Medicare Premiums and Taxes by Province 2020
Medicare Premiums and Taxes by Province
In the past, most Canadians paid a premium to be eligible for basic medicare. That finally ended in January 2020, when the premium was eliminated in BC. All Canadian provinces have instead instituted employer payroll taxes, individual taxes based on income or fund medicare through general revenue. Here is a brief summary by province:
British Columbia
• NDP government eliminated monthly health care premiums for individuals and families
• introduced an employer-paid tax on payroll over $500,000 per year or $1.5 million for charitable and non-profit employers
• prior to the elimination of premiums, CUPE paid premiums on behalf of employees in BC; payments were a taxable benefit reported on income tax filing
Alberta
• Premiums eliminated in 2009; funded through general revenue
Saskatchewan
• No premiums or employer health tax; funded through general revenue
Manitoba
• No premiums for insured health services
• Health and Post Secondary Education Tax Levy on employers with payroll over $1.25 million annually
Ontario
• Ontario Health Premium paid through income tax by individuals with taxable income higher than $20,000 per year to a maximum of $900
• If the premium paid is reimbursed of the premium by an employer, it is considered a taxable benefit
• Employer Health Tax on payroll higher than $490,000 per year
Quebec
• No premiums for insured health services
• Employer contribution to Health Services Fund (Fonds des services de santé); rates vary based on payroll and sector
New Brunswick
• No premiums for insured health services; funded through general revenue
Nova Scotia
• No premiums for insured health services; funded through general revenue
Prince Edward Island
• No premiums for insured health services; funded through general revenue
Newfoundland and Labrador
• No premiums for insured health services; funded through general revenue
• Employer Health and Post Secondary Education Tax on payroll over $1.3 million