Backgrounder – Inflation Support through Increase to PEI Sales Tax Credit
On October 28, 2022, the Government of Prince Edward Island announced a temporary increase to the PEI Sales Tax Credit payable in January 2023 to help Islanders facing financial pressures caused by rising inflation and hurricane Fiona.
For the January 2023 payment:
-
a single individual with income of up to $100,000 will receive an additional $500. Single individuals with incomes between $100,000 and approximately $125,000 will receive a prorated amount.
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couples and single parents with combined income of up to $100,000 will receive a total increase of $1,000 ($500 for each spouse or $500 for a single parent and $500 for the first dependent child). Couples and single parents with incomes between $100,000 and $145,000 will receive a prorated amount.
The Canada Revenue Agency (CRA) administers the PEI Sales Tax Credit on behalf of the Government of Prince Edward Island.
No application for the benefits is required. However, eligible individuals must ensure their annual income tax return is filed in order to receive the benefits. Eligibility will be based on family net income from the previous year.
Questions and Answers
How do I apply for this money?
No application is required. However, eligible individuals must ensure their annual income tax return is filed in order to receive the benefits.
Why am I receiving this money?
The Government of Prince Edward Island is providing additional help to Islanders deal with the financial pressure from rising inflation and hurricane Fiona.
When will I receive it?
CRA will process the benefit on January 5th.
How will it be received?
By direct deposit if you are set up to receive other benefits or tax refunds from CRA by this method. Otherwise, you will receive a cheque in the mail. If you would like to receive benefits by direct deposit, please visit CRA My Account.
Will I have to declare and pay tax on this money?
No, the PEI Sales Tax Credit is a tax-free amount.
Who is sending the money?
The Canada Revenue Agency is administering the benefit on behalf of the Government of Prince Edward Island.
Who do I contact if I have questions about how much benefit I received?
The Canada Revenue Agency is calculating the benefit, based on the criteria provided by the Government of PEI. If you have questions about the amount of your benefit, you can call them directly using the toll-free number below.
Benefits toll-free numbers:
1-800-387-1193 (English)
1-800-387-1194 (French)
Where can I find more information?
- Please visit this page to learn more about the PEI Sales Tax Credit.
- Use your CRA My Account to view your benefit notice online. You can sign up for a CRA My Account at this link.
Examples of Inflation Support payments
Bob - single, income of $45,000
Bob is single and has an income of $45,000. He receives PEI sales tax credits of $41.25 per quarter or $165 annually. On his January credit, Bob will receive an additional one-time payment of $500 for a combined January payment of $541.25.
| Benefit Amounts | January 2023 |
|---|---|
| Sales Tax Credit |
$41.25 |
| Additional Payment | $500.00 |
| Total | $541.25 |
Jane - single, income of $50,000
Jane is single and has an income of $50,000. Jane will receive a $500 payment in addition to her quarterly payment of the Sales Tax Credit of $41.25 for a total payment of $541.25.
| Benefit Amounts | January 2023 |
|---|---|
| Sales Tax Credit | $41.25 |
| Additional Payment | $500.00 |
| Total | $541.25 |
Diane - single parent, income of $40,000
Diane is a single parent with an income of $40,000. She will receive PEI Sales tax credits of $55 per quarter or $220 annually. On her January credit, Diane and her child will each receive an additional one-time payment of $500 ($1,000 combined) for a total January amount of $1,055.
| Benefit Amounts | January 2023 |
|---|---|
| Sales Tax Credit | $55.00 |
| Additional Payment | $1000.00 |
| Total | $1055.00 |
Tanner - full-time university student, part-time income of $8,000
Tanner is a full-time university student with part-time income of $8,000. He will receive PEI Sales tax credits of $27.50 per quarter or $110 annually. On his January credit, he will receive an additional one-time payment of $500 for a combined total of $527.50.
| Benefit Amounts | January 2023 |
|---|---|
| Sales Tax Credit | $27.50 |
| Additional Payment | $500.00 |
| Total | $527.50 |
John and Sara - couple, combined retirement income of $49,000
John and Sarah are a retired couple with a combined income of $49,000. They will receive PEI Sales tax credits of $55 per quarter or $220 annually. On their January credit, John and Sarah will receive an additional payment of $1,000 ($500 each) for a combined amount of $1,055.
| Benefit Amounts | January 2023 |
|---|---|
| Sales Tax Credit | $55.00 |
| Additional Payment | $1000.00 |
| Total | $1055.00 |
Luka and Marie - couple with combined income of $63,000
Luka and Marie are a couple with a combined income of $63,000 and will each qualify for a $500 payment for a combined $1,000. This is in addition to now qualifying for a PEI sales tax credit of $55 for a total payment of $1,055 in January.
| Benefit Amounts | January 2023 |
|---|---|
| Sales Tax Credit | $55.00 |
| Additional Payment | $1000.00 |
| Total | $1055.00 |
Jean and Omar - couple, combined income of $100,000
Jean and Omar are a couple with a combined income of $100,000 and will each qualify for a $500 payment for a combined $1,000 payment. This is in addition to now qualifying for a PEI sales tax credit of $55 for a total payment of $1,055 in January.
| Benefit Amounts | January 2023 |
|---|---|
| Sales Tax Credit | $55.00 |
| Additional Payment | $1000.00 |
| Total | $1055.00 |
Mike and Karen - couple, combined income of $125,000
Mike and Karen are a couple with a combined income of $125,000. They will receive a prorated payment of $492.50 in January 2023.
| Benefit Amounts | January 2023 |
|---|---|
| Sales Tax Credit | |
| Additional Payment | $492.50 |
| Total | $492.50 |