Compare taxes and see how much you save moving from Ontario to Prince Edward Island
Ontario residents enjoy dramatically lower provincial income tax than PEI residents at every income level. At $100,000, Ontario saves $6,367 per year in income tax alone. PEI also charges 15% HST — two percentage points more than Ontario's 13%, adding roughly $800/year in sales tax costs on $40,000 of spending. Despite these significant tax disadvantages, PEI attracts a growing stream of Ontario migrants, particularly retirees and remote workers, lured by island housing priced at $300,000–$400,000 compared to Toronto's $1,000,000+. The PEI migration trend is one of the most interesting in Canada: people willingly trading higher taxes for an extraordinary lifestyle at a fraction of the cost.
Lower Income Tax
5 progressive brackets from 5.05% to 13.16%
High Income Tax + 15% HST
5 progressive brackets from 9.65% to 18.75%
At $100,000 income:
Ontario residents pay $6,367 less per year in provincial income tax than PEI at $100,000. PEI also charges 15% HST versus Ontario's 13%, adding ~$800/year in sales tax costs on typical spending.
| Income | ON Tax | PEI Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $2,525 | $5,516 | -$2,991 | -$29,910 |
| $75,000 | $4,753 | $9,245 | -$4,492 | -$44,920 |
| $100,000 | $7,041 | $13,408 | -$6,367 | -$63,670 |
| $150,000 | $12,563 | $22,415 | -$9,852 | -$98,520 |
| $250,000 | $25,023 | $41,165 | -$16,142 | -$161,420 |
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Send Money To/From Canada →Ontario is substantially cheaper on both income tax and sales tax. At $100,000 income, Ontario saves $6,367/year in provincial income tax. Ontario also charges 13% HST versus PEI's 15% HST, saving roughly $800/year more on $40,000 of spending. Total provincial tax advantage for Ontario: approximately $7,167/year.
Prince Edward Island 2026 provincial brackets: 9.65% to $32,656; 13.63% to $64,313; 16.65% to $105,000; 18% to $140,000; 18.75% above $140,000. Source: PEI Department of Finance.
PEI is Canada's smallest province with a limited tax base, heavily reliant on tourism, fishing, and agriculture. With limited corporate tax revenue and significant reliance on federal transfers, the province charges higher income and sales taxes to fund public services. The provincial government has been working to attract more workers and businesses to broaden its revenue base.
It depends heavily on your income and work situation. If you're earning $100,000+, you'll pay roughly $7,000/year more in taxes on PEI. However, if you're trading a $1.2M Toronto home for a $400,000 PEI property, the mortgage savings can be $30,000–$40,000/year. Remote workers and retirees often come out ahead overall despite the tax disadvantage.
PEI has become increasingly popular for Ontario retirees. Lower housing prices allow retirees to downsize and unlock significant equity. The island lifestyle, ocean proximity, and slower pace of life are major draws. On retirement income (typically $40,000–$80,000), the income tax difference is still notable but more manageable than at higher working incomes.
PEI charges 15% HST (Harmonized Sales Tax) — one of Canada's highest, tied with Nova Scotia, New Brunswick, and Newfoundland. This is 5% federal GST plus 10% provincial component, applying to most goods and services.
Remote work has driven significant in-migration from Ontario and BC since 2020. This has boosted PEI's population, increased housing demand, and broadened the provincial tax base — but rates have not come down significantly. The province benefits from each new high-earning remote worker paying its relatively high income taxes while taking advantage of island housing prices.