Ontario Employer Health Tax Calculator
Estimate your Ontario Employer Health Tax (EHT) for 2026. Payrolls of $1,000,000 or less are fully exempt, payroll above $1,000,000 pays 1.95% on the amount above the exemption, and total Ontario payroll over $5,000,000 loses the exemption entirely, so 1.95% applies to the whole payroll. Enter your total annual Ontario payroll to see the EHT owed.
Estimate only for the 2026 tax year. Not tax, accounting or financial advice. Talk to RN Canada about your situation.
How it works
The calculator applies the 2026 Ontario EHT structure: no tax up to the $1,000,000 exemption, 1.95% on the portion above $1,000,000 while total payroll stays at or below $5,000,000, and 1.95% of the full payroll once total payroll exceeds $5,000,000 and the exemption no longer applies.
What the result includes
Results show whether the exemption applies, the EHT owed for 2026, and the effective rate on your total Ontario payroll.
Assumptions
Assumes a regular (non-charity, non-non-profit) employer with all remuneration paid in Ontario; associated employers must share a single exemption, which this calculator does not model.
Frequently asked questions
Employers with $1,000,000 or less of Ontario payroll pay no Employer Health Tax. The exemption applies to eligible private-sector employers and is shared among associated employers rather than granted to each one separately.
EHT is 1.95% of the amount above $1,000,000, not the whole payroll, as long as total Ontario payroll stays at or below $5,000,000. A $1,500,000 payroll pays 1.95% x $500,000 = $9,750.
The $1,000,000 exemption is lost entirely and 1.95% applies to the full payroll, not just the amount above $1,000,000 or above $5,000,000.
No. Alberta has no Employer Health Tax, unlike Ontario and British Columbia. See the employer payroll cost calculator to compare the full fully-loaded cost of an employee.
Last reviewed: 2026-08-19. Sources: Government of Ontario — Employer Health Tax