HSA for Trades: Electricians, Plumbers, and Contractors in Canada

By Frontier Team•February 10, 2026•4 min read

If you run an incorporated trades business in Canada and pay yourself a T4 salary, you can set up a Health Spending Account to reimburse your health expenses with pre-tax corporate dollars. For tradespeople -- electricians, plumbers, HVAC techs, carpenters, welders, and general contractors -- this is especially valuable because the physical demands of your work often mean higher healthcare costs.

Why Trades Workers Need This More Than Most

Trades work is hard on the body. Years of lifting, bending, kneeling, climbing ladders, and working in tight spaces add up. Back pain, knee problems, shoulder injuries, and repetitive strain are common across every trade. That means regular visits to physiotherapists, massage therapists, and chiropractors -- none of which are covered by provincial health insurance.

Without an HSA, you are paying for all of this out of pocket with after-tax personal income. With an HSA, your corporation covers these costs as a deductible business expense, and the reimbursement is completely tax-free to you.

What Tradespeople Actually Claim

Here are the eligible medical expenses we see most often from trades workers:

  • Physiotherapy, massage, and chiropractic -- for back, knee, and shoulder issues from years on the job
  • Orthopaedic shoes and custom inserts -- essential when you are on your feet all day on concrete
  • Braces and supports -- knee braces, wrist supports, back belts
  • Dental -- cleanings, crowns, and emergency work
  • Prescriptions -- including pain management medications
  • Vision -- safety glasses with prescription lenses
  • Mental health -- therapy and counselling

Your spouse and dependent children are covered under the same plan.

If You Are Incorporated, You Likely Already Qualify

Many tradespeople incorporate their business for tax purposes. If you already pay yourself a T4 salary from your corporation -- even a modest one alongside dividends -- you qualify for an HSA immediately. There is no minimum income and no approval process.

Tax Savings Example

Say you set an annual HSA limit of $4,000 and your expenses look like this:

  • Physiotherapy and massage: $1,400
  • Orthopaedic inserts: $500
  • Dental for the family: $1,200
  • Prescriptions: $400
  • Knee brace: $500
  • Total: $4,000

Without the HSA, you would need $5,600 to $7,200 in pre-tax personal income to cover those same costs. With the HSA, your corporation deducts the full $4,000. That is $1,600 to $3,200 back in your pocket every year.

How It Compares to Union Plans -- or No Coverage at All

If you are a union member, you may have a health plan through your local. But many independent tradespeople are not unionized, which means no coverage at all. Even union plans come with fixed premiums, limited coverage categories, and caps that do not always match what you actually need.

An HSA covers anything the CRA allows -- which is much broader than most union or group plans. And because it is pay-as-you-go, you only pay when there is an actual expense. No premiums during slow months.

Offering an HSA to Your Crew

If you have apprentices, journeymen, or labourers on your payroll, an HSA is one of the simplest benefits you can offer. There are no monthly premiums to worry about -- you only pay when someone submits a claim. It is fully deductible for your business and tax-free to your team. In a tight labour market where good tradespeople are hard to find, a health benefit helps you attract and keep the people you need.

Get Started With Frontier Health

At Frontier Health, setting up an HSA for your trades business takes about 10 minutes. Submit receipts through our app, get reimbursed within 48 hours, and everything stays CRA-compliant. No setup fees, cancel anytime.

Simplify Your Business Health Benefits

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