The following tax changes are in effect January 1, 2019.
The small business income tax rate will be reduced from 10% to 9% effective as of January 1, 2019.
The province will introduce an Employer Health (payroll) Tax effective January 1, 2019.
The provincial education tax credit is eliminated as of the 2019 tax year.
Effective January 1, 2019, the business limit for income eligible for the provincial small business deduction will increase from $450,000 to $500,000.
The Rental Housing Construction Tax Credit is eliminated as of 2019.
Prince Edward Island
For corporation tax years ending after December 31, 2018, the small business income tax rate is reduced from 4% to 3.5%.
The basic personal credit amount is increased to $9,160.
The province introduces an Innovation Equity Tax Credit for 2019 and later years.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.