Seniors Property Tax Deferral Program
Prince Edward Island's Seniors Property Tax Deferral Program lets owners aged 65 or older with annual household income under $42,000 defer property tax on their principal residence. No interest accrues, and the deferred taxes become payable when the owner dies or sells.
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 Seniors Property Tax Deferral Program is
The program's stated purpose is "to lower the cost of living for qualifying seniors by offering to defer payment of property taxes on their principal residence." Under section 14(5) of the *Real Property Tax Act*, a certificate covers "all existing taxes, including arrears, and all future taxes" on the principal residence, or the proportion specified.
Once accepted, the owner receives a deferred tax certificate by mail. The province explains that "although you will continue to receive your annual property tax bill, you are no longer required to make payments on your annual property taxes." Taxes are still levied each year, but "interest does not accumulate on the deferred property tax account balance."
All deferred taxes become payable when the owner dies or sells the property. Under section 14 of the *Real Property Tax Act*, a surviving spouse may apply to have the certificate transferred to their name and continue the deferral. If an estate cannot cover the full amount on the holder's death, the Act says the remaining obligation "is discharged."
If household income later reaches the $42,000 maximum, the Act requires the certificate to be suspended. Future taxes are then payable when due, but taxes already deferred stay deferred.
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 |
|---|---|---|---|
| Maximum annual household income | less than $42,000 | Current program rules (program page published October 7, 2026; Regulations s. 8.1, amended by EC654/24) | 1, 4 |
| Amount that can be deferred | Annual property taxes on the principal residence. The Act says a certificate covers "all existing taxes, including arrears, and all future taxes" on the residence, or the proportion specified | Current program rules | 1, 3 |
| Interest on deferred taxes | None. The regulations set the rate at "0% per month" | Current program rules (Regulations s. 9(1.1), consolidation current to June 29, 2024; confirmed on the program page published October 7, 2026) | 1, 4, 2 |
Official eligibility criteria
- The applicant is "65 years of age or older".1,3
- The applicant has "occupied your principal residence for at least six months in the year preceding the date of application".1
- Annual household income is "less than $42,000". Under the Act, household income includes the applicant's income for the preceding calendar year and the income of every other person living in the principal residence.1,3,4
- Only one property can be deferred: "you can only defer the payment of property taxes on the property you designate as your principal residence."1
- For part of a multiple-family dwelling, such as half a duplex, taxes can be deferred "only on the portion of the home that you occupy."1
- On properties of more than one acre, commercial or farm property, or structures other than the principal residence, the deferral "may be limited to the house and the lot on which the house is located."1
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
Applicants complete form FM-093-T-E, Application for Real Property Tax Deferral Program for Senior Citizens (version 06-2026, also available in French). They return it to Taxation and Property Records as directed on the form.
The program page states that the application "must include a copy of last year's income tax Notice of Assessment for each of the registered owners of the property and for any other person residing in the house." The form asks for each registered owner's date of birth and social insurance number, the property number and how many months a year the applicant lives on the property. Owners sign that deferred taxes must be paid when the property is sold or conveyed to anyone other than a spouse.
The program page gives no application deadline. Approved applicants receive a deferred tax certificate by mail and an annual statement of the taxes deferred. 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
- Occupancy test periodAt least six months in the year before the application date
- Income year usedPreceding calendar year (last year's Notice of Assessment)
- Deferred taxes become payableWhen the owner dies or sells the property
Seniors Property Tax Deferral Program: common questions
Is interest charged on property tax deferred in PEI?
No. The program page says "interest does not accumulate on the deferred property tax account balance," and the application form says interest does not accumulate from the date of approval. Section 9(1.1) of the Real Property Tax Act Regulations sets the rate on deferred taxes at "0% per month." The annual tax bill shows the accumulated taxes owing.
What is the income limit for the PEI seniors' deferral?
Annual household income must be less than $42,000. Section 8.1 of the Real Property Tax Act Regulations sets this "prescribed maximum amount." The Act defines household income as the applicant's income for the preceding calendar year plus that of every other person living in the residence. The application needs last year's Notice of Assessment for each registered owner and every other resident.
What happens if household income rises above the limit later?
Section 14(7) of the Real Property Tax Act says that when household income is equal to or exceeds the prescribed maximum, the Minister suspends the certificate by notice. From that date, future taxes are payable when due. Taxes already deferred stay deferred and are not called in by the suspension itself.
What happens to the deferred taxes when the owner dies?
The program page says all deferred taxes become payable when the owner dies or sells. Section 14(10) of the Act lets a surviving spouse apply to have the certificate transferred to their name and continue the deferral, whatever the household income. If the estate cannot pay the full amount, section 14(12) says the obligation to pay the remaining balance is discharged.
Can a cottage or a whole farm be deferred?
Only one property can be deferred: the one designated as the principal residence. The province's example is an owner with a winter home and a summer cottage, who can defer only the principal residence. On farm or commercial property, or land over one acre, the deferral may be limited to the house and its lot.
Related programs
Sources
Checked a second time against these sources on October 28, 2026
- Seniors Property Tax Deferral Program, Government of Prince Edward Island (Taxation and Property Records)Applies to Current program rules (page published October 7, 2026) · checked October 28, 2026 · copy archived
- FM-093-T-E, Application for Real Property Tax Deferral Program for Senior Citizens (version 06-2026), Government of Prince Edward Island (Taxation and Property Records)Applies to Form version 06-2026 (form page published October 7, 2026) · checked October 28, 2026 · copy archived
- Real Property Tax Act, R.S.P.E.I. 1988, Cap. R-5, section 14 (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, sections 8.1 and 9 (office consolidation), Government of Prince Edward Island, Legislative Counsel OfficeApplies to Consolidation current to June 29, 2024 · checked October 28, 2026 · copy archived
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