For years, small businesses in Prince Edward Island (PEI) were stuck an outdated tax system. The Small Business Deduction threshold hadn’t changed since 2009, and PEI had one of the highest corporate tax rates in Canada.
It was time for change. After years of pushing, progress has finally arrived. In PEI’s 2025 budget, the Small Business Deduction threshold was raised from $500,000 to $600,000—the first increase in more than a decade. The general corporate tax rate was also reduced from 16% to 15%. Thanks to our advocacy, more money is now staying in your business, where it belongs.
We’ve created a new tool to help you see exactly how much you could save. You can now calculate your personal tax savings and plan for your business’s future .
The impact is real. A business earning $750,000 will now save $16,500 each year, while a company with $2 million in taxable income will save $29,000. That’s money you can reinvest where it counts: keeping staff, raising wages, upgrading equipment, or growing your business.
Are you looking for more tax advocacy? Join now and become a CFIB member today!
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