Provincial Tax Credit Program
Prince Edward Island's Provincial Tax Credit reduces the provincial portion of property tax on non-commercial property owned by Island residents. From January 1, 2026 the credit is $0.70 per $100 of taxable assessment, up from $0.50.
We explain the official rules; we do not decide who qualifies. Eligibility is determined by Government of Prince Edward Island, Taxation and Property Records (Department of Finance and Affordability). Check the official program page before you apply.
What the Provincial Tax Credit Program is
Prince Edward Island collects a provincial real property tax on every property, alongside municipal tax, fire district charges and Island Waste Management charges. The province's Property Taxes and Charges page sets the provincial rate at "$1.50 for each $100 taxable value assessment for commercial property, and $1.70 for non-commercial property."
The Provincial Tax Credit Program reduces that provincial portion for residents. The program page states: "A provincial tax credit may be applied to the provincial portion of property tax on non-commercial property. Currently, the provincial tax credit is $0.50 until December 31, 2025 and $0.70 for January 1, 2026 onward per $100 of taxable valuable assessment."
The eligibility test set out on the program page and in the regulations is residency. Owners who live in PEI for 183 consecutive days or more in the taxation year can receive it on non-commercial property they own.
The legal basis is section 5 of the *Real Property Tax Act* and section 24 of its regulations. The online office consolidation of the Act (current to November 29, 2024) still shows the earlier $0.50 credit and $1.50 non-commercial rate. The 2026 figures on this page come from the province's program pages.
Amounts
As published by Government of Prince Edward Island, Taxation and Property Records (Department of Finance and Affordability)
| Item | Amount or rule | Applies to | Source |
|---|---|---|---|
| Provincial tax credit, non-commercial property, from January 1, 2026 | $0.70 per $100 of taxable assessment | 2026 onward ("for January 1, 2026 onward") | 1, 2 |
| Provincial tax credit, non-commercial property, until December 31, 2025 | $0.50 per $100 of taxable assessment | Up to and including the 2025 taxation year | 1, 3 |
| Provincial real property tax rate, non-commercial property (before the credit) | $1.70 per $100 of taxable value assessment | Current rate as published on the Property Taxes and Charges page (read 2026-10-28) | 2 |
| Provincial real property tax rate, commercial property | $1.50 per $100 of taxable value assessment (no provincial tax credit) | Current rate as published on the Property Taxes and Charges page (read 2026-10-28) | 2 |
Official eligibility criteria
- A sole owner of a property who resides in PEI "for 183 consecutive days or more each taxation year (January 1 to December 31)".1,4
- A co-owned property where "50 per cent or more of the owners reside in PEI for 183 consecutive days or more each taxation year".1,4
- A corporation is deemed a resident corporation "if 50% or more of the voting shares of the corporation are held by persons who qualify as residents" (Regulations, s. 24(1)(b)).4
- A full-time student at an approved post-secondary institution outside the province "whose ordinary residence is in the province shall be deemed to be a resident person" (Regulations, s. 24(1)(d)).4
- The property must be non-commercial realty assessed in the owner's name, or vested in a resident person or corporation "by a registered document as a life interest" (Act, s. 5; Regulations, s. 24(2)).3,4
- The Act excludes "a person or corporation holding in trust such realty owned by a non-resident person or non-resident corporation" (Act, s. 5).3
Quoted or closely paraphrased from the official program rules. Eligibility is determined by Government of Prince Edward Island, Taxation and Property Records (Department of Finance and Affordability).
How to apply
The program page addresses owners not yet receiving the credit. It states that an owner who does not currently receive the credit "must complete a Request for Provincial Tax Credit form and return it to Taxation and Property Records as directed on the form."
The form is FM-087-T-E, Request for Provincial Tax Credit (version 04-2026). It asks for the parcel number and location of each property. It also asks about joint ownership, corporate ownership, life interests, trusts and the date of any recent move into or out of PEI. It must be signed by all owners with title to the property, a guardian or trustee, or a person with a registered life interest, and returned with proof of residency (the form lists a valid Prince Edward Island driver's licence).
The program page gives no application deadline. Questions go to Taxation and Property Records at (902) 368-4070 or [email protected].
Eligibility is determined by the Government of Prince Edward Island's Taxation and Property Records office.
Key dates
- Credit rises from $0.50 to $0.70 per $100 of taxable assessmentJanuary 1, 2026
- Statement of Account – Property Charges mailedEarly May each year
- Property charge instalment datesMay 31, August 31 and November 30 each year
Provincial Tax Credit Program: common questions
How much is the PEI Provincial Tax Credit in 2026?
The program page gives the credit as "$0.50 until December 31, 2025 and $0.70 for January 1, 2026 onward per $100 of taxable valuable assessment." It applies only to the provincial portion of property tax on non-commercial property. The province's Property Taxes and Charges page lists the provincial non-commercial rate as $1.70 per $100 of taxable value assessment, before the credit.
Who counts as a PEI resident for the credit?
Under section 24 of the Real Property Tax Act Regulations, a person is a resident if they reside in the province for 183 consecutive days or more each taxation year. The program page defines the taxation year as January 1 to December 31. Co-owned property gets the credit if half or more of the owners meet that test. A corporation counts as resident if residents hold 50% or more of its voting shares.
Does the credit apply to commercial property or municipal tax?
No. The province describes the credit as applying "to the provincial portion of property tax on non-commercial property." Commercial property pays the provincial rate of $1.50 per $100 of taxable value assessment with no provincial tax credit. Municipal tax rates, fire district charges and Island Waste Management charges on the same bill are separate and are not reduced by this credit.
Does the credit have to be renewed every year?
The program page says only that an owner who does not currently receive the credit must complete a Request for Provincial Tax Credit (form FM-087-T-E). It does not describe an annual renewal. The form asks whether owners have recently moved to or left PEI and, if so, for the effective date of the change. Taxation and Property Records can be reached at (902) 368-4070.
Why does the Real Property Tax Act still say $0.50?
The online office consolidation of the Real Property Tax Act is marked current to November 29, 2024. Its section 5 still sets the credit at $0.50 per $100 of assessment, and section 4 sets the non-commercial rate at $1.50. The province's program pages, read on 2026-10-28, give $0.70 and $1.70 for 2026. The province states that the statutes prevail if there is any conflict with its web pages.
Related programs
Sources
Checked a second time against these sources on October 28, 2026
- Provincial Tax Credit Program, Government of Prince Edward Island (Taxation and Property Records)Applies to 2025 and 2026 onward (page published October 7, 2026) · checked October 28, 2026 · copy archived
- Property Taxes and Charges, Government of Prince Edward Island (Taxation and Property Records)Applies to Current rates and billing dates (page undated; read 2026-10-28) · checked October 28, 2026 · copy archived
- Real Property Tax Act, R.S.P.E.I. 1988, Cap. R-5 (office consolidation), Government of Prince Edward Island, Legislative Counsel OfficeApplies to Consolidation current to November 29, 2024 · checked October 28, 2026 · copy archived
- Real Property Tax Act Regulations (office consolidation), Government of Prince Edward Island, Legislative Counsel OfficeApplies to Consolidation current to June 29, 2024 · checked October 28, 2026 · copy archived
- FM-087-T-E, Request for Provincial Tax Credit (form version 04-2026), Government of Prince Edward Island (Taxation and Property Records)Applies to Form version 04-2026 (form page published October 7, 2026) · checked October 28, 2026 · copy archived
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