Victoria, BC – September 15th, 2025 – Coastal Health Spending Accounts (HSA), a trusted provider of flexible, tax-advantaged employee health benefits in Western Canada, is proud to announce its official expansion into Ontario and Atlantic Canada, effective October 1, 2025. Coastal HSA Expands Into Ontario marks an exciting new chapter in the company’s mission to make healthcare spending more efficient and accessible nationwide.
After years of success across Western Canada, Coastal HSA is now bringing its innovative health spending account solutions to businesses and employees in new provinces, helping them manage healthcare expenses in a tax-efficient way.
Coastal HSA Expands Into Ontario & Atlantic Canada
“Expanding into Ontario and Atlantic Canada is a major milestone for Coastal HSA,” said Founder – Sam Froese. “ Employers across the country are looking for flexible and cost-effective ways to support their teams’ health and well-being, and we’re thrilled to bring our proven solutions to more Canadians.”
This post will explain:
- What changes with the expansion
- Key differences in tax treatment in Western Canada, Ontario, and Atlantic provinces
- An example showing $1,000 of health spending.
What’s New with Expansion
Coastal HSA Expands Into Ontario and Atlantic Canada, bringing its trusted Health Spending Account solutions to more businesses nationwide. Coastal HSA will begin accepting employers located in Ontario, New Brunswick, Nova Scotia, Newfoundland & Labrador, and Prince Edward Island on October 1st, 2025.
Coastal HSA will begin accepting employers located in Ontario, New Brunswick, Nova Scotia, Newfoundland & Labrador and Prince Edward Island on October 1st, 2025.
Tax Treatment Across Provinces
Coastal HSA Expands Into Ontario with a focus on transparency and compliance. The expansion also takes into account provincial tax rules. The tax treatment of HSAs differs depending on location of the employee:
| Province / Region | Tax on Claim Amounts | Premium / Insurance Tax | GST/HST on Admin Fee | Notes |
|---|---|---|---|---|
| Western Canada (BC, AB, SK, MB, Territories) | None | None | 5% GST on admin fee | Only the admin fee is taxed; claims are tax-free for employees. |
| Ontario | 8% RST on claims | 2% Premium Tax on claim + admin fee | 13% HST on admin fee | Layered taxes make Ontario slightly higher-cost for employers. |
| Atlantic Canada (NS, NB, NL, PE) | None | None | HST on admin fee (15% NB/NL/PE; 14% NS in 2025) | Only HST applies on the admin fee. |
Coastal HSA Expands Into Ontario and adapts its systems to handle regional variations in tax collection, ensuring smooth operations for employers.
Example: $1,000 HSA Claim
| Region | Claim Reimbursed | Admin Fee (6%) | Provincial Taxes | GST/HST on Admin Fee | Total Employer Cost |
|---|---|---|---|---|---|
| Western Canada and North | $1,000 | $60 | None | $3.00 | $1,063.00 |
| Ontario | $1,000 | $60 | $80 RST + $21.20 Premium Tax | $7.80 | $1,169.00 |
| Atlantic Canada | $1,000 | $60 | None | $9.00 (NB/NL/PE) $8.40 (NS) | $1,069.00 (NB/NL/PE) $1,068.40 (NS) |
Note: Employees always receive the full $1,000 tax-free; employer costs vary by province.
About Coastal HSA
Coastal HSA Expands Into Ontario and Atlantic Canada on October 1, 2025, marking an exciting new chapter for businesses and employees across the country. With flexible, tax-efficient health spending accounts and transparent administration, Coastal HSA continues to make employee benefits simple, accessible, and valuable — no matter where your team is located.
For more information, visit coastalhsa.ca.
Read More: A Journey Through The History Of Health Spending Accounts In Canada
