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Payroll Tax Calculator

2025
Payroll Details
$
Payroll Tax Results

Provincial Payroll Tax

$9,800.00

Effective Rate

0.490%

Per Employee

$392.00

Ontario Employer Health Tax$9,800.00
Total Provincial Payroll Tax$9,800.00
Monthly Payment$816.67
Provincial Payroll Tax Overview
ProvinceTax NameRateThreshold
OntarioEmployer Health Tax (EHT)0.98%-1.95%$1M exemption
QuebecHealth Services Fund (HSF)1.25%-4.26%All payroll (rate varies)
ManitobaHealth & Education Levy2.15%-4.3%$2.25M exemption
Newfoundland & LabradorHealth & Post-Sec Edu Tax2.0%$2M exemption
British ColumbiaEmployer Health Tax0.98%-1.95%$1M exemption (2025)
AlbertaNone--
SaskatchewanNone--
Nova ScotiaNone--
New BrunswickNone--
Prince Edward IslandNone--
YukonNone--
Northwest TerritoriesNone--
NunavutNone--
More Information
Frequently Asked Questions
Only a few provinces levy payroll taxes on employers: Ontario (Employer Health Tax), Quebec (Health Services Fund), Manitoba (Health and Education Levy), Newfoundland & Labrador (Health and Post-Secondary Education Tax), and British Columbia (Employer Health Tax, introduced 2019). The remaining provinces and territories do not have provincial payroll taxes. These payroll taxes are in addition to the federal employer contributions (CPP/QPP and EI) that apply in all jurisdictions.
The Ontario EHT is a payroll tax paid by employers on their total Ontario payroll. Small employers (payroll under $5 million) receive a $1 million exemption. The tax rate is graduated: 0.98% on payroll between $200,000 and $230,000 (as an example of the graduated scale), up to 1.95% for payroll over $400,000. Large employers with payroll over $5 million do not receive the exemption and pay 1.95% on total payroll. The tax is self-assessed and remitted annually or in installments.
The Quebec HSF is a mandatory employer contribution that funds the provincial health system. The rate varies by sector and total payroll: primary/manufacturing sectors pay lower rates (starting at ~1.25%), while service sector employers pay higher rates (up to ~4.26%). For most businesses, the effective rate is approximately 4.13%. Unlike other provincial payroll taxes, the Quebec HSF applies from the first dollar of payroll with no exemption threshold for larger employers. Small businesses (payroll under $7.5 million) may benefit from reduced rates.
Yes, most provincial payroll taxes provide exemptions or reduced rates for smaller employers. Ontario: $1 million exemption for employers with payroll under $5 million. Manitoba: $2.25 million exemption. Newfoundland & Labrador: $2 million exemption. British Columbia: $1 million exemption (2025). Quebec does not provide a flat exemption but offers reduced rates for smaller payroll amounts and certain sectors. Registered charities and non-profit organizations may also qualify for reduced rates or exemptions in some provinces.
Filing deadlines vary by province. Ontario EHT: annual return due March 15 (installments required if annual EHT exceeds $600). Quebec HSF: monthly remittances with the source deduction return (due the 15th of the following month). Manitoba HE Levy: annual return due within 5 months of the calendar year end. Newfoundland & Labrador: annual return due March 31. Penalties and interest apply for late filing and late payment. Employers should register with the applicable provincial authority before their first remittance.
Provincial payroll taxes are in addition to federal employer obligations (CPP employer match and EI employer premium at 1.4x). They are also separate from workers' compensation premiums, which are paid to provincial WCB agencies. Payroll taxes are generally deductible as a business expense for income tax purposes. The total burden can be significant in provinces like Quebec, where the combined cost of QPP, EI, QPIP, HSF, and CNESST can add 20%+ to the base salary cost.

CRA-Aligned: Uses 2025 provincial payroll tax rates and thresholds. Quebec HSF rate is simplified; actual rate varies by sector and payroll size. Consult your provincial tax authority for exact rates and filing requirements.

Understanding Payroll Tax in Canada

How employer and employee payroll taxes are calculated

What payroll taxes do employers pay in Canada?

Canadian employers pay several payroll taxes beyond the employee's salary: employer CPP contributions (matching the employee at 5.95%), employer EI premiums (1.4 times the employee premium at 2.296%), and Workers Compensation premiums. In some provinces, there are additional levies like Ontario's Employer Health Tax and Quebec's Health Services Fund.

What is the Employer Health Tax?

Ontario charges the Employer Health Tax (EHT) on total Ontario payroll. The rate ranges from 0.98% for payrolls over $200,000 to 1.95% for payrolls over $400,000. Eligible employers with payroll under $1 million receive an exemption on the first $1 million. British Columbia also has a similar tax called the Employer Health Tax, with rates from 1.95% to 2.925% on payrolls above $500,000.

How are payroll remittances calculated?

For each pay period, the employer calculates the employee's income tax withholding using CRA tables, the employee CPP contribution, and the employee EI premium. The employer then adds its own CPP match and EI premium (1.4x the employee share). The total — employee deductions plus employer contributions — is remitted to the CRA by the due date.

When are payroll remittances due?

The due date depends on your remitter type. Regular remitters (average monthly withholding under $25,000) remit by the 15th of the following month. Threshold 1 remitters ($25,000-$99,999) remit twice monthly. Threshold 2 remitters ($100,000+) remit within three business days of the pay date. New employers are usually monthly remitters.

What are the penalties for late payroll remittances?

CRA penalties for late payroll remittances are steep. The penalty is 3% for 1-3 days late, 5% for 4-5 days, 7% for 6-7 days, and 10% for more than 7 days late or for failures to remit. Repeat offenders face double penalties (up to 20%). Interest is also charged daily on outstanding amounts. Making timely remittances should be a top priority for every employer.

What payroll records must employers keep?

Employers must keep payroll records for at least six years. Required records include employee names, addresses, and SINs; hours worked and earnings; deductions and remittances; T4 slips; and Records of Employment (ROEs). Records must be kept in Canada and made available to the CRA upon request. Failure to maintain records can result in penalties.

What is the Record of Employment (ROE)?

An ROE is a form the employer must issue when an employee has an interruption of earnings — meaning they stop working or their hours drop below 60% of normal. The ROE is used by Service Canada to determine EI eligibility and benefit amounts. Employers must issue the ROE electronically within five calendar days of the interruption of earnings.

CRA-Aligned: Based on 2025 CRA rates and thresholds. For personal advice, speak to a qualified accountant or tax professional.

Disclaimer: This calculator provides estimates based on current CRA rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant before making financial decisions. Read our terms

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