The Ontario Health Premium doesn’t work like a flat tax, and it doesn’t scale in a straight line. It rises in steps as your taxable income moves through different thresholds, Two people earning the same salary can pay different premiums if their taxable income differs due to deductions or adjustments. At $95,000 salary, you’re far enough into the upper ranges that the premium becomes noticeable — but the exact amount depends on how your income interacts with those thresholds, not just the salary itself.
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✅ 2026 Tax Data Verified — This guide reflects current CRA payroll rules and Ontario tax thresholds.
Why the Health Premium changes at $95,000
The Health Premium changes at a $95,000 salary because this income falls inside Ontario’s $72,000–$200,000 premium tier. Anyone whose taxable income lands in this range pays a fixed annual premium of $750, which is the second‑highest level in the system. Since a $95,000 salary typically produces taxable income well above the $72,000 threshold, it automatically triggers the $750 premium for the year.
How the premium affects your take‑home pay
The Ontario Health Premium is taken gradually throughout the year, spread across each paycheque rather than deducted all at once. Your employer includes it inside the regular income tax withholding, so you won’t see a separate line for “Health Premium” on your pay stub. Instead, your total tax deduction is slightly higher each pay period, and the size of that increase depends on which premium tier your taxable income falls into.
Self-employed vs. full-time: when do you pay?
T4 employees have the Ontario Health Premium taken gradually throughout the year because their employer withholds it as part of regular income tax deductions. Self‑employed workers don’t have that monthly withholding, so they typically pay their entire annual Health Premium when they file their personal tax return. The premium is calculated the same way for both groups — the only difference is when the payment happens.
Use the Ontario take‑home calculator to see your total taxes, including any Health Premium that applies to a $95,000 salary.