Benji VisserIf you have been told you need hearing aids, the first thing you probably looked up was the price. And the number you found likely made you pause. A single hearing aid in Canada costs anywhere from $2,000 to $6,000 or more, depending on the technology level. For a pair, you are looking at $4,000 to $12,000. Then you checked your insurance, expecting some relief, and found out your plan covers maybe $500 to $1,000 per ear -- every three to five years.
That gap between what hearing aids actually cost and what insurance will pay is one of the biggest out-of-pocket shocks in Canadian healthcare. And it hits at a particularly frustrating time: most people who need hearing aids are in their 40s, 50s, and 60s, right in the prime of their working lives, often running their own businesses.
But there is a way to pay for hearing aids with pre-tax dollars that most Canadians do not know about. A Health Spending Account (HSA) covers hearing aids in full, with no arbitrary caps per category. The reimbursement is tax-free for the person receiving it and 100% tax-deductible for the business funding the account.
This guide explains exactly how it works, who qualifies, what hearing-related expenses are covered, and how to submit your claim.
The short answer
Yes. Hearing aids are 100% eligible under a Health Spending Account in Canada. The Canada Revenue Agency (CRA) classifies hearing aids as an eligible medical expense under paragraph 118.2(2)(i) of the Income Tax Act, which covers devices prescribed by a medical practitioner for a patient's hearing. That means any expense that qualifies for the Medical Expense Tax Credit (METC) also qualifies for reimbursement through an HSA. Hearing aids have always been on that list. You purchase the hearing aids, submit the receipt, and get reimbursed by direct deposit.
One practical note: while the CRA does not require a prescription for hearing aids, getting a hearing assessment from an audiologist is the standard first step. The assessment identifies the type and severity of your hearing loss, which helps you get the right devices.
Why insurance barely covers hearing aids
This is the part that catches most people off guard. You pay into a group insurance plan expecting it to cover your health needs, and then when a major expense comes along, you discover the benefit barely makes a dent.
The typical group insurance plan in Canada covers $500 to $1,000 per ear for hearing aids, once every three to five years. Some plans offer a bit more, some a bit less, but that is the general range. When the hearing aids you need cost $3,000 to $6,000 per ear, that insurance benefit covers somewhere between 10% and 30% of the actual cost.
Here is what that looks like in practice:
| Actual cost | Typical insurance benefit | Your out-of-pocket gap | |
|---|---|---|---|
| One hearing aid (mid-range) | $3,000 - $4,500 | $500 - $1,000 | $2,000 - $3,500 |
| Pair of hearing aids | $4,000 - $12,000 | $1,000 - $2,000 | $3,000 - $10,000 |
| Replacement pair (after 4 yrs) | $4,000 - $12,000 | $1,000 - $2,000 | $3,000 - $10,000 |
| Hearing aid batteries (annual) | $100 - $300 | Sometimes covered | $0 - $300 |
| Hearing aid repairs | $200 - $500 per repair | Rarely covered | $200 - $500 |
The insurance model treats hearing aids like a small, occasional benefit. But they are not. They are an expensive, recurring necessity. The gap between what insurance pays and what hearing aids actually cost is often $3,000 to $10,000 -- and that gap repeats every three to five years when the devices need replacing.
An HSA has no such limitation because it is not insurance. It is a reimbursement account. If the CRA says the expense is eligible, the HSA covers it -- the full amount, not some fraction of it.
What a Health Spending Account is (and how it is different from insurance)
A Health Spending Account is an employer-funded benefit that reimburses medical expenses recognized by the CRA. It is set up as a Private Health Services Plan (PHSP), which is a specific structure defined under the Income Tax Act.
Here is the key difference from insurance: there is no insurance company involved. There are no premiums, no underwriting, no exclusion lists, no deductibles, no co-pays, and no annual caps per category. If the CRA says an expense is eligible, the HSA covers it.
The way it works:
- A business sets up an HSA and allocates a benefit amount per employee (or per owner, in the case of incorporated business owners).
