Appealing a Property Assessment in Prince Edward Island: What It Costs, What It Saves

The fees

Referral: the government page describing the process mentions no fee. You complete the form on page 4 of the tax bill and send it to Taxation and Property Records.

IRAC appeal: “There is no charge to file a Real Property Assessment Act appeal with the Commission.” Only the registered mail required by the Act will cost you something.

Lawyer: not required. IRAC notes you may hire one, at your own expense.

How your taxes are calculated

The tax bill combines several items: provincial property tax, municipal property tax, fire district charges and Island Waste Management charges. Provincial tax is set at $1.50 per $100 of taxable value. Island residents may receive a credit of $0.50 per $100 on non-commercial property. Each municipality and each fire district sets its own rate in March.

Annual savings = reduction in taxable value ÷ 100 × total rate per $100. The total rate is the net provincial rate plus the municipal rate (and the fire district rate if it is based on assessment). Your municipal rate is on the Province’s municipal tax rates page.

An example, with fictional numbers

Fictional example, to redo with your own numbers: a rented cottage, so no cap, assessed at $350,000. The referral obtains a $20,000 reduction. The owner is an Island resident and receives the credit. Assume a municipal rate of $0.80 per $100 (a rate invented for the example).

Total rate: $1.50 − $0.50 + $0.80 = $1.80 per $100. Savings: 20,000 ÷ 100 × 1.80 = $360 for the year concerned. Because assessments are revised annually, nothing guarantees the same savings the following year.

This calculation promises nothing: a referral can be confirmed with no change. It helps you judge whether the time is worth it.

The owner-occupied cap

For an owner-occupied home, taxable value rises by no more than the prior year’s CPI, up to 5%, and it “will not exceed the market value assessment,” according to the Province. Your taxes follow taxable value, not market value.

If your taxable value is already below market value, a reduction in market value only lowers your taxes if it falls below taxable value. Fictional example: market value $400,000, capped taxable value $330,000. A reduction of market value to $380,000 does not change the bill. An error in your property’s features can still matter in future years: it is worth correcting.

Costs people forget

For the full process, see the complete guide.

• Your time to gather comparable sales and photos.
• An appraiser’s report (AACI or CRA), useful for a high-value file or one that goes to a hearing. See home appraisal cost.
• Interest: 1% per month on arrears. Pay your instalments during the referral; any adjustment is refunded or credited.

Frequently asked questions