Free driver's licences and reduced registration fees

Any driver who has a license refunded after January 1, 2019 is not eligible for the free driver`s license with the five-year expiry until the expiry date of the refunded period of time.

The Climate Change Action Plan is focused on helping Islanders reduce carbon emissions while saving money at the same time.

Government is offering incentives to help residents and businesses reduce greenhouse gas emissions while returning all revenue from the carbon levy on gas and diesel directly back to Islanders.

As of January 1, 2019, Islanders will benefit from:

Free driver's licenses

Who is eligible for the free driver's license?

All drivers that renew or exchange a valid driver's license (foreign or domestic) after January 1, 2019 are eligible for a free five-year licence.

What about drivers that renewed their license before January 1, 2019?

Everyone will receive a free licence, but they will receive it at different times, as their licence expires.

Drivers with expiring licenses are eligible for the free driver's license in the year their current driver's license expires.This is a staggered approach and all those drivers will receive their free driver's license when they come in for their next renewal.

  • For example: driver's licenses that expire in 2019 become eligible in 2019, driver licenses that expire in 2020 become eligible in 2020 and driver licenses that expire in 2021 become eligible in 2021.
  • For example: a driver that renewed in November 2018 and their date of birth is in November will receive their free driver`s license in November of 2021 when their license expires.

Are there any exceptions?

The free license does not include a Class 7 Instruction Permit or a Class 9 Farm Tractor Permit. These individuals will receive a free driver's license when they receive their first Class 5 driver's license in the Graduated Driver Licensing Program.

Are duplicate or lost driver's licenses free?

No. There are no changes to any of the other fees associated to driver licensing through the Highway Traffic Act - Fees Regulations. All other fees remain in place such as duplicates, class upgrades, driver testing, etc. 

Reduced registration costs

Electric and plug-in hybrid vehicle registration will be free as of January 1, 2019.

The fee for non-plug-in hybrid vehicle registration will decrease by 50%.

All other motor vehicles, as defined by the Highway Traffic Act Fees Regulations, are eligible for a 20% reduction of their annual registration fee starting January 1, 2019.

Are there any exemptions?

The fee changes do not include trailers or vehicles listed under the Off-Highway Vehicle Act and Regulations.

Will individuals that renewed their registration early receive a refund? 

Yes, for those that renewed a motor vehicle registration in 2018 and the expiry date was in 2019, they will receive a refund at their next renewal time in 2020.

What about motor vehicles coming in from out of province?

All motor vehicles registered in PEI after January 1, 2019 will receive a reduction in the annual registration fee.

Free voluntary identification

Anyone who does not hold a valid driver`s license is eligible for a free voluntary ID. 

This includes:

  • Individuals whose driving privileges have been cancelled administratively by PEI`s Highway Safety Division under Fitness to Driver provisions
  • All individuals that do not hold a valid driver`s license and are renewing an expired ID.
  • All individuals that no longer drive and their driver`s license is expired over 3 years.
  • Suspended or cancelled drivers whose current driver license is expired over 3 years.

Will drivers whose driving privileges are suspended under the Highway Traffic Act after January 1, 2019 receive a free Voluntary ID?

No, but they will receive a free driver's license at the time their driver`s license is re-instated.  All re-instatement fees remain in place.

Are duplicate or lost Voluntary IDs free? 

No, there will be a $20 fee for a duplicate or replacement for a lost Voluntary ID.

Published date: 
January 11, 2019
Transportation, Infrastructure and Energy

General Inquiries

Department of Transportation, Infrastructure and Energy
3rd Floor, Jones Building
11 Kent Street,
P.O. Box 2000,
Charlottetown, PE C1A 7N8

Phone: 902-368-5100
Fax: 902-368-5395

Highway Safety/Access PEI Inquiries:

Road-Related Inquiries:

All other TIE inquiries:

Report Transportation Problems