An analysis of the data from the Ontario longitudinal study of aging was carried out to investigate the associations between self-reported income and perceived health status, using cross-tabulations and logistic regression models. Reported income, educational level, and smoking status were associated with perceived health status. Reported income was associated with perceived health status independently of the effects of education and smoking. The data also indicate that changes in income are related significantly to changes in perceived health status. A reduced income was associated with a worsening of health and a weak relationship was apparent between increased income and better health. The analyses further suggest that income changes precede health changes. The possible mechanisms through which an income change may lead to health changes are discussed.