Section 12 – Social Programs and Benefits
Employer Health Tax – Ontario
In Ontario, employer health tax contributions are 0.98% when the total annual payroll is $200,000 or less. The rate varies from 1.101% to 1.829% for employers with payrolls from $200,001 to $400,000, and is 1.95% for other employers.
However, private sector employers are entitled to a health tax exemption on the first $490,00024 of remuneration. The exemption has to be shared by associated employers. The contribution rate is determined based on an employer’s total payroll before the exemption.
24 Since 2019 ($450,000 in 2018). Amount indexed every five years. However, the exemption is not available to private sector employers with a payroll of more than $5M (including related corporations).
This document is up to date as of August 1, 2019 and reflects the status of legislation, including proposed amendments at this date.