Provincial Tax: Understand how federal and provincial tax rates stack together with our Canadian Provincial Tax Guide.
Use this calculator to find the sales tax on purchases in Prince Edward Island. PEI charges 15% HST (Harmonized Sales Tax) on most goods and services — tied for the highest rate in Canada alongside the other Atlantic provinces.
You can also enter the total amount after tax to reverse-calculate the pre-tax price—useful for accounting, returns, or budgeting.
How PEI’s HST works
Prince Edward Island uses the Harmonized Sales Tax (HST) system, combining federal and provincial taxes into a single 15% rate:
| Component | Rate |
|---|---|
| Federal portion (GST) | 5% |
| Provincial portion | 10% |
| Total HST | 15% |
PEI adopted the HST on April 1, 2013, replacing the previous system where 5% GST and 10% PST were charged separately. The HST is administered by the Canada Revenue Agency (CRA), which collects the tax and distributes the provincial share to PEI.
Quick HST calculation examples
Here are common purchase amounts with PEI’s 15% HST:
| Purchase Price | HST (15%) | Total Cost |
|---|---|---|
| $50 | $7.50 | $57.50 |
| $100 | $15.00 | $115.00 |
| $500 | $75.00 | $575.00 |
| $1,000 | $150.00 | $1,150.00 |
| $5,000 | $750.00 | $5,750.00 |
| $25,000 | $3,750.00 | $28,750.00 |
| $50,000 | $7,500.00 | $57,500.00 |
Formula: Total = Purchase Price × 1.15
Before HST: The old PEI GST + PST system
Before April 2013, PEI had a two-tax system:
- 5% GST (federal)
- 10% PST (provincial)
The key difference: Some items were subject to GST but not PST (or vice versa), creating complexity. Under HST, all taxable items now pay the full 15%, simplifying tax collection and allowing businesses to claim full Input Tax Credits.
What is exempt from HST in PEI?
The following items are zero-rated (0% HST) or exempt:
Zero-rated items (0% HST):
- Basic groceries (milk, bread, vegetables, meat, eggs)
- Prescription drugs and dispensing fees
- Most medical devices
- Feminine hygiene products
- Children’s clothing and footwear (most items)
Exempt items (no HST charged):
- Residential rent (long-term leases)
- Resale of used residential property
- Most health and dental services
- Educational services and tutoring
- Childcare services
- Most financial services
Fully taxable at 15%: Restaurant meals, prepared foods, alcohol, tobacco, vehicles, gasoline, electronics, furniture, and most services.
Cost of PEI’s 15% HST on major purchases
Understanding the tax impact on large purchases:
| Purchase Type | Cost | HST (15%) | Total |
|---|---|---|---|
| New vehicle | $35,000 | $5,250 | $40,250 |
| Home renovation | $20,000 | $3,000 | $23,000 |
| Furniture | $6,000 | $900 | $6,900 |
| Electronics | $2,500 | $375 | $2,875 |
| Appliances | $4,000 | $600 | $4,600 |
On a $35,000 vehicle purchase:
- Alberta resident pays: $36,750 (5% GST = $1,750)
- Ontario resident pays: $39,550 (13% HST = $4,550)
- PEI resident pays: $40,250 (15% HST = $5,250)
- Extra vs Alberta: $3,500
- Extra vs Ontario: $700
PEI HST vs other provinces
PEI has the highest sales tax rate in Canada, tied with the other Atlantic provinces:
| Province/Territory | Tax System | Total Rate |
|---|---|---|
| Alberta, Yukon, NWT, Nunavut | GST only | 5% |
| Saskatchewan | GST + PST | 11% |
| BC, Manitoba | GST + PST | 12% |
| Ontario | HST | 13% |
| Quebec | GST + QST | 14.975% |
| PEI, NS, NB, NL | HST | 15% |
PEI residents pay 2% more than Ontarians and 10 percentage points more than Albertans on every purchase.
How to reverse-calculate HST
If you have a total and need to find the pre-tax amount:
Formula: Pre-tax Price = Total ÷ 1.15
Example: You paid $115.00 total. What was the pre-tax price?
- Pre-tax: $115 ÷ 1.15 = $100.00
- HST paid: $100 × 0.15 = $15.00
To find just the HST amount: HST = Total × (15 ÷ 115) = Total × 0.1304
HST for businesses in PEI
Businesses registered for HST (required if annual sales exceed $30,000) must:
- Charge 15% HST on taxable supplies
- Collect and remit to the CRA
- Claim Input Tax Credits (ITCs) on business purchases
- File HST returns monthly, quarterly, or annually
Example: A landscaping business charges $5,000 for services. They collect $750 HST ($5,750 total). If they paid $2,000 for supplies including $300 HST, they claim a $300 ITC. Net HST owing: $750 - $300 = $450.
Common PEI HST questions
Is there HST on used cars in PEI?
Yes. Private sales of used vehicles are subject to 15% HST based on average retail value (from provincial tables), not the sale price. You pay this when registering the vehicle.
Do I pay HST on rent in PEI?
No for long-term rentals (30+ days). Short-term accommodations like hotels and vacation rentals under 30 days are subject to full 15% HST.
Is there HST on gas in PEI?
Yes. The pump price includes federal excise tax, then 15% HST is applied to the total. On $1.50/litre gas, roughly 20¢ is HST.
Can I get HST back as a consumer?
Generally no. Businesses claim ITCs, and there are rebates for new home purchases. Low-income residents may receive the quarterly GST/HST credit from CRA as tax relief.
New home HST rebate in PEI
Buyers of new homes may be eligible for a partial federal HST rebate (on the 5% federal portion) for homes under $450,000. PEI also offers a provincial HST new housing rebate that can reduce the provincial portion of HST for qualifying first-time and move-up buyers.
Annual tax impact for PEI residents
Assuming $40,000/year in taxable household spending:
| Province | Tax Rate | Annual Tax | vs PEI |
|---|---|---|---|
| Alberta | 5% | $2,000 | Save $4,000 |
| Ontario | 13% | $5,200 | Save $800 |
| PEI | 15% | $6,000 | — |
The 15% HST means PEI families pay an extra $4,000 per year compared to Albertans on the same spending.
All provinces: Sales tax rate comparison
Sources
- Canada Revenue Agency. “Tax Information for Individuals.” canada.ca/en/revenue-agency
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