Premium tax is a tax on insurance premiums in respect of people living in Ontario and property situated in Ontario. The tax is administered by the Ontario Ministry of Finance.
Who pays Ontario insurance premium tax?
Along with insurance companies, premium tax is collected and paid to the province by:
- administrators of funded and unfunded benefit plans, also referred to as Ontario uninsured benefit arrangements
- anyone buying insurance placed with an insurer not licensed in Ontario
- reciprocal or inter-insurance exchanges.
Generally, insurance corporations operating a business through a permanent establishment in Ontario pay premium tax on all premiums.
Learn more about the rules in section 74 of the Corporations Tax Act
What are the insurance premium tax rates?
|Type of Insurance
How do I register for an insurance premium tax account?
Before you can register for an insurance premium tax account, you need an Ontario corporation number.
Get an Ontario corporation number
Then, you can request an insurance premium tax account from the Ministry of Finance.
Download and complete the registration form [PDF – 576 KB]
If you have any questions please call the ministry at 1 866 ONT-TAXS (1 866 668-8297).
How do I file my insurance premium tax return and make payments?
The Ministry of Finance will mail you a personalized tax return during the last month of your tax year. If you need a return for tax years before 2011, please contact the ministry at 1 866 ONT-TAXS (1 866 668-8297).
Read on: How to complete your insurance premium tax return and schedules
You can file your return and make payments:
Note: Online filing is only available for tax years 2009 or later.
You can also make payments in person at your Ontario financial institution. Payments should be in Canadian funds and made payable to the Minister of Finance. Your identification number should be printed on the back of the cheque or money order.
If you use ONT‑TAXS online, you can elect to stop receiving paper returns by clicking the Change in Issuing Returns link.
A completed tax return and any supporting documents must be filed within six months after the end of your tax year.
Interest and/or penalty
If you have done the following on time: made your instalment payments, paid the balance of premium tax in full, and filed your tax return, you will not be assessed interest or penalty if there is a delay in processing your tax return.
More about interest rates
If you are entitled to a refund, it will be paid after your assessment is issued.
When will I receive my assessment?
An assessment will be mailed to you after your tax return is processed. If you have an outstanding balance on your account you will receive a monthly statement.
Estimated amount owing
If you do not file your tax return on time you may receive an assessment that has automatically estimated an amount of premium tax owing. Estimated amounts will be calculated based on the average of total premium tax assessed on up to the past six (6) filed tax returns excluding nil and credit tax returns.