Ontario EHT Exemption Increase


A temporary increase to the Employer Health Tax (ON EHT) exemption from $490,000 to $1 million was passed on March 25, 2020. It is effective for 2020. Eligible private-sector employers with annual Ontario payroll up to $5 million are now exempt from paying ON EHT on the first $1 million they pay in 2020. More information is available from the Ministry of Finance here.

The Annual Exemption Amount changes will apply to the remainder of the current year. The exemption is to return to its current level of $490,000 on January 1, 2021.

The employer is solely responsible for determining the exemption amounts.