Health Spending Accounts in Ontario: Keep More of What You Earn

If you're an incorporated professional or business owner in Ontario, a Health Spending Account (HSA) is one of the most efficient ways to have your corporation reimburse you for personal medical expenses.

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Hiveworks makes it simple to get started.

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What is a Health Spending Account?

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An HSA is a CRA compliant way to enable your corporation to reimburse you for eligible medical expenses. It’s 100% tax-free to you and fully tax-deductible to your business.

You pay for a health expense personally, submit your claim to Hiveworks, and your corporation reimburses you. That’s it. The process is digital, fast, and completely compliant.

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To understand the basics, see our What is a Health Spending Account page.

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Why Ontario Business Owners Use HSAs

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Ontario has some of the highest marginal tax rates in Canada. Paying for health, dental, or vision costs with after-tax dollars adds up fast.

Example:

If you're earning $115,000 annually and have $5,000 in health expenses, you could save you over $3,000 by using an HSA.

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Run your numbers with our HSA Savings Calculator.

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What’s Covered Under an HSA?

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In Ontario, your Health Spending Account can be used for services from a wide variety of licensed professionals. If the service is performed by a practitioner licensed in Ontario and is recognized under the CRA’s Medical Expense Tax Credit (METC), it qualifies.
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The full list of eligible practitioners in Ontario:

• Acupuncturist
• Audiologist
• Behaviour analyst
• Chiropodist
• Chiropractor
• Dental hygienist
• Dental technician or technologist
• Dentist
• Denturist, dental mechanic, denturologist
• Dietician
• Homeopath
• Kinesiologist
• Licensed or registered practical nurse
• Medical laboratory technologist
• Medical radiation technologist
• Midwife
• Naturopath
• Occupational therapist
• Optician
• Optometrist
• Pharmacist
• Physician
• Physiotherapist or physical therapist
• Podiatrist
• Psychological associate
• Psychologist
• Registered massage therapist or massage therapist
• Registered nurse (including nurse practitioner)
• Registered psychotherapist, legally qualified psychotherapist, or psychotherapist legally authorized
• Respiratory therapist
• Social worker
• Speech-language pathologist
• Surgeon
• Traditional Chinese medicine practitioner

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Ontario recognizes one of the most extensive ranges of licensed health professionals in Canada. With your HSA, everything from routine dental visits to specialized therapy services can be reimbursed, giving you confidence that the care you already rely on is fully covered.

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Over 100 medical related expenses are also covered.
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‍Some examples include:

• Dental care (cleanings, fillings, braces)
• Eye exams, glasses, contacts, laser eye surgery
• Prescription medications
• Orthotics and orthopedic footwear
• Group benefits premiums

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Explore the full list in our Eligible Expenses Guide.

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Example HSA Claim in Ontario

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Let’s say you visit the dentist and submit a $200 claim through your Hiveworks Health Spending Account.

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Here’s exactly what happens:

• You pay $200 out of pocket and submit your receipt through Hiveworks
• Hiveworks reviews and approves your claim
• Your corporation is invoiced for the claim amount plus applicable Ontario taxes (8% RST + 2% Insurance Premium Tax)
• You’re reimbursed the full $200, tax-free

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Ontario Taxes on HSA Claims

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In Ontario, provincial taxes apply to all Health Spending Account reimbursements because they’re considered insured health benefits.

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Here’s what your corporation pays:

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• The out-of-pocket amount you spent: $200

• 8% Retail Sales Tax (RST) on the claim amount: $16
• 2% Insurance Premium Tax on the claim amount: $4

Total invoiced: $220

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These taxes are required by the province and apply to all HSA providers. Your corporation deducts the full $220 as a business expense, and you keep the full $200, tax-free.

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See How HSAs Work for the full process.

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Built for Ontario Corporations

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Hiveworks is built for incorporated individuals across Ontario who want an affordable, compliant way to manage personal medical costs.

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Our platform makes it easy to:

• Set your own annual limit (up to $15,000)
• Add your spouse and dependants
• Submit multiple claims at once
• Get reimbursed through direct deposit
• Download reports at tax time

Everything is handled securely and online. No paperwork. No per-claim fees. One annual price.
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Am I Eligible?

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Eligibility is straightforward. Take a moment to review the eligibility details.

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Already Have Group or Spousal Benefits? Your HSA Still Helps

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Many group or spousal benefit plans only cover a portion of eligible health expenses. They also come with caps, exclusions, and co-pays.

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An HSA lets your corporation reimburse you for what’s not covered:

• The portion of dental, vision, or therapy costs left unpaid
• Expenses that exceed your plan’s annual maximums
• Services excluded entirely by your plan (like braces, laser eye surgery, orthotics, or acupuncture)

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Learn more about Combining an HSA with Group Benefits or Spousal Benefits and HSAs.

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Flat Annual Fee. No Surprises.

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With Hiveworks, you pay one simple annual fee, with no per-claim admin charges.

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Claim up to $15,000 per year, and include your spouse and dependants at no extra cost.

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There are no monthly fees, no tiered plans, and no hidden costs.
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Just simple, transparent pricing.

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Get Started

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You can only claim expenses incurred after your HSA start date, so don’t wait.

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Incorporated business owners across Ontario are already using Hiveworks to keep more of their income.

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Open an HSA in Minutes or Contact Us if you have questions.