- The employee incurs a medical expense -- hearing aids, dental work, physiotherapy, prescriptions, whatever it might be.
- The employee submits the receipt to the HSA administrator.
- The HSA administrator verifies the expense is CRA-eligible and processes the reimbursement.
- The employee receives the reimbursement by direct deposit. It is tax-free in their hands.
- The business deducts the reimbursement as a business expense. It is 100% tax-deductible.
There are no insurance claim forms to mail in and no waiting for an insurance adjudicator. You do not need to wonder whether your particular brand of hearing aid is "covered under your plan." If the CRA recognizes the expense, it is eligible. (The specific claims process depends on your HSA provider.)
For a more detailed comparison, see our guide on HSA vs insurance for Canadian small businesses.
Exactly what is covered for hearing under an HSA
One of the biggest advantages of an HSA over insurance is hearing coverage. Insurance plans typically cap hearing aid benefits at a small fixed amount and exclude most related expenses entirely.
An HSA covers every CRA-eligible hearing expense with no per-category cap. Here is a comprehensive list:
| Hearing expense | Typical insurance coverage | HSA coverage |
|---|---|---|
| Hearing aids (any technology level) | $500 - $1,000 per ear, every 3-5 years | Covered in full |
| Hearing aid batteries | Sometimes covered within hearing aid benefit | Covered in full |
| Hearing aid repairs | Rarely covered | Covered in full |
| Hearing aid fittings and adjustments | May be partially covered | Covered in full |
| Hearing tests / audiograms | Usually covered every 2-3 years | Covered every time, no cap |
| Cochlear implants | Varies by plan, often excluded | Covered in full |
| Bone conduction hearing devices (BAHA) | Rarely covered | Covered in full |
| Assistive listening devices (ALDs) | Not covered | Covered in full |
| FM systems / Roger systems | Not covered | Covered in full |
| Tinnitus maskers | Not covered | Covered in full |
| Ear molds and custom ear pieces | May be covered within hearing aid benefit | Covered in full |
| Audiologist consultations | Sometimes covered, limited visits | Covered in full, no cap |
| Hearing aid evaluation and assessment | May be partially covered | Covered in full |
The practical impact of this is significant. With insurance, you get a fixed dollar amount toward the hearing aids themselves and almost nothing for the related expenses. With an HSA, the hearing aids, the batteries, the repairs, the follow-up fittings, and the annual hearing tests are all covered. There is no "either/or" restriction and no combined cap.
For the full CRA reference on each of these expenses, visit our hearing aids expense page, hearing aid services expense page, and cochlear implant expense page.
How claiming hearing aids through an HSA works
The claims process for hearing aids through an HSA is straightforward. Here is the step-by-step:
Step 1: Get a hearing test (audiogram). Book an appointment with a licensed audiologist. They will perform a comprehensive hearing assessment, which typically takes 30-60 minutes. This audiogram establishes the type and severity of your hearing loss. The cost of the hearing test itself is also HSA-eligible.
Step 2: Get a recommendation. If the audiogram shows you need hearing aids, the audiologist will recommend the type and features appropriate for your hearing loss. While not a CRA requirement, this recommendation is a normal part of the process and helps your HSA administrator verify the expense.
Step 3: Choose and purchase your hearing aids. Work with your audiologist or a hearing aid clinic to select the right devices. This usually involves a fitting appointment where you try different models. Pay the clinic directly. Most clinics accept credit card, debit, or financing arrangements.
Step 4: Submit the receipt to your HSA. Log into your HSA portal or app, upload a photo of the receipt, and submit the claim. With Frontier HSA, you can do this from your phone in about 30 seconds. Keep the prescription on file in case it is requested during the claims review.
Step 5: Get reimbursed. Your HSA administrator reviews the claim, confirms it is CRA-eligible, and sends the reimbursement to your bank account by direct deposit. With Frontier HSA, this happens within 24 hours.
