2024 Owner-Occupied Residential Property Credit

In 2022 and 2023, the Government of PEI applied subsidies to owner-occupied property tax accounts to offset inflationary provincial tax increases for Islanders.

Now, in 2024 the Government of PEI is providing the Owner-Occupied Residential Property Tax Credit. Without this new credit, owner-occupied properties would see a significant increase in provincial taxes payable for 2024. 

The result of the credit is that the increase in the provincial portion of your property taxes in 2024 will be reduced to the amount it would have been if your assessment on December 31, 2023 was reset to December 31, 2020.

This 2020 base will be adjusted in situations such as, if a property was purchased after December 31, 2020 but before December 31, 2023, if renovations or other changes have occurred which increase assessment, or if changes decreased the assessment since December 31, 2020.

Do I have to apply for the credit?

No, there is not an application process for the credit. You will automatically receive the credit if you own a residential property that was eligible for the owner-occupied assessment on December 31, 2023, ownership for that property has not changed, and no part of the residential property was rented or leased.

How will I know I received the credit?

The subsidy payment will appear on the second page of your Statement of Account Property Charges on the line titled “5.5 Owner-Occupied Residential”.

Frequently Asked Questions:

Am I eligible for the credit?

A residential property is eligible for the credit if it was eligible for the owner-occupied assessment at December 31, 2023, ownership has not changed, and no part of the residential property was rented or leased.

How much will my credit be?

The credit is designed to reset your Provincial property taxes payable to the amount they would be if your taxable assessment at December 31, 2023 was the same as it was at December 31, 2020. 

I purchased my property between January 1, 2021 and December 31, 2023; what credit am I eligible for?

For properties whose ownership changes during 2021 and 2022, the credit will be calculated based on resetting the December 31, 2023 assessment back to the time of the ownership change, not to December 31, 2020. For properties whose ownership change occurred during 2023, no credit will be calculated as there would not be an increase to assessment between the ownership change and December 31, 2023.

I purchased my property after December 31, 2023; what credit am I eligible for?

One of the requirements for the credit is that the property be owned continuously since December 31, 2023. For properties purchased after this date, no credit is available. However, properties purchased after December 31, 2023 may still be eligible for the owner-occupied residential assessment program. More details can be found at https://www.princeedwardisland.ca/en/information/finance/property-assessment.

I received the credit, but my taxes are still higher than they were at December 31, 2020 – how come?

There are multiple factors that may impact your taxes payable. For example:

• The credit is calculated on the basis of having your December 31, 2023 taxable assessment to be equivalent to your December 31, 2020 taxable assessment. For 2024, there is an annual increase based on the consumer price index for 2023 of up to 2.9%.
• Only owner-occupied residential assessments are covered by the subsidy; other types of assessment (e.g. farm, commercial, etc.) would not be covered;
• Increases resulting from new construction or renovations are not eligible for the credit; or
• Tax increases may also be the result of municipal increases, which are not eligible for the credit.

How to pay property tax payable:

Islanders are reminded that property tax assessments for the 2024 tax year will be mailed out on May 7, 2024, and payment installments for 2024 are due on May 31, August 31, and November 30. Please check Property Tax Payments for more information on payment options.

If you do not receive your property tax assessment, please visit the Provincial Taxation Office located on the 1st Floor of the Shaw Building at 95 Rochford Street or call 902-368-4070.

Contact information

For more information about the 2024 Owner-Occupied Residential Property Credit, contact the Provincial Taxation Office at 902-368-4070.