The “Basic personal amount” for Prince Edward Island in the 2014 tax package is $7,708 – Line 5804 – Basic personal amount.
PEI’s basic personal amount tax credit is the lowest in Canada – see all amounts for 2015 here.
This need for an increase has been raised numerous times by different constituents in District 18.
Information and Analysis (credit to Sean Wheeler)
Here is some information and analysis done on PEI’s basic personal amount during the 2015 election.
- Every $1,000 increase up to $31,984 is equal to $98 in savings per person earning over $10,000
- Every $1,000 increase is equal to a decrease in revenue to government of $9.4 million
- PEI Has the Highest low income tax rate and lowest personal exemption
Median Income on Pei is $29,310
Based on someone making median income:
- 8.79% on the first $29,590 of taxable income
- Personal Exemption is currently $8,481
- Living in Nova Scotia – save $286
- 9.68% on the first $39,305 of taxable income
- Personal Exemption is currently $9,472
- Living in New Brunswick – save $197
- 7.7% on the first $34,254 of taxable income
- Personal Exemption is currently $8,578
- Living in Newfoundland – save $521