PEI HST: 15% Sales Tax in Prince Edward Island
Prince Edward Island’s sales tax is the 15% HST: 5% federal GST plus a 10% provincial part. PEI moved to the HST in 2013, and the rate has been 15% since 1 October 2016. There’s no separate PST: the CRA collects the whole tax, and PEI rebates its provincial part at the till on a few items, including children’s clothing and printed books.
| PEI sales tax (2026) | Rate |
|---|---|
| Federal part (GST) | 5% |
| PEI provincial part | 10% |
| PEI HST | 15% |
| On books, children’s clothing and footwear | 5% (provincial part rebated) |
Rate confirmed against the CRA rates page on 1 November 2026. PEI’s HST was 14% before 1 October 2016. Try any amount in our GST/HST calculator.
Short answer: register with the CRA once your sales pass $30,000, charge 15% to PEI customers (5% on rebated items) and the delivery province’s rate elsewhere in Canada. The point-of-sale rebates follow the customer, so children’s clothing shipped from PEI to New Brunswick is taxed at the full 15%.
PEI HST quick facts
Section titled “PEI HST quick facts”| Prince Edward Island | |
|---|---|
| Rate | 15% HST |
| Components | 5% GST + 10% provincial part |
| In effect since | 1 October 2016 (14% before) |
| Administered by | Canada Revenue Agency |
| Registration | One GST/HST account with the CRA, once over $30,000 |
| Return | GST/HST return, usually annual for small sellers |
| Point-of-sale rebates | Printed books, children’s clothing and footwear, qualifying heating oil |
| Quick Method (PEI business, PEI sales) | 5.0% goods for resale, 10.0% services |
| Sellers outside PEI | Charge 15% on goods delivered to PEI if GST/HST-registered |
What it means for businesses based in PEI
Section titled “What it means for businesses based in PEI”Seasonal sellers and the $30,000 threshold
Section titled “Seasonal sellers and the $30,000 threshold”Many Island businesses earn most of their money between June and September, from markets, a summer shop and tourists who keep ordering online once they’re home. Two things to watch:
- A big summer quarter can push you past $30,000 in a single calendar quarter. If it does, the sale that takes you over is already taxable, and you have 29 days to register.
- Every channel counts: market sales, your online store, Etsy, wholesale and US orders all go toward the $30,000.
See the small supplier threshold guide and how to register for GST/HST.
Selling on the Island
Section titled “Selling on the Island”Charge 15% HST on taxable sales once registered, and 5% on rebated items. Basic groceries are zero-rated, but much of what tourists buy, such as candy, prepared snacks and souvenirs, is taxable at 15%.
Selling to the rest of Canada and the US
Section titled “Selling to the rest of Canada and the US”GST/HST follows the delivery address. Ship to Toronto and you charge 13%, to Halifax 14%, to Moncton 15%, to Calgary 5%. BC, Saskatchewan, Manitoba and Quebec can require provincial registrations once you sell enough there: see selling across Canada. US orders are zero-rated exports, but expect US duties and tariffs: see shipping to the US from Canada.
What it means for sellers outside PEI
Section titled “What it means for sellers outside PEI”There’s no PEI registration. A GST/HST-registered business anywhere in Canada charges 15% HST on goods delivered to PEI, and 5% on books and children’s clothing and footwear. Unregistered small suppliers charge nothing.
PEI point-of-sale rebates
Section titled “PEI point-of-sale rebates”| Item | HST in PEI | Doesn’t qualify |
|---|---|---|
| Printed books and audio books | 5% | E-books, magazines, colouring books, agendas |
| Children’s clothing | 5% | Adult-sized clothing bought for a child, costumes, protective gear |
| Children’s footwear | 5% | Sports-only footwear such as skates and cleats |
| Qualifying heating oil | 5% |
If a store doesn’t apply the rebate, the customer can claim the provincial part from the CRA on Form GST189.
Worked example: a Charlottetown children’s clothing brand
Section titled “Worked example: a Charlottetown children’s clothing brand”North Shore Kids sells organic cotton baby and children’s clothes from Charlottetown through WooCommerce. It’s GST/HST-registered, but not registered for any provincial sales tax. A $60 order of children’s clothing (free shipping) to different provinces shows how the rebates follow the customer:
| Delivery address | Tax on children’s clothing | Why | Customer pays |
|---|---|---|---|
| Summerside, PE | $3.00 (5%) | PEI rebates its provincial part | $63.00 |
| Halifax, NS | $3.00 (5%) | Nova Scotia rebates its provincial part too | $63.00 |
| Ottawa, ON | $3.00 (5%) | Ontario rebates its provincial part too | $63.00 |
| Saint John, NB | $9.00 (15%) | New Brunswick only rebates books | $69.00 |
| St. John’s, NL | $9.00 (15%) | Newfoundland and Labrador only rebates books | $69.00 |
| Calgary, AB | $3.00 (5% GST) | No provincial tax | $63.00 |
| Boston, US | $0 | Zero-rated export | $60.00 |
Most store platforms don’t know about provincial rebates by default. North Shore Kids sets up a product tax override for children’s clothing so its WooCommerce store charges 5% in PEI, Nova Scotia and Ontario, and the full rate in New Brunswick and Newfoundland and Labrador. Its WooCommerce setup uses a separate tax class for these products.
Filing PEI HST
Section titled “Filing PEI HST”PEI HST goes on your GST/HST return, filed electronically with the CRA, most often through GST/HST NETFILE. New registrants with modest sales are usually annual filers. If your sales are $400,000 or less, compare the Quick Method: 5.0% of tax-included PEI sales for resellers, 10.0% for service businesses.
Edge cases
Section titled “Edge cases”- Ferry and bridge deliveries: goods delivered on the Island are PEI supplies at 15%, whatever carrier you use.
- Market stalls for out-of-province makers: a Nova Scotia maker selling at a Charlottetown market charges PEI’s 15%, not Nova Scotia’s 14%.
- Gift cards: selling a gift card isn’t a taxable sale; HST applies when the card is redeemed for taxable goods.