How to calculate PEI's 15% HST
Adding HST: tax = price × 0.15, total = price × 1.15. Removing HST from a total: price = total ÷ 1.15, tax = total − price.
Worked example on $100
A $100 purchase: tax = $100 × 0.15 = $15.00. Total = $100 + $15.00 = $115.00. Working backwards from that $115.00 total: price = $115.00 ÷ 1.15 = $100.00, tax = $115.00 − $100.00 = $15.00.
What's taxed and what's exempt
Most goods and services carry the full 15% HST. Exempt from HST altogether: basic groceries, prescription drugs, most health and dental services, and long-term residential rent. Point-of-sale rebates remove the 10% provincial share (leaving just 5% GST) on heating oil, children's clothing and footwear, and books. A $25 children's coat is taxed at 5% only ($1.25), while a $25 adult scarf carries the full 15% ($3.75).
PEI was the last province to switch to HST
Prince Edward Island charged separate GST and PST until April 1, 2013, when it became the most recent province to harmonize — sixteen years after New Brunswick, Nova Scotia and Newfoundland and Labrador did the same in 1997. PEI's HST started at 14%, combining the 5% federal GST with a 9% provincial portion.
Rate rose to 15% in 2016
The Government of Prince Edward Island raised its own portion of HST from 9% to 10% effective October 1, 2016, bringing the combined rate to 15% — the same level New Brunswick and Newfoundland and Labrador reached that same year.
Registering to collect HST as a small business
HST is federally administered, so PEI has no separate provincial sales tax registration — one CRA GST/HST account covers it. Registration is mandatory once your total taxable revenue (including any associated businesses) passes $30,000 over four consecutive calendar quarters, or within a single quarter; below that you're a small supplier and registration is optional. Once registered, you charge 15% HST on taxable sales delivered in PEI and remit what you collect, minus input tax credits, to the CRA.
Rate last checked: September 2026. Sources: Canada Revenue Agency, GST/HST Info Sheet (PEI HST, 2013) and GI-195 (PEI rate increase, 2016).