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Frequently Asked Questions

1. Why do we pay property taxes?

Provincial property taxes are used to fund provincial programs such as health, education and infrastructure. Municipal taxes are set by municipalities and collected by the provincial government on their behalf.

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2. What is the market value assessment?

 

All real property is assigned a market value assessment by professional assessors employed by the Province. This value is initially set based on such factors as cost of construction and uniformity of property types and locations. This value may be adjusted annually to reflect increases in the market value of property in your area.

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3. What is the taxable value assessment?

 

The assessment used to determine annual property taxes is the taxable value assessment.

The taxable value assessment for owner-occupied residential properties for the current year is the prior year taxable value assessment increased by the change in the Consumer Price Index (CPI) for the prior year.

Year-end assessment increases do not include increases in property value as a result of improvements made to your property.

By tying taxable value assessment increases to changes in the CPI, Islanders who own and occupy their homes are protected from significant year-over-year assessment increases like those that occurred in the past.

For all property other than owner-occupied residential property, the taxable value assessment is still the market value assessment.

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4. Why is there a difference between the market value assessment and the taxable value assessment for my property?

 

The market value assessment of your property may have increased annually based on economic factors and an analysis of sales activity for property in your area. 

The taxable value assessment, however, is tied to the percentage increase in the CPI for the prior year (to a maximum of a 5% increase).

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5. What factors are considered in determining my property assessment?

 

The primary factors that determine the assessment (market) value of a property include:

  • location of the property
  • quality of the site
  • nature of any improvements
  • size, quality and condition of any structures on the property
  • demand and market activity in the area

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6. Are mobile homes assessed differently?

 

The assessment procedure for mobile homes is different than the procedure used for other homes and buildings. The mobile home itself is assessed at market value and a separate assessment is levied against the land on which the mobile home sits. This means that a person owning both a mobile home and the land on which it is located receives two Summary of Property Charges each year.

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7. Who do I contact about changing my mailing address on my Notice of Assessment & Summary of Property Charges?
  Contact Taxation and Property Records Division at 902-368-4070 or complete and submit a Request for Change of Address form.

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8. Is there a tax credit for permanent residents of Prince Edward Island?
  Yes, a provincial tax credit is extended to permanent residents of Prince Edward Island. To qualify as a permanent resident, a person must reside in the province for 183 consecutive days or more in each taxation year (January 1 - December 31st).

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9. Is there a property tax deferral program for senior citizens?
  Yes, there is a Senior Citizen Real Property Tax Deferral Program that is available to those who:

  • are 65 years of age or older,
  • are permanent residents of Prince Edward Island, and
  • have a total household income that does not exceed $35,000

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10. Is there a property tax program for non-profit organizations?
  Certain non-profit groups may qualify for the Grant-in-Lieu program. This program provides the necessary funds for government to pay the provincial non-commercial portion of taxes on properties owned by non-profit organizations.

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11. What has happened to the owner-occupied residential tax credit?
 

The owner-occupied residential tax credit was introduced to limit increases in the residential portion of provincial non-commercial property tax to no more than the annual increase of the Consumer Price Index (CPI) of Prince Edward Island.

With the introduction of the new program for calculating the taxable value assessment for owner-occupied residential property, the owner-occupied residential tax credit program has been discontinued. The current owner-occupied residential tax credits that accumulated between 2003 and 2007 will remain in place, provided the current ownership of the property does not change.

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12. Are there property tax programs for bona fide farms and property owners who rent to farmers?
 

Bona fide farmers and property owners who rent or lease to bona fide farmers are eligible for Provincial and Municipal Tax Credits. Application for these credits may be made through Taxation and Property Records.

Environmental Land Credit:

High Slope Land
If a property of one hectare or more (2.5 acres) has slope greater than 9% and has a farm assessment or farm use assessment, it may qualify for an Environmental Land Credit. Application for this credit may be made through the Provincial Department of Agriculture.

Buffer Zone
If a property has a farm assessment or farm use assessment and has a parcel of land a minimum of one (1) hectare with a cleared or wooded buffer zone, it may qualify for an Environmental Land Credit. Application for this credit may be made through the Provincial Department of Agriculture.

Environmental Farm Building Credit
Under this tax credit program bona fide farmers who are in compliance or actively in the process of complying with environmental legislation and guidelines can receive an Environmental Farm Building Provincial Tax Credit on eligible structures. Application for this credit may made through the Provincial Department of Agriculture.

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13. Where can I get more information?>
  If you have questions about your property tax bill, please do not hesitate to contact Taxation and Property Records

  • Call (902) 368-4070
  • Call long distance at no charge by calling your Access PEI Centre and asking to be connected to our offices in Charlottetown
  • Email:  taxandland@gov.pe.ca
  • Visit us in the Shaw Building (South), 95 Rochford Street, Charlottetown.

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Please note:
This page is prepared for information purposes only, and should not be considered a substitute for the applicable statutes. Should there be any conflict between the contents of this page and the statutes, the statutes shall prevail.

 

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