Tax changes mean more money for Islanders
A number of tax changes will be coming into effect in the New Year that will give Islanders more disposable income.
The basic personal income tax amount will be raised to $10,000 from $9,160, the small business tax rate will drop by another 0.5 per cent to 3 per cent, and the low income threshold will move from $17,000 to $18,000 effective January 1, 2020.
“These tax changes are possible because our economy is strong thanks to the hard working people of our province. We are so pleased that this tax relief will put more money back into the hands of Islanders, help local businesses grow and assist those in low income households who need it most.”
- Minister of Finance Darlene Compton.
As a result of raising the basic personal amount, and the low-income tax reduction threshold, there will be an estimated 1,700 Islanders who will no longer pay PEI income tax.
The reduction in the small business tax rate will benefit approximately 2,600 small businesses, throughout Prince Edward Island. As a result of these changes, there is an estimated $7.6 million in tax savings to hardworking Islanders.