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).
News and Insights on Tax