BC Employer Health Tax EHT Explained: Who Must Register & How to Calculate

The BC Employer Health Tax (EHT) is a yearly payroll tax on B.C. remuneration. For 2026, the higher exemption changes who must register in eTaxBC, who owes EHT, and how much to pay. This guide covers who must register, how to calculate the tax, special rules for charities and associated employers, and the deadlines to avoid penalties.

How BC Employer Health Tax EHT works in 2026

EHT applies when your B.C. payroll crosses the provincial exemption. If you are below the threshold, no EHT is due. If you are above it, you calculate using the current formulas and file once a year in eTaxBC.

That removes the duplicate “what it is” paragraph, keeps your keywords, and flows cleanly into thresholds, rates, and examples.

Who must register in 2026

Most employers must register when their B.C. remuneration is over $1,000,000 in a calendar year. Registered charities and eligible non-profits use a $1,500,000 exemption per qualifying location. Registration is done in eTaxBC. 

If your business is part of an associated group of employers, special rules can require registration and affect the exemption and calculation. The province provides specific filing guidance for these situations. 

The current 2026 thresholds and rates

For most employers in 2026:

• $1,000,000 or less: no EHT payable.
• $1,000,000.01 to $1,500,000: pay a reduced amount using the notch formula 5.85% × (B.C. remuneration − $1,000,000).
• Over $1,500,000: pay 1.95% of total B.C. remuneration.

For registered charities and eligible non-profits (per qualifying location):

• $1,500,000 or less: no EHT for that location.
• $1,500,000.01 to $4,500,000: pay 2.925% × (B.C. remuneration − $1,500,000) for that location.
• Over $4,500,000: pay 1.95% of total B.C. remuneration for that location.

Note: The province also keeps an archived page for 2023 and prior years that used the older $500,000 exemption and different notch math. If you are reviewing historical filings, use those rules for those years.

How to calculate quickly

1. Total your B.C. remuneration for the calendar year.
2. Identify which rule set you use: general employer or charity/non-profit.
3. Apply the correct formula above to find the tax payable.
4. If you are an associated employer, follow the province’s associated-employer filing instructions before you finalize the number.

Example, general employer:
A B.C. payroll of $1,250,000 in 2026. You fall in the notch range.
Tax = 5.85% × ($1,250,000 − $1,000,000) = 5.85% × $250,000 = $14,625. 

Example, registered charity (single qualifying location):
B.C. remuneration of $2,000,000 at one qualifying location.
Tax = 2.925% × ($2,000,000 − $1,500,000) = $14,625. 

Deadlines and filing basics

• Register in eTaxBC when you cross the registration threshold for the year.
• File and pay the EHT by March 31 of the following calendar year. If March 31 falls on a weekend or B.C. holiday, the due date moves to the next business day.

Common questions we hear

Do I need to register if I am under the threshold now but expect to exceed it this year?
Generally, you register when your B.C. remuneration exceeds the exemption in the current year. Check the province’s FAQ for edge cases such as associated groups and part-year operations.

Does the exemption pro-rate if I started mid-year?
Part-year situations and associated employers have specific rules. Review the associated employer and filing guidance or ask us to confirm your exact case.

How do charities with multiple locations file?
You calculate the tax for each qualifying location and then file one combined return. If your total remuneration across locations exceeds $1,500,000, you still must register, even if no tax is payable.

What to do next

• Confirm your year-to-date B.C. remuneration and your employer type.
• If you will cross the threshold, register in eTaxBC and set up reminders for the March 31 filing.
• If you are in a group of associated employers, align your approach with the province’s guidance before you file.
• If you want help, RHN can calculate your liability using your real payroll, then prepare your return and payment instructions.

 

This post has been prepared for general information purposes. It is not advice. The information presented may not fit your unique situation. Please consult one of our trusted business advisors at RHN CPA for further clarification and interpretation of your circumstances.

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