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Employer Health Tax relief (EHT) - Ontario - Canada
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Source verified July 6, 2026

Employer Health Tax relief (EHT)

Ontario payroll tax relief for eligible employers
Offered by
Ontario Ministry of Finance
Official source: ontario.ca
Latest source update
Last Update: May 25, 2026
Latest change: Employer Health Tax guidance was updated with new remuneration and worker-status details, plus clearer filing and contact instructions.
View change
Employer Health Tax guidance updated
Employer Health Tax guidance was updated across several sections, with the biggest changes in remuneration rules and employer-employee relationship tests. New included and excluded remuneration items were added, and the filing and registration pages now provide clearer online service, mailing, and contact instructions. The how-to pages also reflect revised submission guidance for returns, instalments, and supporting documents, while the core tax rate and exemption amount remain unchanged. Some wording was refined for associated employers and worker classification, which may affect who is treated as taxable for EHT.
Funding available
Varies by project
Deadline
Open continuously
Opened May 12, 2020
Location
Ontario, Canada
Who can apply
Eligible employers under the EHT Act.
See full eligibility

Overview

The Ontario Employer Health Tax exemption helps eligible employers reduce payroll tax on Ontario remuneration. It applies to employers with annual Ontario payroll under $5 million, and to registered charities, subject to the program’s rules for associated employers and exemptions.
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Opportunity Score
Moderate potential, but conditions must align.

At a glance

Funding available

Financing goals
  • Attract or retain talent
Eligible Funding
  • Varies by project
Funds Providers

Eligible candidates

Eligible Industries
  • All industries
Location
  • Ontario
Legal structures
  • Public or Parapublic institution
Annual revenue
  • All revenue ranges
Organisation size
  • All organization sizes
Audience
  • All groups

Next Steps

1
Determine your project
2
Validate your eligibility

Documents Needed

  • Application for Employer Health Tax Registration
  • Associated Employers Exemption Allocation form
  • How to complete your Employer Health Tax (EHT) Return
  • Authorizing or Cancelling a Representative

Official resources

Official page

Employer Health Tax (EHT)

Program guide

e-Services

Application form

Application for Employer Health Tax Registration

Associated Employers Exemption Allocation

Associated Employers Exemption Allocation - English - 013-2262e - Central Forms Repository (CFR)

Associated Employers Exemption Allocation - English - 013-2262e - Central Forms Repository (CFR)

Associated Employers Exemption Allocation - Forms - Central Forms Repository (CFR)

Application portal

Application for Employer Health Tax Registration - English - on00155e - Central Forms Repository (CFR)

Application for Employer Health Tax Registration - Forms - Central Forms Repository (CFR)

Eligibility

Who is eligible?

  • Eligible employers under the EHT Act.
  • Registered charities.
  • Associated employers that must share the tax exemption for the year.

Who is not eligible

  • Employers with annual Ontario payroll above $5 million, except registered charities.

Eligible expenses

Eligible expenses for this grant include:

  • Remuneration paid to employees
  • Salaries, wages, bonuses, taxable benefits, stock options, etc.

Eligible geographic areas

  • Ontario

Selection criteria

There are evaluation and selection criteria for this grant. The criteria include:

  • Employers are required to pay EHT on remuneration paid to employees who meet certain conditions
  • Eligible employers must register for an EHT account with the Ontario Ministry of Finance
  • An exemption amount is available for eligible employers based on their Ontario payroll
  • Associated employers must share the tax exemption for the year and meet specific requirements
  • Specific tax rates apply based on the level of Ontario payroll

How to apply

  • Step 1: Register for an EHT account online, by phone, or at a ServiceOntario centre.
  • Step 2: Prepare the annual return and, if applicable, the Associated Employers Exemption Allocation form.
  • Step 3: File the return through ONT-TAXS Online, the EHT Annual Return Portal, in person at certain ServiceOntario centres, or by mail.
  • Step 4: Submit monthly instalments if your payroll exceeds the instalment threshold.

Processing and Agreement

  • Applications and returns are reviewed through Ontario Ministry of Finance processes.
  • Associated employers must file an exemption allocation form with the annual return.
  • The ministry may issue an assessment, after which an objection can be filed if needed.

Additional information

In addition to the eligibility criteria and processes, here are some further details on managing Employer Health Tax (EHT) duties in Ontario:

  • Employers are expected to maintain an accurate record and keep books in line with the EHT Act and Regulations.
  • The interest rates on any outstanding balance for EHT obligations may change quarterly, which employers must stay updated on.
  • Employers needing assistance with specific scenarios can request written interpretations from the Ministry.
  • The Ministry of Finance offers interest and penalty relief during specified periods, such as the COVID-19 relief window.
  • It is essential for employers to accurately complete all information required on EHT-related forms to avoid penalties.
  • Employers who disagree with EHT assessments can file a Notice of Objection or Appeal within designated timeframes.
  • Out-of-province employers establishing themselves in Ontario for less than 24 months should contact the Ministry to understand their obligations.
  • Benefits of compliance include avoiding fines, penalties, and potentially harsh legal repercussions for incorrect filings or misstatements.

Contacts

Advisory.Services@ontario.ca
1-866-ONT-TAXS

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

What is the Employer Health Tax relief (EHT)?

The Ontario Employer Health Tax exemption helps eligible employers reduce payroll tax on Ontario remuneration. It applies to employers with annual Ontario payroll under $5 million, and to registered charities, subject to the program’s rules for associated employers and exemptions.

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

To be eligible for the Employer Health Tax relief (EHT) program, you must: The employer must have an annual Ontario payroll of less than $5 million, unless it is a registered charity. Associated employers must share the exemption for the year. Associated employers must consider the group's combined Ontario payroll.

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

You can contact Ontario Ministry of Finance by email at Advisory.Services@ontario.ca or by phone at 1-866-ONT-TAXS.

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

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

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

Employer Health Tax relief (EHT) is a Tax Credits

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

Employer Health Tax relief (EHT) is funded by Ontario Ministry of Finance, Government of Ontario