Ontario Health Premium

The Ontario Health Premium was introduced in the 2004 Ontario Budget to help fund the additional investments in healthcare in Ontario. Each year, revenue from the Ontario Health Premium contributes approximately $3 billion to the health care system.

The Ontario Health Premium applies to individuals who are residents of Ontario on the last day of the taxation year with taxable income over $20,000 (line 260 of your income tax return). The Ontario Health Premium is deducted from employee pay and pension cheques through the personal income tax system administered by the Canada Revenue Agency under the existing tax collection agreement between Ontario and the federal government.

The actual amount of the Ontario Health Premium for the year is determined when you file your annual income tax return (see form ON428 Ontario Tax). The Ontario Health Premium range up to $900. Self-employed individuals who remit tax by instalments must include an estimated amount for the Ontario Health Premium.

The Ontario Health Premium is not linked to the Ontario Health Insurance Plan nor to an individual's eligibility to receive health care in Ontario.

If you would like to find out how Ontario Health Premium affects you, please view this chart.

Note: Effective with the January 1, 2011 edition, the Canada Revenue Agency no longer produces the Tables on Diskette. Going forward, the Canada Revenue Agency encourages employers to use the Payroll Deductions Online Calculator.