That is the entire process. With Frontier HSA, there is no waiting period before you can claim and no pre-approval step. If you have available balance in your HSA on the day of your purchase, you can submit the claim the same day.
What documents do you need?
Two things:
- A recommendation or assessment report from your audiologist. While the CRA does not require a prescription for hearing aids, your HSA administrator may ask for documentation showing the hearing aids were appropriate for your condition.
- The receipt from the hearing aid clinic or audiologist. It should show:
- The name and address of the clinic
- The name of the patient
- A description of the devices purchased (make, model, or type)
- The date of purchase
- The total amount paid
The prescription does not need to be submitted with every claim, but you should keep it on file. The HSA administrator may request it as part of the claims review.
The replacement cycle: why hearing aids are a recurring major expense
Here is something that makes hearing aids different from a one-time procedure like LASIK or dental implants: hearing aids need to be replaced every three to five years.
The devices wear out. The technology advances. Your hearing changes over time, often getting gradually worse, which means the devices that worked well three years ago may no longer be sufficient. The average lifespan of a hearing aid is four to five years before it needs to be replaced with a new one.
That means if you get your first pair of hearing aids at age 55, you are looking at:
| Age | Expense | Estimated cost |
|---|---|---|
| 55 | First pair of hearing aids | $5,000 - $10,000 |
| 59 | First replacement pair | $5,000 - $10,000 |
| 63 | Second replacement pair | $5,000 - $10,000 |
| 67 | Third replacement pair | $5,000 - $10,000 |
| 71 | Fourth replacement pair | $5,000 - $10,000 |
That is $25,000 to $50,000 over 15-20 years, with insurance covering maybe $2,000 to $4,000 of the total. The cumulative out-of-pocket cost is staggering.
This is where an HSA becomes particularly valuable. Because unused HSA balances roll forward (with Frontier HSA, they roll forward for one benefit year), you can plan for these recurring expenses. A business owner who allocates a consistent monthly amount to their HSA can build up the balance needed for each replacement cycle, and the full cost is covered with pre-tax dollars every time.
Provincial hearing aid programs
Several provinces offer hearing aid assistance programs, but they are often limited in scope and not a replacement for proper coverage.
What provinces typically offer:
- Ontario (ADP): The Assistive Devices Program covers up to 75% of the cost of hearing aids and related devices, including FM systems and some processor replacements. Coverage is for basic models and requires an authorized hearing health professional.
- British Columbia: The BC Employment and Assistance program covers hearing aids for income assistance recipients. There is no universal provincial hearing aid benefit.
- Alberta (AADL): The Alberta Aids to Daily Living program provides hearing aid benefits with no income requirements. AADL uses a cost-sharing model, with client costs capped at $500 per year per individual or family.
- Quebec (RAMQ): The Hearing Devices Program covers hearing aids for a broader range of residents than many realize, including children, adults with certain conditions, and seniors. Eligibility details are available on the RAMQ website.
- Other provinces: Most have some form of targeted hearing aid program, but the benefits are modest and often restricted to basic models.
The gap provincial programs leave:
Provincial programs are a safety net, not full coverage. They usually cover only basic hearing aid models. These basic models may not have features you need for work, like Bluetooth, noise reduction, or the ability to connect to your phone. If you spend time in meetings, on calls, or in noisy settings, a basic model may not be enough.
An HSA covers the full cost of whatever hearing aid your audiologist recommends, including premium models with advanced features. There is no restriction on the technology level, the brand, or the number of features. If it is prescribed for your hearing, it is eligible.
Who can use an HSA for hearing aids
HSAs are available to anyone who receives them as a benefit through an incorporated business. Here is who qualifies:
Incorporated business owners
If you own an incorporated business, you can set up an HSA for yourself, your spouse, and your dependents. This is the most common use case for hearing aids. As a business owner in your 40s, 50s, or 60s, age-related hearing loss is extremely common -- roughly one in three Canadians between 40 and 79 has some degree of measurable hearing loss. Your corporation pays the hearing aid reimbursement as a deductible business expense, and you receive it tax-free.
