Online Guide for Newcomers to Prince Edward Island - Canada
In PEI sales tax is charged on almost everything you buy. The final price you pay at checkout will be higher than the price tag on the item on the shelf or the service listed on a price list.
There are two types of sales tax you may have to pay when you buy products and services:
- Goods and Services Tax (GST) - 5%
- Provincial Sales Tax (PST) - 10%
When you are purchasing something, the GST is charged first. Then the PST is charged on the sum of tag price and GST, which makes the total sales tax equal to 15.5% of the purchase price.
For example, if you are buying something that has a price tag of $100, and both sales taxes are charged, you will pay $115.50 at checkout.
Sales Tax Exemptions
There are tax exemptions -- things on which you don't have to pay sales tax. Some items that are GST exempt are:
- basic grocery items like milk, eggs, rice, etc.
- prescription drugs
There are some services that are GST exempt as well, like residential rent, health and dental care, educational services, day care services, legal aid services, and financial services.
Some items that are PST exempt in PEI are:
- footwear (shoes, sneakers, etc.)