Provincial Payroll Tax

Currently, five Canadian provinces levy a tax on employers based on the total annual salaries earned by their employees. Depending on the province, a portion or all of these taxes are used primarily to fund the health plans for each province. The provinces who impose a payroll tax are:

British Columbia
Manitoba
Newfoundland and Labrador
Ontario
Quebec

With the exception of Quebec, each of the five provinces who impose a payroll tax also provide an exemption threshold to assist smaller businesses. Use the table below to review the levy requirements for each of the provinces. You can select a province name to view more detailed information about the region.

Note: The Northwest Territories and Nunavut levy provincial health premiums on the income of individuals who are subject to income tax in those jurisdictions (though these levies are not actual income taxes).

Province	Payroll	Tax Rate
British Columbia Employer Health Tax (EHT)	$500,000 or less	Exempt
	Over $500.000 to $1.5 Million	2.925% x (Payroll - $500,000)
	Over 1.5 Million	1.95% x Payroll
Manitoba Health and Post Secondary Education Tax Levy (HE Levy)	$1.5 Million or less	Exempt
	Over $1.5 Million to $3 Million	4.3% x (Payroll - $1.5 Million)
	Over $3 Million	2.15% x Payroll
Ontario Employer Health Tax (EHT)	$1 Million or less	Exempt
Ontario Employer Health Tax (EHT)	Over $1.2 Million	1.95%
Quebec Health Services Fund	$1 Million or less (for businesses other than primary and manufacturing)	1.25% x Payroll
	$1 Million or less (for businesses in primary and manufacturing)	1.65% x Payroll
	Over $1 Million but under $6.5 Million	Use formula defined in the Quebec form TP-1015.G-V
	Over $6 Million	4.26% x Payroll
Newfoundland and Labrador Health and Post Secondary Education Tax (HAPSET)	Under $1.3 million	Exempt
	Over $1.3 Million	2% x Payroll

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