This is one of the most tax-efficient ways to pay for hearing aids in Canada. Instead of paying $8,000 for a pair of hearing aids with after-tax personal dollars, you pay with pre-tax corporate dollars. Depending on your tax bracket, that could save you $3,000 to $4,000 on a single pair.
Employees of companies that offer HSAs
If your employer offers an HSA as part of your benefits package, you can use it for hearing aids. The process is the same: get the prescription, purchase the hearing aids, submit the receipt, receive the reimbursement tax-free. Check with your employer or HR department to confirm you have an HSA and what your annual benefit amount is.
Sole proprietors with arm's-length employees
Sole proprietors (unincorporated self-employed individuals) cannot set up an HSA for themselves under current CRA rules. However, if a sole proprietor has arm's-length employees (employees who are not the owner or related to the owner), the sole proprietor can set up an HSA for those employees. The employees can then use the HSA for hearing aids and any other CRA-eligible expense.
For more detail on HSA eligibility for different business structures, see our guide on HSAs for sole proprietors.
Dependents -- including aging parents
If you have aging parents who are your dependents under the Income Tax Act, their hearing aids can be claimed on your HSA. This is a significant benefit that many business owners overlook. If your parent lives with you or depends on you financially and meets the CRA's definition of a dependent, their medical expenses -- including hearing aids -- are eligible for reimbursement through your HSA.
Who does NOT qualify
- Sole proprietors trying to set up an HSA for themselves (no arm's-length employee requirement met)
- Individuals who are not connected to an incorporated business or an employer that offers an HSA
- Contractors or freelancers working as unincorporated sole proprietors without employees
If you are a sole proprietor without employees, the Medical Expense Tax Credit (METC) on your personal tax return is your best option for tax relief on hearing aids. More on that below.
Are hearing aids tax deductible in Canada?
This is one of the most common questions people ask, and the answer depends on how you pay for them.
Through an HSA
Yes. If your corporation reimburses hearing aids through an HSA, the reimbursement is a 100% deductible business expense for the corporation. And the reimbursement is received tax-free by the employee. This is the most tax-efficient option.
For a $8,000 pair of hearing aids, the corporation deducts $8,000 as a business expense. The employee receives $8,000 tax-free. Compared to paying personally with after-tax income, this saves thousands of dollars depending on your marginal tax rate.
On your personal tax return (METC)
Yes, but with conditions. Hearing aids qualify for the Medical Expense Tax Credit on line 33099 (or line 33199 if claiming for a spouse or dependent). However, the METC only kicks in once your total eligible medical expenses exceed 3% of your net income (or a fixed threshold set by the CRA, whichever is lower). And even then, it is a non-refundable tax credit, not a deduction. It reduces the tax you owe, but it does not eliminate the full cost.
Disability Tax Credit (DTC)
If your hearing loss is severe enough that you are markedly restricted in your ability to hear even with hearing aids, you may also qualify for the Disability Tax Credit. The DTC is a separate non-refundable tax credit that can reduce your federal and provincial tax. To qualify, your doctor or audiologist must complete Form T2201, and the CRA must approve your application. The DTC does not reimburse the cost of hearing aids directly, but it provides additional tax relief.
HSA vs. METC vs. DTC
The HSA is almost always the best deal for the hearing aids themselves. With the METC, you pay for hearing aids with after-tax dollars and get a partial credit back at tax time. With an HSA, the corporation pays with pre-tax dollars and the employee receives the full amount tax-free. No waiting until tax time, no threshold to clear, no partial credit.
The DTC is a separate benefit that can be claimed in addition to either the METC or the HSA. If you qualify for the DTC, claim it regardless of how you pay for the hearing aids.
For a deeper comparison, see our guide on METC vs HSA.
Frequently asked questions
Are hearing aids HSA eligible in Canada?
Yes. Hearing aids are eligible under a Health Spending Account in Canada. They are classified as an eligible medical expense under paragraph 118.2(2)(i) of the Income Tax Act. The CRA does not require a prescription for hearing aids.
