A prescription label identity peeler includes a box-shaped housing. A lid extends over the box-shaped housing. A sanding member is adjustably carried within the box-shaped housing. A pair of linkage arms is pivotally extend between the lid and the sanding member. The motorized linkage arms will move the sanding member simultaneously and horizontally against the empty pill bottle in an inverted position, while the wheel on the swing arm assembly will contact a bottom end of the empty pill bottle via compression of the springs, thereby removing the label from the empty pill bottle when the inverted empty pill bottle rotates.