PEI delivered its 2021 provincial budget on March 12, 2021.
The budget anticipates a deficit of $112.1 million for 2021 and projects for deficits of $45.7 million for 2022 and $27.9 million for 2023. The budget reduces the small business income tax rate to 1% (from 2%), effective January 1, 2022. Although the budget does not include any changes to personal income tax rates, it increases the basic personal income tax exemption to $11,250 (from $10,500) and increases the low-income tax reduction threshold to $20,000 (from $19,000), effective January 1, 2022.
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