BC EHT Threshold 2026: What Whistler Businesses Need to Know
- eoghan11
- Jan 27
- 4 min read
Updated: Jan 31
If you’re running a business in the Sea to Sky, you’re no stranger to constantly balancing the need for world-class talent with the rising costs of doing business in a resort town. Between housing crunches and seasonal staffing surges, there is always a new hurdle on the horizon. For 2026, that hurdle is the BC Employer Health Tax (EHT).
As a Whistler based accountant servicing the Sea to Sky, I’ve seen many local owners get caught off guard by the EHT because the busy periods push their annual payroll just over the limit. For the 2026 tax year, the rules have shifted in a way that provides relief for some but adds complexity for others.
Here is everything you need to know to stay compliant and protect your margins.
The New 2026 Thresholds: Who Pays?
The BC government recently doubled the exemption threshold, which is great news for many of clients in the Sea to Sky region. However, the way the tax is calculated once you cross that line can be punishing if you haven't planned for it.
For 2026, the EHT tiers are as follows:
$1 Million or Less: You are fully exempt. You do not have to register or pay any EHT for the 2026 calendar year.
$1,000,001 to $1.5 Million: You fall into the Notch Rate category. You pay 5.85% only on the amount that exceeds $1 million.
Over $1.5 Million: The exemption disappears completely. You pay 1.95% on your entire BC payroll, starting from dollar one.
Whistler Pro-Tip: When providing payroll services in Whistler we provide our clients ongoing visibility on your annual payroll cost as the jumps from $999k to $1m, and $1,499k - $1,501k can be costly – don’t be blindsided.
Mastering the "Notch Rate" Calculation
If you’re a mid-sized Whistler business—perhaps a busy restaurant or a growing construction firm—you likely land in the notch rate.
The Formula:
EHT Payable = (Total BC Remuneration - $1,000,000) \times 5.85\%
This high rate (5.85%) exists to "catch up" the tax liability so that by the time you reach $1.5 million in payroll, you are paying the same amount as a large corporation (which pays 1.95% on the full $1.5 million).
The Seasonal Staffing Complexity
Whistler’s economy is built on seasonal surges. When we provide Whistler payroll services, we pay close attention to total remuneration. In BC, EHT is calculated on almost every form of compensation, including:
Salary and wages.
Bonuses and commissions.
Vacation pay.
Taxable benefits (like that employee housing – a topic for an upcoming blog).
For businesses that hire extra staff for the winter season, it is easy to accidentally drift over the $1M exemption. This is where a Whistler bookkeeper and professional payroll services is vital—we help you track your year-to-date totals in real-time so you can forecast whether you’ll owe the tax long before the March 31, 2026 filing deadline – and adjust accordingly!
Important Deadlines and Installments
If your EHT bill for the previous year (2025) was greater than $2,925, the CRA requires you to pay in quarterly installments throughout 2026.
For 2026, mark these dates on your calendar:
June 15, 2026: First Installment due.
September 15, 2026: Second Installment due.
December 15, 2026: Third Installment due.
March 31, 2027: Final return and any remaining balance due.
Failure to make these payments on time leads to interest charges that can quickly erode your off-season cash reserves.
Strategic Planning for Associated Employers
If you own multiple businesses in the Sea to Sky—perhaps a cafe in Whistler Village and a retail shop in Squamish—you cannot claim the $1M exemption twice.
Under the Associated Employers rule, you must combine the payroll of all related businesses to determine if you cross the threshold. You then must decide how to allocate that $1M exemption across your various corporations. As your Outsourced CFO, we help you navigate these allocations across your entire group to ensure you aren't overpaying in one entity while under-claiming in another.
Summary Table: 2026 EHT at a Glance
Annual BC Payroll | Tax Rate | Effective Deduction |
Under $1,000,000 | 0% | Full Exemption |
$1,000,001 - $1,500,000 | 5.85% | $1,000,000 |
Over $1,500,000 | 1.95% | None ($0) |
Why Strategy Beats "Just Filing"
The BC EHT is a perfect example of why you need more than just a tax preparer; you need a strategic Whistler accountant. By the time you’re filing your return in March, it’s too late to change the outcome.
Strategic payroll management can include:
Timing Bonuses: Deciding whether a performance bonus belongs in the current year or the next to stay under a threshold.
Benefits Review: Evaluating which staff perks are taxable and how they impact your EHT liability.
Cash Flow Modeling: Ensuring your "shoulder season" reserves accounts for those June and September tax installments.
Stop guessing and start growing. At Aspect Accounting, we provide the clarity Sea to Sky entrepreneurs need to thrive in a complex tax environment. Whether you need help with Whistler payroll services or high-level CFO advisory, we ensure your books are a source of strength, not stress.
Comments