Health Spending Account Savings Calculator

Health Spending Account vs Medical Expense Tax Credit Calculator

Coastal HSA Value Calculator

Coastal HSA Value Calculator

Compare paying personally, increasing salary, or offering a Health Spending Account (HSA).

Pay Personally

$0
Estimated out-of-pocket cost after METC.

Equivalent Salary

$0
Estimated employer salary cost.

HSA Employer Cost

$0
Total HSA Employer Cost
$0
Equivalent salary cost: $0
Estimated savings: $0
Calculation details
Federal METC
Provincial METC
Total METC
Administration Fee (7%)
GST / HST
Premium Tax
Retail Sales Tax
Employer CPP (approx.)
Employer EI (approx.)
Estimated Marginal Tax Rate
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2026 estimates. HSA pricing: 7% administration fee. GST/HST applies only to the administration fee. Ontario includes 8% RST on claims and 2% Premium Tax on claims + admin fee.

Using the Calculator

Estimate how much you could save using a Canadian Health Spending Account (HSA) compared to paying medical expenses personally and claiming the Medical Expense Tax Credit (METC).

Results are estimates and based on 2026 tax year and results vary based on actual employee spending, income, province, tax rates, and plan setup. This calculator is for illustrative purposes only. Coastal HSA does not guarantee savings, and actual tax and employer/employee benefits may differ. Please consult a qualified tax professional for advice specific to your situation.

What Is the Medical Expense Tax Credit (METC)?

The Medical Expense Tax Credit (METC) is a non-refundable tax credit offered by the Canada Revenue Agency (CRA) for eligible medical expenses paid personally.

However, some Canadians are surprised to learn that the METC does not reimburse medical expenses from the first dollar spent. Under CRA rules, you can generally only claim the portion of eligible medical expenses that exceeds:

  • 3% of your net income, or
  • $2,890 for the 2026 tax year,

whichever is less.

This means many Canadians receive limited or no tax relief on smaller or moderate healthcare expenses. Unlike a Health Spending Account (HSA), the METC only provides partial tax relief rather than direct reimbursement of medical expenses.

The Medical Expense Tax Credit (METC) is a non-refundable tax credit, meaning it reduces income tax owing but does not directly reimburse your medical expenses dollar-for-dollar.

For 2026:

  • The federal METC credit rate is 15% (for 2026) of eligible medical expenses above the threshold amount.
  • You may also receive an additional provincial tax credit depending on your province.

HSA vs METC

Both Health Spending Accounts (HSAs) and the Medical Expense Tax Credit (METC) generally use the same CRA list of eligible medical expenses, including dental care, prescriptions, vision care, physiotherapy, and many other healthcare services. 

With a Health Spending Account, there is no 3% income hurdle or minimum expense threshold. Eligible medical expenses submitted through an HSA are reimbursed starting from the very first dollar.

With the Medical Expense Tax Credit (METC), expenses must first exceed the CRA threshold before any credit applies, and the tax credit is generally around 15% federally, plus a provincial credit depending on the province and tax year.

For many incorporated business owners and small businesses, an HSA can provide significantly greater overall tax savings compared to claiming medical expenses personally.

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