Employer Health Tax relief (EHT) BC

Q: How much funding can be received?

Employer Health Tax relief (EHT) BC Funds up to 6% of admissible expenses.

Q: What is the deadline to apply?

The deadline to apply is not specified.

Q: Is the Employer Health Tax relief (EHT) BC a grant, loan, or tax credit?

Employer Health Tax relief (EHT) BC is a Tax Credits

Q: Who are the financial supporters of the Employer Health Tax relief (EHT) BC?

Employer Health Tax relief (EHT) BC is funded by Government of British Columbia

Q: Who is eligible for the Employer Health Tax relief (EHT) BC program?

To be eligible for the Employer Health Tax relief (EHT) BC program, you must: • Must be an employer with B.C. remuneration over $1,000,000 annually • Must be an individual, corporation, partnership, trust, or government with employees in B.C. • Joint ventures not eligible; only individual venturers considered employers

Q: Who can I contact for more information about the Employer Health Tax relief (EHT) BC?

You can contact Government of British Columbia by email at ITBTaxQuestions@gov.bc.ca or by phone at 1-877-387-3332.

Q: Where is the Employer Health Tax relief (EHT) BC available?

The Employer Health Tax relief (EHT) BC program is available the province of BC.

Last Update: July 22, 2025

BC, Canada

Annual tax relief for employers based on payroll thresholds

At a glance

Eligible Funding

Up to 6% of project cost

Timeline

Unspecified

Financing Type

Tax Credits

Eligible Industries

All industries

Funds Providers

Unspecified

Program status

Open

Overview

The Employer Health Tax relief (EHT) in British Columbia exempts employers with up to $1,000,000 in B.C. remuneration per year from the health tax and provides a reduced rate for those between $1,000,000.01 and $1,500,000, supporting the reduction of tax burdens related to employee payroll. This program is designed to assist eligible employers by reducing or eliminating the annual employer health tax based on total remuneration paid to employees.

Financing terms and conditions

Employers with B.C. remuneration of $1,000,000 or less are exempt from paying the employer health tax.
Employers with B.C. remuneration between $1,000,000.01 and $1,500,000 are taxed at 5.85% on the amount exceeding $1,000,000.
Employers with B.C. remuneration greater than $1,500,000 are taxed at 1.95% on their total B.C. remuneration, with no exemption.
Associated employers must share the $1,000,000 exemption if their combined B.C. remuneration is $1,000,000.01 to $1,500,000; no exemption is available if combined remuneration exceeds $1,500,000.
For part-year employers, exemption and threshold amounts are prorated based on number of days with a permanent establishment in B.C.

Activities funded

Examples of admissible projects:

$ 75,000

Installing accessible playground equipment for community inclusion initiative

$ 85,000

Launching a carbon neutral office retrofit for a marketing firm

$ 95,000

Upgrading manufacturing equipment for eco-friendly packaging production

$ 60,000

Expanding after-school STEM learning programs for underserved youth

$ 70,000

Developing an automated inventory tracking system for food banks

$ 47,500

Implementing a bilingual website for a newcomer service cooperative

Eligibility

The applicant must be an employer with remuneration paid to employees or former employees in British Columbia.
The applicant may be an individual, corporation, partnership, trust, or government with a permanent establishment in British Columbia.
The employer's total B.C. remuneration determines eligibility for exemption or for paying the employer health tax.
Employers associated with others must consider total combined B.C. remuneration for exemption calculations.
Employers that start or cease operation in the province within the calendar year must prorate the exemption and notch rate amounts based on days of operation in B.C.

Who is eligible?

Individuals acting as employers in British Columbia
Corporations with employees in British Columbia
Partnerships operating in British Columbia
Trusts with employees in British Columbia
Government entities with employees in British Columbia
Charitable or non-profit employers in British Columbia

Who is not eligible

Joint ventures (as entities) are not considered employers for the purposes of the Employer Health Tax; only individual venturers are considered eligible employers.

Eligible expenses

B.C. remuneration paid to employees and former employees within the calendar year.

Eligible geographic areas

British Columbia

How to apply

Verify eligibility and requirements

Determine if your B.C. remuneration exceeds the $1,000,000 exemption
Assess if you are considered an employer under the tax rules
Review applicable rates based on your remuneration

Register for Employer Health Tax

Register for the Employer Health Tax if your remuneration exceeds the exemption
Complete registration by the specified annual deadline

Maintain remuneration records

Keep records of total B.C. remuneration paid during the calendar year
Gather necessary documentation for calculation and filing

Calculate tax payable

Calculate your annual Employer Health Tax using the provided formula or online calculator
Prorate exemption and notch amounts if you are a part-year employer

Make instalment and final payments

Pay required instalments by the due dates: June 15, September 15, December 15
Finalize payment before the annual deadline

File annual tax return

File the Employer Health Tax return by March 31 following the tax year
Submit all supporting documentation with your return

Additional information

The Employer Health Tax is deductible from business income for income tax purposes.
Associated employers must share the exemption if their combined B.C. remuneration falls within the specified range.
Joint ventures are not considered employers for the purposes of this tax; the responsibility lies with the venturers individually.
Employers with a permanent establishment in B.C. for only part of the year must prorate the exemption and notch rate amounts based on the number of days present.

Contacts

ITBTaxQuestions@gov.bc.ca

1-877-387-3332

Apply to this program

Frequently Asked Questions about the Employer Health Tax relief (EHT) BC Program

Here are answers to the most common questions about the Employer Health Tax relief (EHT) BC. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.