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For Ontario Bookkeepers & Payroll Specialists

Ontario EHT Calculator

Calculate Ontario Employer Health Tax (EHT) owing for any payroll size. Handles the $1,000,000 exemption, $5,000,000 phase-out, associated employer share rules, and monthly installment estimates.

Last updated: 2026-04-24

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Includes salaries, wages, bonuses, commissions, taxable benefits, and other remuneration.

Employer type

Ontario EHT calculation

Effective rate: 0.650% of total payroll

Total Ontario payroll
$1,500,000.00
− Exemption
−$1,000,000.00
= Taxable payroll
$500,000.00
× EHT rate 1.95%
$9,750.00
= Annual EHT owed
$9,750.00
Monthly installment
$812.50
Annual EHT owed
$9,750.00

Installment estimate: $812.50 / month

Estimate only. Always verify against Ontario Ministry of Finance — Employer Health Tax before filing. Final liability depends on your specific employer classification, associated employer relationships, and current-year remuneration as defined by the relevant statute.

Reconcile EHT remittances against actual bank withdrawals

Bookkeepers cross-check what payroll software said was remitted vs. what actually left the operating account. StatementsToExcel converts your bank statement PDFs to Excel in seconds — perfect for year-end EHT reconciliation.

How this calculator works

The Ontario EHT calculation follows three steps:

  1. Determine your exemption. Eligible private-sector employers (and non-profits in some cases) get up to a $1,000,000 exemption against total Ontario payroll. Public-sector employers and Crown corporations are not eligible. If your group’s total Ontario payroll exceeds $5,000,000, the exemption is fully phased out.
  2. Apply associated employer rules. If you’re associated with other Ontario employers (corporate group, common control), the $1M exemption is shared across the group based on a written allocation. Use the calculator’s “Associated” toggle to model your share.
  3. Apply the 1.95% rate to your taxable Ontario payroll (total payroll minus exemption). The result is your annual EHT.

If your prior year’s EHT exceeded approximately $1,200, monthly installments are required (due the 15th of each month following the payroll month). The annual return (Form ON00150E) is due March 15.

Source & methodology

Rates and exemption per Ontario Ministry of Finance EHT publication. Eligible private-sector employers receive a $1,000,000 exemption; the exemption is fully phased out for employers (and associated groups) with Ontario payroll exceeding $5,000,000. Standard rate above the exemption is 1.95%. Public-sector employers and Crown corporations are not eligible for the exemption.

Frequently Asked Questions

Who has to pay Ontario EHT?
Employers with a permanent establishment in Ontario who pay remuneration to Ontario employees. Most private-sector employers with payroll under $1,000,000 owe nothing because of the exemption. Public-sector employers, Crown corporations, and any group with combined Ontario payroll over $5,000,000 pay tax on their full payroll.
How does the $1M exemption work for associated employers?
The exemption must be shared across all associated employers (corporate group, common control, etc.). Each associated employer gets a portion of the $1M exemption based on the agreed allocation. Use the "Associated employer" toggle and enter your share percentage to model this.
When are installments required?
If the prior year's EHT exceeded approximately $1,200, monthly installments are required. Installments are due the 15th of the month following the month being remitted. The annual return (Form ON00150E) is due March 15.
How do I get my total Ontario payroll figure for EHT?
Total payroll for EHT includes salaries, wages, bonuses, taxable benefits, and most other remuneration. It comes from your payroll system (QBO Payroll, ADP, Wagepoint, Ceridian, etc.). For year-end reconciliation, many bookkeepers cross-check payroll system totals against actual cash outflows from the corporate bank account — StatementsToExcel converts those bank statement PDFs to Excel in seconds.

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