Updated Checked by the Tax-Services.ca editorial team How we check
The Ontario health tax is a yearly charge of up to $900 that you pay through your income tax. It’s officially called the Ontario Health Premium, it starts once your income passes $20,000, and most people never see it as a separate line because it’s built into the tax taken off your pay.
Who pays the Ontario health tax?
You do if you live in Ontario and your employment or pension income is above $20,000 a year. Tax status matters too. A First Nations person with a Status card pays it only on off-reserve income above that $20,000 line.
How you pay depends on how you earn. Employees and pensioners usually don’t do anything, because the premium is deducted from pay or pension and folded into the income tax figure on the stub. If nothing is withheld from your income, you pay the premium when you file your return. Self-employed people work it out on Form ON428, which goes in with the federal return.
How much is the Ontario health premium?
The amount steps up with taxable income and stops at $900. Each band works as “the lesser of a cap or a base plus a share of the income above the band’s start”.
| Taxable income | Premium | Reaches the cap at |
|---|---|---|
| $20,000 or less | $0 | Not applicable |
| $20,001 to $36,000 | 6% of income above $20,000, up to $300 | $25,000 |
| $36,001 to $48,000 | $300 plus 6% above $36,000, up to $450 | $38,500 |
| $48,001 to $72,000 | $450 plus 25% above $48,000, up to $600 | $48,600 |
| $72,001 to $200,000 | $600 plus 25% above $72,000, up to $750 | $72,600 |
| Over $200,000 | $750 plus 25% above $200,000, up to $900 | $200,600 |
Look at the last column. Most of the climbing happens in short stretches, so if you earn $55,000 or $100,000 you’re already sitting at the cap for your band. Inside those short stretches each extra dollar adds 25 cents of premium on top of ordinary income tax, which is why the marginal rate can jump for a moment.
In everyday terms, the top charge of $900 is $75 a month, and the $600 many mid-income earners pay is $50 a month. Not nothing, but nothing like the income tax line.
What does the premium look like on a real income?
Take a $25,000 salary. The income tax calculator shows taxable income of $24,785 and Ontario tax of $808.47. Of that, the premium is $287.10, so more than a third of the Ontario bill is the health charge.
At $60,000 the Ontario tax is $2,982.20 and $600 of it is premium, about 20%. At $100,000 the tax is $6,722.75 and the premium is $750, only 11%. So the premium weighs most on lower incomes, which is a fair point to raise if someone tells you Ontario taxes everyone the same. The take-home pay calculator puts these amounts into your yearly and monthly pay.
Picture Marcus, a part-time warehouse worker in Windsor with $30,000 of taxable income. That’s $10,000 above the $20,000 start, and 6% of it is $600, but the band caps at $300, so his premium is $300. A raise to $40,000 moves him into the next band: $300 plus 6% of the $4,000 above $36,000 is $240, so $540, which the $450 cap trims to $450.
What if your income changes during the year?
The premium follows your taxable income for the whole year, not each paycheque. If you start a better job in July or take parental leave in the fall, the final amount is settled when you file. Employees see it smoothed through withholding, so a small difference at tax time is normal. If you work two jobs, each employer may withhold as if it were your only one, and the true premium shows up on the return.
Is the Ontario health tax the same as OHIP?
People mix them up, and it’s an easy mistake. The premium isn’t a price for OHIP coverage, it’s part of your Ontario tax bill. We couldn’t confirm from official pages how the province allocates the money, so we won’t say what it pays for.
Mistakes and limits
A few things trip people up.
- The premium is not a deduction you can claim back. It’s part of the tax you owe.
- The bands use taxable income, but the province describes who pays with employment and pension income. Someone with only investment income may fall in a grey area, so check the Ontario page.
- Employers face a separate payroll charge for health. We haven’t verified its rates, so this page doesn’t cover it.
- Self-employed people don’t get automatic withholding, so set money aside. The self-employed tax calculator shows the combined bill, and the tax instalments calculator tells you if you owe payments during the year.
Want the pay stub view? The payroll deductions calculator lists what leaves each cheque.
Sources, and how we checked them
The $20,000 starting point, the $900 maximum and the payment rules come from the Government of Ontario’s health premium page for 2026. The band formulas match the Ontario data published for the premium, and the tax examples come from this site’s calculators, rechecked on 29 September 2026. Rules can change with a provincial budget, so look at the Ontario page before you file.
Frequently asked questions
How much is the Ontario health tax?
Between $0 and $900 a year, depending on taxable income. It's $0 at $20,000 or less and $900 above $200,600.
Is the Ontario health tax the same as the Ontario Health Premium?
Yes. The tax is the everyday name, and the Ontario Health Premium is the official one.
Do I pay it separately from my income tax?
Usually not. It's deducted from your pay or pension as part of the income tax figure, or paid with your return if nothing is withheld.
Do self-employed people pay it?
Yes. They work it out on Form ON428 and file it with the federal return.
Does it give me OHIP coverage?
No. It's part of your Ontario tax bill. We couldn't confirm from official pages how the province uses the money.
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