Prince Edward Island HST: 15%
Need to reverse-calculate HST from a PEI total? Use the TaxBackwards.ca reverse HST calculator.
Prince Edward Island charges 15% Harmonized Sales Tax (HST) on most taxable goods and services. HST combines the 5% federal GST and a 10% provincial component into a single tax, fully administered by the Canada Revenue Agency. For every $115.00 paid in PEI, $100.00 is the net consideration base and $15.00 is HST. GST/HST-registered businesses can claim the full $15.00 as an Input Tax Credit on their CRA return.
How PEI HST Reverse Calculation Works
To extract the net pre-tax amount from a gross PEI total, divide by 1.15. To isolate the HST portion, subtract the net from the gross — or multiply the net by 0.15.
Worked example 1: $115.00 gross ÷ 1.15 = $100.00 net. $115.00 − $100.00 = $15.00 HST. The $15.00 is ITC-eligible for a CRA-registered business.
Worked example 2: $230.00 gross ÷ 1.15 = $200.00 net. $230.00 − $200.00 = $30.00 HST.
Common PEI HST Amounts
| Gross Total | Net (Pre-Tax) | HST (15%) |
|---|---|---|
| $57.50 | $50.00 | $7.50 |
| $115.00 | $100.00 | $15.00 |
| $230.00 | $200.00 | $30.00 |
| $575.00 | $500.00 | $75.00 |
| $1,150.00 | $1,000.00 | $150.00 |
| $2,300.00 | $2,000.00 | $300.00 |
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HST Exemptions in Prince Edward Island
The following categories are zero-rated or exempt from HST under federal CRA rules that apply uniformly across all HST provinces, including PEI:
- Basic groceries (most food intended for human consumption)
- Prescription drugs and biologics
- Most medical devices and assistive technologies
- Residential rent and related services
- Most health and dental services
- Most financial services and insurance premiums
Prince Edward Island HST — Frequently Asked Questions
- What is the HST rate in Prince Edward Island?
- Prince Edward Island charges 15% HST on most taxable supplies, consisting of the 5% federal GST and a 10% provincial component, both administered by the Canada Revenue Agency as a single tax.
- How do I reverse-calculate PEI HST from a gross total?
- Divide the gross total by 1.15 to get the net pre-tax amount. Subtract the net from the gross to find the HST. Example: $115.00 ÷ 1.15 = $100.00 net; $115.00 − $100.00 = $15.00 HST.
- Can I claim PEI HST as an Input Tax Credit?
- Yes. If your business is registered for HST with the CRA, the full 15% HST paid on eligible business inputs is recoverable as an Input Tax Credit (ITC), reported on your GST/HST return to reduce your net remittance.
- What is exempt from HST in Prince Edward Island?
- Basic groceries, prescription drugs, most medical devices, residential rent, health and dental services, and most financial services are zero-rated or exempt. PEI also provides point-of-sale rebates that remove the 10% provincial component on children's clothing and footwear, printed books, and residential heating oil — buyers pay only the 5% federal portion on these items at checkout.
- When did Prince Edward Island adopt HST?
- PEI adopted HST on April 1, 2013, replacing its previous 10% Provincial Sales Tax. PEI was the last Canadian province to join the HST framework. The rate increased from 14% to 15% on October 1, 2016, when the provincial component rose from 9% to 10%.
- Are there point-of-sale HST rebates in PEI?
- Yes. PEI provides point-of-sale rebates that eliminate the 10% provincial portion of HST on children's clothing and footwear, printed books, and residential heating oil. On qualifying purchases, buyers pay only the 5% federal portion at checkout — no rebate application is required. The rebate is administered by the CRA on behalf of the province.
- Do self-employed people in PEI pay HST?
- Yes. Self-employed individuals must register for HST with the CRA once taxable revenues exceed $30,000 over any four consecutive calendar quarters. Once registered, they must charge 15% HST on taxable supplies and can claim ITCs on eligible business expenses.
- Is there an HST rebate on new homes in PEI?
- Yes. Buyers of new or substantially renovated homes in PEI may claim a rebate on the provincial portion of HST in addition to the federal GST New Housing Rebate. Consult the CRA's New Housing Rebate guide and a tax professional to confirm eligibility and amounts for your situation.
- Is there a low-income HST credit in PEI?
- Yes. Low-income residents of PEI may qualify for HST relief through federal programs paid quarterly to help offset HST on everyday purchases. Eligibility is assessed automatically when you file your annual income tax return — no separate application is required.
Prince Edward Island and HST: Background
Prince Edward Island was the last Canadian province to adopt the Harmonized Sales Tax, transitioning on April 1, 2013, from a separate 10% Provincial Sales Tax. This later adoption means that some long-running PEI businesses still maintain bookkeeping practices inherited from the PST era. Under HST, the key operational difference is that businesses no longer file provincially — all HST is remitted to the CRA on a single return, and ITC claims apply to the full 15% on eligible inputs.
PEI has no general point-of-sale rebate on the provincial component of HST. The full 15% rate applies to all taxable supplies unless a supply falls under a zero-rated or exempt category as defined by federal legislation. For businesses supplying goods or services both in PEI and other Atlantic provinces, the same 15% HST rate applies throughout the region (with the exception of Nova Scotia, which reduced its rate to 14% in April 2025).
Official CRA Resources
← Calculate Prince Edward Island HST on TaxBackwards.ca
Calculations are arithmetic estimations only and do not constitute formal tax or corporate auditing advice. All figures must be verified against current CRA guidelines before filing.