In its 2004 May 18 Budget, the new provincial government proposed a further mechanism for funding health care in Ontario: the Ontario Health Premium (OHP), based upon an individual's taxable income. The OHP, which is a new tax, will be established through amendments to the provincial Income Tax Act and will be reflected on employee pay effective 2004 July 01 as a component of income tax withheld. Consistent with government direction to employers, no separate line item will appear for the OHP.

The rates to be implemented for all employees are as follows:

The Employer paid Employer Health Tax (EHT), which was introduced in 1989, and the Fair Share Health Care levy, which is an income surtax applied to Ontario residents earning more than $52,315, both remain in effect.

Click here for further information about the Ontario Health Premium.