If you are an employer, read frequently asked questions for employers
- How is the Ontario Health Premium structured?
- How much revenue does the government collect annually in health premiums?
- Where does this money go? What is it invested in?
- When did the Ontario Health Premium come into effect?
- Are there any other provinces that charge a health premium?
- Who must pay the Ontario Health Premium?
- How does this affect families? Is the Ontario Health Premium based on combined family income?
- Are seniors required to pay the Ontario Health Premium?
- Will anyone be denied access to health care for failing to pay the Ontario Health Premium?
- Do people have to pay the Ontario Health Premium if they don't have to pay Ontario income tax?
- How do individuals who pay their taxes by instalment pay the Ontario Health Premium?
- How do seniors who do not receive employment income pay the Ontario Health Premium?
- How do self-employed individuals pay the Ontario Health Premium?
- Do members of the RCMP or the Armed Forces have to pay the Ontario Health Premium?
- Do Aboriginal people pay the Ontario Health Premium?
How is the Ontario Health Premium structured?
The Ontario Health Premium is a tax based on income. Individuals with taxable income of $20,000 or less are exempt. Above that, premium levels rise with taxable income.
Please view this table to determine the Ontario Health Premium level based on taxable income.
How much revenue does the government collect annually in health premiums?
Revenue from the Ontario Health Premium should approximately $3 billion to the health care system each year.
Where does this money go? What is it invested in?
Every dollar of the Ontario Health Premium is invested directly in our health care system.
It is expected that the Ontario Health Premium will add approximately $3 billion of revenue each year.
The government publicly reports where the revenue generated by the Ontario Health Premium is allocated. The legislation requires the government to report on the use of the revenue from the Ontario Health Premium in the Public Accounts of Ontario each year.
When did the Ontario Health Premium come into effect?
The Ontario Health Premium came into effect for the 2004 tax year. The Ontario Health Premium was first deducted from employee payrolls and pension cheques on July 1, 2004.
Are there any other provinces that charge a health premium?
Ontario's health premium is based on taxable income greater than $20,000 per year. British Columbia currently has a health premium. British Columbia offers limited premium assistance to residents with low incomes. Learn more about the British Columbia health premium.
Who must pay the Ontario Health Premium?
The Ontario Health Premium applies to individuals who are residents of Ontario on the last day of the taxation year. Trusts and non-resident taxpayers are exempt from the Ontario Health Premium.
The amount of the Ontario Health Premium payable, if any, depends on the individual's taxable income for the year. Individuals with taxable incomes under $20,000 do not pay any Ontario Health Premium.
How does this affect families? Is the Ontario Health Premium based on combined family income?
No. The Ontario Health Premium is based on individual taxable income. Regardless of whether someone is married, divorced, separated or single, the Ontario Health Premium is charged only on the basis of one's own taxable income.
Therefore, a married couple where each spouse had taxable income of $40,000 a year pays the Ontario Health Premium based on individual taxable income of $40,000 each, as opposed to a family premium based on their combined taxable income of $80,000.
This also means that the Ontario Health Premium does not apply to family members who have little or no income (such as a stay at home spouse, children or other dependants).
Are seniors required to pay the Ontario Health Premium?
In designing the Ontario Health Premium, the government decided that it would be more equitable to base liability on income, rather than age. Individuals with taxable income of $20,000 or less are exempt from paying the Ontario Health Premium.
Will anyone be denied access to health care for failing to pay the Ontario Health Premium?
No resident is denied access to Ontario's publicly funded health care services for failing to pay the Ontario Health Premium.
Do people have to pay the Ontario Health Premium if they don't have to pay Ontario income tax?
Individuals with taxable income over $20,000 pay the Ontario Health Premium, even if they don't pay any Ontario income tax. Similarly, people with taxable income of $20,000 or less do not pay the Ontario Health Premium but may still pay Ontario income tax.
How do individuals who pay their taxes by instalment pay the Ontario Health Premium?
Individuals who remit tax instalments based on their previous years' net tax owing, should increase their current instalments to include the Ontario Health Premium. Instalment interest may be charged if these instalment payments are insufficient.
Individuals determine the actual amount of the Ontario Health Premium on the form ON428 Ontario Tax when they file their annual personal income tax returns. If the current instalments were insufficient, individuals could have a balance owing on their tax return.
How do seniors who do not receive employment income pay the Ontario Health Premium?
Seniors who receive pension income of more than $20,000 a year have the Ontario Health Premium deducted at source along with other taxes. Seniors who receive income from other sources that are not subject to tax withholdings may wish to request an increase in the amount of tax withheld from their pensions by designating an additional amount on the TD1ON, 2010 Ontario Personal Tax Credits Return.
Alternatively, seniors may elect to have income tax withheld from Old Age Security (OAS) and Canada Pension Plan (CPP) benefits by completing and sending form ISP3520, Request for Voluntary Federal Income Tax Deductions, to Human Resources and Skills Development Canada (HRSDC). The form is available on the HRSDC website.
Individuals who have elected to have income tax deducted from OAS or CPP, may wish to increase the amount to include the Ontario Health Premium.
Individuals who do not have taxes deducted at source or make instalment payments pay the Ontario Health Premium when they file their tax return.
How do self-employed individuals pay the Ontario Health Premium?
Self-employed individuals with taxable income of more than $20,000 are required to pay the Ontario Health Premium.
Individuals who remit tax instalments based on their previous years' net tax owing have the Ontario Health Premium reflected in their current instalments. Instalment interest may be charged if these instalment payments are insufficient.
Individuals determine the actual amount of the Ontario Health Premium on the Form ON428, Ontario Tax when they file their annual personal income tax returns.
Do members of the RCMP or the Armed Forces have to pay the Ontario Health Premium?
RCMP officers and members of the Armed Forces are not exempt from paying the Ontario Health Premium. Liability is based on residency in Ontario and having a taxable income greater than $20,000.
Do Aboriginal people have to pay the Ontario Health Premium?
Liability for the Ontario Health Premium is based on residency in Ontario and having a taxable income greater than $20,000. If an individual is a Status Indian and earns income on a reserve, that income is generally tax exempt and, therefore, would not be included in taxable income, on which the Ontario Health Premium is based. However, Status Indians who do not live and/or work on a reserve and who have taxable income over $20,000 would be subject to the Ontario Health Premium.
