Prince Edward Island dividend tax, 2026

At the top bracket, Prince Edward Island taxes eligible Canadian dividends at 37.92% against 53.00% on ordinary income — an advantage of 15.08 points for holding the same money as dividends rather than as interest or salary.

Top eligible dividend rate: 37.92%
Rank of 13: 9; 1 is the lowest rate
First bracket to: $33,928

Every bracket

Taxable income up to	Eligible dividends	Non-eligible	Capital gains	Ordinary income
$33,928	-2.79%	15.15%	11.75%	23.50%
$58,523	2.69%	19.71%	13.74%	27.47%
$65,820	11.66%	27.19%	16.99%	33.97%
$106,890	15.98%	30.79%	18.55%	37.10%
$117,045	17.39%	31.96%	19.06%	38.12%
$142,250	24.98%	38.28%	21.81%	43.62%
$181,440	26.88%	39.87%	22.50%	45.00%
$200,000	31.42%	43.65%	24.15%	48.29%
$258,482	32.80%	44.80%	24.65%	49.29%
and above	37.92%	49.07%	26.50%	53.00%

Reading these figures

Dividend rates apply to the dividend actually received, not to the grossed-up amount — the 38% gross-up and the dividend tax credit are already inside them. Capital gains rates apply to the whole gain, not the taxable half. Applying either adjustment again double-counts it.

Nationally

Prince Edward Island ranks 9 of 13 on the top eligible dividend rate, where 1 is lowest. The range runs from 28.33% (Northwest Territories) to 46.20% (Newfoundland and Labrador). Compare all 13.

The threshold above these

Marginal rate is not the whole cost. Above $95,323 of net income, Old Age Security is recovered at 15% — and net income counts the grossed-up dividend, so eligible dividends reach that threshold on roughly 28% less cash than other income does. How that works.

Transcribed 2026-08-06 from a published rate table (source); the underlying brackets and credit rates are set federally and by the province (official figures). Machine-readable: rates.json.