HSA for Incorporated Professionals in Canada: A Guide for Consultants, Accountants, and More

By Frontier Team•February 10, 2026•3 min read

If you're incorporated in Canada and paying yourself a T4 salary, you can set up a Health Spending Account to reimburse your health expenses with pre-tax corporate dollars. Instead of paying for dental, vision, prescriptions, and other medical costs out of pocket with after-tax money, your corporation covers them as a deductible business expense. The result is savings of 30-45% on every healthcare dollar you spend.

Who Is an "Incorporated Professional"?

You might not think of yourself this way, but if you run your own corporation for tax efficiency, you're an incorporated professional. This includes IT consultants, accountants, lawyers, dentists, physicians, realtors, financial advisors, engineers, and freelancers or contractors who set up a corporation to keep more of what they earn.

Most incorporated professionals are between 30 and 55, earning anywhere from $75,000 to $300,000 or more. If that sounds like you, keep reading.

Why HSAs Are Perfect for Incorporated Professionals

You already incorporated to optimize your taxes. A Health Spending Account is the natural next step.

Right now, you're probably paying for dental cleanings, glasses, prescriptions, physiotherapy, and mental health visits with your personal after-tax income. That means every $1,000 in health expenses actually costs you $1,400 to $1,800 once you account for personal income tax.

With an HSA, your corporation pays for those same eligible medical expenses directly. The reimbursement is 100% tax-deductible for the business and completely tax-free to you. No T4 slip, no personal tax hit.

The Key Requirement: T4 Salary

There is one important rule. You need to draw a T4 salary from your corporation, not just dividends. An HSA is structured as an employee benefit, so you must be a legitimate employee of your own corp. If you already pay yourself a salary (even a modest one alongside dividends), you qualify.

A Real Example

Sarah is an IT consultant billing $180,000 per year through her corporation. She sets up an HSA with a $3,000 annual limit. Over the year, her family's expenses add up:

  • Dental work: $1,200
  • New glasses for her and her husband: $800
  • Physiotherapy sessions: $600
  • Prescriptions: $400
  • Total: $3,000

Without the HSA, Sarah would need roughly $4,500 in pre-tax personal income to cover those same costs. With the HSA, her corporation deducts the full $3,000 plus a small admin fee. She keeps $1,500 in her pocket that would have otherwise gone to taxes.

Your Dependents Are Covered Too

An HSA doesn't just cover you. Your spouse and children under 18 (or under 25 if they're still in school) are eligible as well. That means your family's dental visits, eye exams, orthodontics, and prescriptions can all go through the plan.

Get Started with Frontier Health

Setting up an HSA for your corporation is straightforward. At Frontier Health, plans for solo incorporated professionals start at just $120 per year plus a small percentage per claim. Submit receipts through our app, and get reimbursed within 48 hours. Everything is structured to be fully CRA-compliant so you can focus on your work, not paperwork.

Simplify Your Business Health Benefits

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