Ontario business and tax compliance involves four layers: the provincial registry, the Canada Revenue Agency (CRA) for income tax, HST and payroll, the Ministry of Finance for the Employer Health Tax (EHT), and the WSIB for workplace insurance where it applies. Ontario does not run its own corporate income tax system; the CRA collects Ontario corporate tax on the T2 return. Owners in Toronto, Mississauga, Ottawa and Hamilton, including U.S. and India-linked owners, can use this page to see what to register, file and pay in 2026.
Ontario business and tax compliance: how do you register a business?
You create an Ontario.ca Login and an Ontario Business Account, then register the entity in the Ontario Business Registry (OBR). Registration issues a nine-digit Ontario Business Identification Number (BIN), which is not the CRA's business number.
| Entity | Government fee |
|---|---|
| Sole proprietorship or general partnership | $60 |
| Ontario limited partnership | $210 |
| Business corporation | $300 online or by mail |
Online incorporation is immediate; mailed filings take about 15 business days. Unless you use a number name, an Ontario corporation needs an Ontario-biased NUANS name search report, and a federal-biased search will not be accepted. After the registry, register with the CRA for the business number and the accounts you need; our incorporation guide covers the federal alternative.
What Ontario filings repeat every year?
- Annual return. Corporations file through the OBR within six months of their fiscal year-end. The fee is $0. Report changes in directors, officers or addresses within 15 days.
- Beneficial ownership information. Since January 1, 2023 corporations must keep this information on file at the registered or head office, review it at least once a year and provide it to authorities on request. It is not filed with the registry.
- T2 return. Due six months after year-end, including Ontario tax; see the T2 guide.
- EHT annual return. Due March 15 if you are registered.
- HST returns. Annual, quarterly or monthly depending on revenue; see the GST/HST guide.
The company key is the nine-digit code that gives authority to file for the entity. Keep it confidential and share it only with advisers who file for you.
What are Ontario's corporate tax rates in 2026?
The CRA's rates table shows an Ontario basic rate of 11.5% and a lower rate for income eligible for the federal small business deduction of 2.2% effective July 1, 2026, down from 3.2%. The business limit is $500,000. A calendar-year 2026 company blends the two lower rates by days, about 2.7%. Add the 9% federal small business rate and a CCPC pays about 11.2% on the first $500,000 once the new rate is in place, against 26.5% (15% federal plus 11.5%) on income that does not qualify. See the small business deduction guide.
How does the Employer Health Tax work?
EHT is a payroll tax on Ontario remuneration. Eligible employers get a $1 million exemption, but employers with more than $5 million of Ontario payroll, including associated employers, lose it; registered charities are an exception. The rate depends on total Ontario remuneration:
| Total Ontario remuneration | Rate |
|---|---|
| Up to $200,000 | 0.98% |
| $200,000.01 to $230,000 | 1.101% |
| $230,000.01 to $260,000 | 1.223% |
| $260,000.01 to $290,000 | 1.344% |
| $290,000.01 to $320,000 | 1.465% |
| $320,000.01 to $350,000 | 1.586% |
| $350,000.01 to $380,000 | 1.708% |
| $380,000.01 to $400,000 | 1.829% |
| Over $400,000 | 1.95% |
You must register if you are not eligible for the exemption, or if your payroll exceeds it. The annual return and any payment are due March 15; employers with more than $1.2 million of Ontario remuneration pay monthly instalments by the 15th of the following month. File and pay through ONT-TAXS. The next scheduled inflation adjustment to the exemption is January 1, 2029.
Which payroll, HST and workplace insurance rules apply?
HST is 13% and is administered by the CRA together with payroll. Payroll deductions for CPP, EI and income tax follow the federal rules in our payroll guide. The WSIB runs workplace insurance separately, and not every business is covered, so check your industry early. A new Ontario business should also confirm local licences and permits with its municipality.
Worked example: a Mississauga services company
Peel Route Logistics Inc. is a Mississauga CCPC with 12 employees. Its 2027 active business income is $300,000 and its Ontario payroll is $1.3 million.
- Corporate tax. Federal 9% is $27,000. Ontario at 2.2% is $6,600. The total is $33,600, or 11.2%. At the old 3.2% rate Ontario would have been $9,600.
- EHT. Total remuneration is $1.3 million, so the rate is 1.95% and, as the Ontario page describes the calculation, it applies to the amount above the $1 million exemption: $300,000 x 1.95% = $5,850. Because payroll exceeds $1.2 million it pays monthly instalments.
- Annual return. Filed through the OBR within six months of year-end at no fee.
Documents to have ready
- Articles, NUANS report or number name, and the company key.
- Director and officer details and the registered office address.
- Business number and program account numbers.
- Payroll summary by month for the EHT estimate.
- Beneficial ownership records and the latest financial statements.
Mistakes to avoid
- Confusing the Ontario BIN with the CRA business number.
- Ignoring EHT because payroll was under the exemption last year; register when it is exceeded.
- Forgetting that associated employers share one exemption.
- Treating the beneficial ownership register as a filing; it is an internal record.
- Using the 3.2% small business rate for a full 2026 year.
A note for U.S.- and India-linked owners
A U.S. or Indian company opening an Ontario branch or subsidiary registers in the OBR, gets CRA accounts and will often be a non-CCPC, so the general combined rate matters. See our pages on a U.S. company entering Canada and an Indian company entering Canada, the U.S.-Canada treaty guide and India FDI and FEMA reporting. U.S. owners of an Ontario company should also read our foreign business reporting guide.
How we can help
We are a U.S. CPA firm in Aurora, Illinois. We coordinate Ontario registrations and filings with your Canadian CPA, who prepares the T2, HST and EHT returns, and with your Indian Chartered Accountant where needed, and we handle the matching U.S. forms. See our business formation and registrations and payroll and employer compliance services.
Frequently asked questions
Do I need to register with Ontario if I only have a remote employee there?
Ontario's guide says you must register through the OBR if your business has employees, facilities or offices in Ontario.
Does Ontario collect its own corporate income tax?
No. The CRA administers Ontario corporate tax, reported on the T2 return and Schedule 5 if required.
What is the Ontario small business tax rate in 2026?
The CRA lists 2.2% from July 1, 2026, down from 3.2%, on the first $500,000 of eligible income.
When is the EHT return due?
March 15, with any payment. Large payers also make monthly instalments.
Is there an Ontario retail sales tax?
No. Ontario uses the 13% HST, administered by the CRA.
Official sources
- Ontario: Register your business online
- Ontario: Cost and time required to register or file
- Ontario: Ontario Business Registry, all services
- Ontario: Employer Health Tax
- Ontario: EHT tax exemption
- CRA: Corporation tax rates
This page summarizes public guidance in plain language. If anything here differs from the official source, the official source controls.
General information only. It is not tax, legal, accounting or immigration advice for your situation, and rules change; confirm the current rules with the official source or a licensed professional in the relevant country.