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Employer Health Tax relief (EHT) - Ontario - Canada
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Employer Health Tax relief (EHT)

Ontario payroll tax relief for eligible employers and charities
Ontario Ministry of Finance (MOF)
Government of Ontario (ON)
Last Update: March 4, 2026
Funding available
No Condition
Timeline
  • Open Date : May 12, 2020
Location
Ontario, Canada

Overview

The Employer Health Tax (EHT) relief provides an exemption of up to $1 million on Ontario payroll to eligible employers, helping reduce payroll tax liability. The program supports organizations by offsetting tax costs on salaries, wages, and other employee remuneration, thereby encouraging job retention and operational sustainability.

/100
Opportunity Score
Moderate potential, but conditions must align.

At a glance

Funding available

Financing goals
  • Attract or retain talent
Eligible Funding
  • No Condition
Timeline
  • Open Date : May 12, 2020

Eligible candidates

Eligible Industries
  • All industries
Location
  • Ontario
Legal structures
  • Non-profit
  • Public or Parapublic institution
  • For-profit business
  • Sole proprietorship
Annual revenue
  • All revenue ranges
Organisation size
  • All organization sizes
Audience
  • All groups
Non-profit candidates
Sector of operation
  • All industries
Target groups
  • Business owners / entrepreneurs
  • Nonprofits / charities
Revenue structures
  • All structures
Scope
  • Provincial

Next steps

1
Determine your project
2
Validate your eligibility

Eligibility

Who is eligible?

Eligible employers, as defined under the EHT Act, can apply for the Employer Health Tax (EHT) exemption if they meet the following conditions: they pay income taxes, their Ontario payroll is less than $5 million, or they are a registered charity, and they are not controlled by any level of government.

Eligible expenses

Eligible expenses for this grant include:

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

Eligible geographic areas

This grant is explicitly applicable to employers operating in Ontario. The scope restricts eligibility based on the employer's establishment location within Ontario.

  • Employers with a permanent establishment in Ontario.
  • Companies paying employees from an Ontario-based establishment.
  • Registered charities operating in Ontario.

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.

Documents and links

Employer Health Tax relief (EHT)

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

Here are answers to the most common questions about the Employer Health Tax relief (EHT). 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.

What is the Employer Health Tax relief (EHT)?

The Employer Health Tax (EHT) relief provides an exemption of up to $1 million on Ontario payroll to eligible employers, helping reduce payroll tax liability. The program supports organizations by offsetting tax costs on salaries, wages, and other employee remuneration, thereby encouraging job retention and operational sustainability.

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 or be a registered charity. The employer must not be under the control of any level of government. Eligible employers in an associated group must share the tax exemption using the Associated Employer Exemption Allocation form.

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

You can contact Ontario Ministry of Finance (MOF).

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 (MOF), Government of Ontario (ON)

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