Ontario Health surcharge

It's based on Taxable Income, if it's over $20,000. Some of my clients have plenty of donations and/or medical expenses, yet they still end up paying the Ontario Health Premium, as donations and/or medical expenses do not affect the amount of taxable income.

More detailed info below:

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.

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.

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.