Tax changes announced in the 2020-21 budget
On June 17, 2020, the Government of Prince Edward Island released the 2020-21 provincial budget. Within that, there are four tax changes announced that will come into effective January 1, 2021.
On the personal income tax side, the following items were announced:
· The base amount for the basic personal tax credit will be raised from $10,000 to $10,500
· The threshold where the reduction of the low-income tax credit starts will be raised from $18,000 to $19,000
· A new $500 base amount of non-refundable Children’s Wellness tax credit will be introduced.
As for corporate income tax measures, the small business tax rate is reduced from 3% to 2%.
Full details on the budget and more information is available on the Government of Prince Edward Island website here.