Canada: Tax measures in 2021 budget (Prince Edward Island)

Canada: Tax measures in Prince Edward Island budget

Prince Edward Island delivered its 2021 provincial budget on 12 March 2021.


The budget would reduce the small business income tax rate to 1% (from 2%), effective 1 January 2022.

Although the budget does not include any changes to individual (personal) income tax rates, it would increase the basic personal income tax exemption to $11,250* (from $10,500) and would increase the low-income tax reduction threshold to $20,000 (from $19,000), effective 1 January 2022.

Read a March 2021 report prepared by the KPMG member firm in Canada

*$=Canadian dollar

© 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us