Tax changes to benefit Islanders
Island residents will save more in 2024 due to changes in provincial income and property taxes this year.
Changes to the current income tax bracket system effective January 1, 2024, will result in total savings of $14 million this fiscal year to Islanders impacted, with savings growing to $20 million for the calendar year.
Other income tax adjustments this calendar year include increases to the basic personal amount, including the spousal amounts, along with increases to the low-income tax reduction and age credit. Also, the Children’s Wellness Tax Credit will double by increasing from $500 to $1,000.
Changes to provincial property taxes have also been introduced that will prevent a sharp rise in provincial taxes payable for owner-occupied properties, saving Islanders $9 million per year.
“Money is tight for many people and we’re always looking at ways to make changes so that Islanders can keep more in their pockets. These changes are commitments we made in the 2023 operating budget to support hardworking low and middle-income families and seniors.”
- Finance Minister Jill Burridge
Adjustments to the current tax brackets mean that the current 4 bracket system, that includes the 3 explicit brackets, plus the surtax that acts like a 4th bracket, has been replaced with a new 5 bracket system.
Department of Finance