership changed during 2022, a partial subsidy will be applied to cap their provincial taxes payable at the 2022 assessed amount post-purchase.
- My taxes increased more than 5% but I did not receive a subsidy – how come?
- Only owner-occupied residential assessment is covered by the subsidy.
- Increases resulting from new construction or renovations are not eligible for the subsidy.
- Tax increases may also be the result of municipal increases, which are not eligible for the subsidy.
- Why is my payment on account not 5% of my tax bill?
- While the maximum allowable increase on owner-occupied properties for 2023 under the Real Property Assessment Act was 5% some properties may have increased by less than 5% due to market factors, depreciation, etc.
How to pay property tax payable:
Islanders are reminded that property tax assessments for the 2023 tax year will be mailed out on May 5, 2023, and payment installments for 2023 are due on May 31, August 31, and November 30. Please check Property Tax Payments for more information on payment options.
If you do not receive your property tax assessment, please visit the Provincial Taxation Office located on the 1st Floor of the Shaw Building at 95 Rochford Street or call 902-368-4070.
For more information about the 2023 Property Tax Subsidy initiative, contact the Provincial Taxation Office at 902-368-4070.