Lunio
Back to blog Taxes

PEI HST Explained (2026) – Simple Guide for Small Businesses

Learn how HST works in PEI, including the 15% rate and how to apply it correctly on invoices.

PEI HST Explained (2026) – Simple Guide for Small Businesses

Last updated: May 2026

HST in Prince Edward Island (Quick Answer)

In PEI, businesses charge 15% HST on most goods and services.

What Is HST?

HST combines federal and provincial taxes into one single rate.

  • 5% GST
  • 10% provincial tax

PEI Tax Rate Breakdown

Tax Type Rate
GST 5%
Provincial 10%
Total 15%

When Do You Charge HST?

  • Your customer is in PEI
  • You are registered

Example Calculation

Subtotal $100
HST (15%) $15
Total $115

Common Mistakes

  • Using the wrong rate
  • Charging based on the wrong province

Tools

FAQ

What is HST in PEI?

15% combined tax.

Final Thoughts

PEI uses a simple HST system, making tax calculations straightforward.

React to this post
Responses are anonymous and help us plan future content.

Start sending professional invoices today.

Lunio gives Canadian businesses a faster, clearer invoicing workflow.