Property tax in Prince Edward Island

Rates are in dollars per $100 of taxable value assessment: for illustration, a non-commercial home with a $300,000 taxable assessment owned by a resident receiving the $0.70 credit pays $300,000 / 100 x ($1.70 - $0.70) = $3,000 in provincial tax, before municipal tax, fire district and IWMC charges.

Prince Edward Island has no separate school tax. The Province lists the parts of an annual bill as provincial property tax, municipal property tax, fire district charges and IWMC charges, and none of these is a school levy. The Real Property Tax Act once had a section allowing a regional school board supplementary educational program tax (s. 8(5)); it was repealed in 2013.

The provincial portion is the province-wide component. For 2026 the rates are: - $1.70 per $100 of taxable value assessment on non-commercial property; - $1.50 per $100 on commercial property; - less a $0.70 per $100 provincial tax credit on non-commercial property owned by eligible residents (the credit was $0.50 until December 31, 2025).

PEI has one province-wide billing cycle, because the Province collects both provincial and municipal tax. Municipal rates differ from place to place, but the dates are the same: - Early May: Taxation and Property Records sends the Statement of Account - Property Charges. It shows current-year taxes and fees, any arrears, and instalment amounts, dates and payment stubs. The Notice of Property Assessment is on page 3. - Instalments: the Province gives the instalment dates as "May 31, August 31, and November 30 each year". Section 8(1) of the Real Property Tax Act Regulations makes one-third of the total due on each date, and any remainder from dividing the payments is added to the first instalment.

Payment. Owners can pay through online banking (payee "Province of PEI - Property Tax", with the property number without the dash as the account number), at a bank or credit union, at Access PEI locations, by mail, or at the drop box at 95 Rochford Street, Charlottetown. Cheques are payable to the Minister of Finance and Affordability. Interac e-Transfer and credit cards are not accepted. The Department charges $35 for a cheque that is not honoured.

Arrears. "Property tax accounts in arrears will be charged one percent (1%) interest per month calculated on a daily basis." After 15 months or more in arrears the owner receives a Notice of Liability to Tax Sale. A property may be sold at a tax sale if taxes and charges are in arrears for 24 months or more and no acceptable payment arrangements have been made.

The Province states that not receiving a bill "does not relieve a property owner of their responsibility to pay property charges on time."

Provincial tax credit for residents. The Real Property Tax Act (s. 5) gives a tax credit on non-commercial property to resident persons and resident corporations, but not to a person or corporation holding the property in trust for a non-resident. The Province's Provincial Tax Credit Program page states the credit is "$0.50 until December 31, 2025 and $0.70 for January 1, 2026 onward per $100 of taxable valuable assessment." The page lists two situations: a sole owner who resides in PEI for 183 consecutive days or more each taxation year, or co-owners where 50 per cent or more of the owners reside in PEI for 183 consecutive days or more. The regulations (s. 24) treat a corporation as resident if 50% or more of its voting shares are held by residents. Owners not already receiving the credit apply with the Request for Provincial Tax Credit form. With the 2026 rate of $1.70, a property receiving the credit has a net provincial rate of $1.00 per $100.

Owner-occupied assessment cap. The taxable assessment of an owner-occupied home rises each year by the PEI Consumer Price Index for the prior year, to a maximum of 5%, and never exceeds market value. Since January 1, 2025, a home is no longer owner-occupied if any part is rented for periods of less than 30 days. Details are on the PEI assessment page.

Seniors. The Province runs a Seniors Property Tax Deferral Program for the principal residence of eligible seniors.

Other programs. The Province's Property Tax Credit Programs page also lists farm assessment programs and a grants-in-lieu program.