Canadian Life & Health Insurance Facts // 2024 Edition 26
Insurers' Tax Contributions
I N D U S T R Y I N D E T A I L
Canadian life and health insurers contributed $11.2 billion in taxes
In 2023, insurance companies' contributions to Canada's tax base included $4 billion paid to
the federal government and $7.2 billion paid to provincial and territorial governments. Of the
total, $6.4 billion was borne directly by insurers, and $4.8 billion was collected and paid as
provincial sales taxes on life and health insurance and as employees' share of payroll taxes.
The industry's 2023 total tax contribution
to all levels of government in Canada was
nearly twice its share of Canada's GDP.
In 2023, taxes borne totalled $6.4 billion, up a third, driven by an
80% increase in corporate and capital taxes.
of total tax contributions
are premium-based taxes*
Federal
taxes
Provincial/Territorial
taxes
Distribution of total tax contributions
* The industry's contribution is especially high for health insurance, accounting for about 50% of value-add generated. See Piling On -
How Provincial Taxation of Insurance Premiums Costs Consumers, C.D. Howe Institute.
Nearly 50%
$4.0B $7.2B
Taxes borne: $6.4B Taxes collected: $4.8B
Corporate income tax &
federal capital tax: $2.7B
Provincial premium tax:
$2B
Payroll & other taxes
borne: $1.7B
Federal payroll taxes
collected: $1.6B
Provincial retail sales tax
on premiums: $3.2B
Taxes borne are taxes paid by
insurers directly to governments.
Taxes collected are taxes that
insurers collected from customers
and employees and paid to
governments on their behalf.
$
11.2B
2023 total tax
contributions
