Overview

The health premium is paid by Ontario residents through the personal income tax system. Money collected through the tax helps fund Ontario’s health services.

The health premium ranges from $0 if your taxable income is $20,000 or less, to $900 if your taxable income is more than $200,600.

The health premium is not linked to OHIP and does not affect a person’s eligibility to receive health care in Ontario.

How is the premium paid?

You pay the health premium if you are a resident of Ontario and your employment or pension income is more than $20,000 a year. In most cases the premium is automatically deducted from your pay or pension. It is included as part of the income taxes deduction on your pay stub.

If you don’t have taxes automatically deducted from your pay or pension, the premium is paid when you file your annual personal income tax and benefit return with the Canada Revenue Agency (CRA).

If your income is $20,000 or less, you don’t need to pay the health premium.

People who are self-employed or pay income tax instalments

If you’re self-employed and making $20,000 or more a year you pay the premium as part of your return. Complete Form ON428 in your personal income tax and benefit return package and submit it to CRA with your tax return.

The premium is based on an individual’s taxable income. Regardless of whether someone is married, divorced, separated or single.

Those with higher health premiums may need to pay in instalments throughout the year. Instalment interest may be charged if the payments are not enough.

Learn more about how to file your tax return.

First Nations People as Status Indians

If you have a Certificate of Indian Status identity card, you are required to pay the premium if your taxable income for the year was generated off-reserve and is more than $20,000.

The health premium does not apply to income earned on a reserve. To learn more about the taxable status of income, please visit the Government of Canada’s website.

Seniors

If you’re a senior who receives a pension of more than $20,000 a year, check with your pension provider to verify the premium is being deducted automatically with other taxes.

If you receive income from sources that don’t deduct the taxes, you can request the health premium be automatically deducted from your:

  • pension, or
  • Old Age Security (OAS) and Canada Pension Plan (CPP) benefits

To have the premium deducted from your pension, complete form TD1ON and provide it to your pension provider.

To have it deducted from your Old Age Security (OAS) and Canada Pension Plan (CPP) benefits, complete form ISP-3520 and send it to Service Canada using the address provided.

For Employers

Employers can use the CRA’s payroll deductions online calculator and the payroll deductions formulas for computer programs to calculate the correct payroll deduction.

Payroll deductions, including the health premium, are calculated based on the province or territory where employees report to work. Read more about which provincial or territorial tax table you should use.

If you’re an employer, you can pay the health premium for your employees by increasing employee salaries, or reimbursing employees for the premium amount that needs to be paid. Payment of the premium by an employer is considered an employee benefit. The employee must include it as a taxable benefit when filing their income tax return.

Updated: August 16, 2021
Published: January 15, 2018