This document has been updated on October 24th, 2017 and reflects the state of the Law, including draft amendments, at that date.

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 $450,00021 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


21Amount indexed every five years since 2014. However, the exemption is not available to private sector employers with a payroll of more than $5M (including related corporations).