Dear Members, 

Following the tabling of the 2026–27 Prince Edward Island Budget, the Atlantic Chamber of Commerce has prepared the summary below outlining several key measures and fiscal highlights.

Prince Edward Island 2026-2027 Operating Budget 

The Government of Prince Edward Island tabled its 2026-27 operating budget yesterday. Revenues total $3.4 billion and spending totals $3.8 billion for a total deficit of $410 million. Deficits are projected at $386.2 million in 2027-28 and $338 million in 2028-29 while net debt will rise from $3.8 billion at the end of 2025-26 to $5.1 billion by 2028-29.

Key items in 2026/2027 Budget

• No new corporate income tax changes were announced.
• New personal income tax bracket for income over $200,000. It is expected to raise $4.4 million per year.
• Non-resident property tax rate increased by 20 cents per $100 of assessed value.
• Insurance premium tax increased by 0.25 percent.
• The two tax changes above are expected to generate about $2 million combined.
• Residential electricity rebate program ends after June 2026. This removes the 10 percent subsidy on the first 2,000 kilowatt hours per month. It averaged $175 per year per household.
• New PEI Essentials Benefit starts July 1, 2026. Quarterly payments are $310 per individual or $365 per couple. Full amount applies to households earning up to $95,000. It phases out for higher incomes down to about $175.
• Transportation, infrastructure and energy spending drops by nearly $40 million to $279.1 million.
• The Community Housing Expansion Program has been paused.
• The Tariff and Trade Contingency Fund has been scaled back due to low uptake.
• The government created a cabinet committee on fiscal responsibility and red tape reduction. It has 12 months to develop a plan for the deficit and debt

https://www.atlanticchamber.ca/