Business Taxation in PEI
This is an overview of taxes charged to businesses in Prince Edward Island. For detailed information about a specific taxation category, find the heading below or go to the general section called Tax Administration and Property Records.
Beverage Containers Fees are charged to anyone who purchases a non-dairy beverage in a recyclable or refillable container. This fee is paid as a deposit at the time of purchase and is refunded when the empty container is returned undamaged to a licensed beverage container depot. Deposit rates vary according to the type of beverage and size of container and are payable under the Beverage Containers Act and Regulations. For information about beverage container fees and to find beverage distributor registration and remittance forms, go to Beverage Container Fee.
Emergency 911 Cost Recovery Fee: Telecommunications carriers must register with the province and are responsible for collecting a fee from local subscribers each month to cover the cost of the 911 emergency services. For information and forms related to the collection, filing and remittance of this fee, go to Emergency 911 Recovery Fee.
Environmental Tax is charged on new tires purchased at a retail outlet in the province and also on tires attached to a new or used motor vehicle brought to PEI after being purchased outside the province. Tires previously sold are not subject to this tax. For more information about environmental tax rates, remittance, and exemptions and to access related forms, go to Environment Tax.
Financial Corporations permanently established in the province such as a bank, loan or trust company are required to file monthly and annual returns on capital. For more information and to access forms go to Financial Corporation Capital Tax.
Gasoline Tax is charged on the purchase of all gasoline and diesel oil used to propel motor vehicles as well as aviation fuel. This tax is included in the pump price of fuel paid by consumers. For information related to gasoline tax legislation, gas tax rates, and to access forms related to marked gasoline or marked diesel oil permits or fuel tax, go to Gasoline Tax.
Harmonized Sales Tax (HST) in Prince Edward Island replaces the previous combination of the Provincial Sales Tax (PST) and the Goods and Services Tax (GST). It is administered by the Canada Revenue Agency. For information about registering an account, collecting, filing and remitting HST, go to Government of Canada.
Property Taxes are calculated and collected annually based on the assessed value of the property. Property tax bills are issued to PEI property owners each year in May. For information about property assessment and property tax, to access forms related to property assessment and property tax or to learn about property tax credit programs, go to Property Assessment and Property Tax.
Real Property Transfer Tax: If you purchase a property you must pay a tax on the greater of either the purchase price or the assessed value of the property. For information about property transfer tax rates and exemptions and to access the standard forms used to administer the transfer of real property, go to Real Property Transfer Tax.
Retail Sales Tax: This tax is applied to designated property such as a vehicle, boat or aircraft that is transferred privately from a seller who is not HST registered. You pay this tax when you register and license your property unless it is eligible for the retail tax exemption. For information about exemptions, tax rates and related forms, go to Retail Sales Tax.
Tobacco Tax: Consumers pay a tax with the purchase of any tobacco product. The tax is included in the price of cigarettes, cigars, tobacco sticks and fine-cut tobacco. Tobacco manufacturers, wholesalers and retailers must be licensed to operate in the province. For information about licensing, tax rates and related forms, go to Tobacco Tax.