Does insurance cover hearing aids in Canada?
Most group insurance plans provide limited hearing aid coverage, typically $500 to $1,000 per ear every three to five years. This covers a fraction of the actual cost, which ranges from $2,000 to $6,000 per ear. The gap between insurance coverage and the real cost of hearing aids is one of the largest in Canadian healthcare.
Do I need a prescription to claim hearing aids on my HSA?
No. The CRA does not require a prescription for hearing aids. However, getting a hearing assessment from an audiologist is the standard first step when purchasing hearing aids, and your HSA administrator may ask for documentation showing the devices were appropriate for your hearing loss.
Can I claim hearing aid batteries and repairs on my HSA?
Yes. Hearing aid batteries, repairs, maintenance, and replacement parts are all CRA-eligible medical expenses. You can claim them through your HSA the same way you claim the hearing aids themselves. Submit the receipt and get reimbursed.
How much do hearing aids cost in Canada?
Hearing aids in Canada typically cost $2,000 to $6,000 per ear, depending on the technology level. A pair costs $4,000 to $12,000. Basic models with fewer features are at the lower end, while premium models with Bluetooth, rechargeable batteries, advanced noise reduction, and directional microphones are at the higher end. Most audiologists recommend mid-range to premium models for people who work in varied listening environments.
Can I claim hearing aids for my spouse or dependents?
Yes. If your spouse and dependents are covered under your HSA, their hearing aids are eligible for reimbursement. This includes dependent children who need hearing aids and, in some cases, aging parents who qualify as your dependents under the Income Tax Act. Check your HSA plan details to confirm who is covered.
Can I use my HSA for cochlear implants?
Yes. Cochlear implants and all related expenses -- the implant itself, the surgery, the external processor, mapping and programming appointments, and replacement parts -- are CRA-eligible medical expenses. They qualify under paragraph 118.2(2)(i) of the Income Tax Act. Visit our cochlear implant expense page for more details.
How often will I need to replace hearing aids?
Most hearing aids need to be replaced every three to five years. The devices wear out physically, the technology becomes outdated, and your hearing typically changes over time. Plan for this as a recurring expense. An HSA is particularly well-suited for this because you can build up your balance over time to cover each replacement cycle.
Can I claim hearing aids I already paid for?
It depends on when you paid. Most HSAs require that the expense was incurred during the current benefit year. If you purchased hearing aids before your HSA was set up, you generally cannot claim them retroactively. If you purchased them during the current benefit year but have not yet submitted the claim, you can submit it as long as you are within the claims submission window. Check with your HSA administrator for specific deadlines.
Are assistive listening devices HSA eligible?
Yes. Assistive listening devices (ALDs), FM systems, Roger systems, personal amplifiers, and similar devices are CRA-eligible. They qualify under the same section of the Income Tax Act as hearing aids. Visit our hearing aids and assistive listening devices expense page for the full list.
Is a hearing test (audiogram) HSA eligible?
Yes. Hearing tests and audiograms are CRA-eligible medical expenses, whether or not they result in a hearing aid prescription. They qualify as fees paid to a medical practitioner (audiologist) for diagnostic services. You can claim the cost of the hearing test through your HSA with no restrictions on frequency.
Can I combine insurance coverage with my HSA for hearing aids?
Yes. If your insurance plan covers a portion of your hearing aids, you can claim the remaining balance through your HSA. For example, if your hearing aids cost $8,000 and your insurance covers $2,000, you can claim the remaining $6,000 through your HSA. The HSA covers whatever your insurance does not.
CRA reference
Hearing aids and related hearing devices are eligible medical expenses under paragraph 118.2(2)(i) of the Income Tax Act, which covers amounts paid for aids to hearing. Related services such as audiologist consultations qualify under paragraph 118.2(2)(a) as fees paid to a medical practitioner for medical services.
For the full CRA reference, visit:
- CRA eligible medical expenses list
- Income Tax Folio S1-F1-C1, Medical Expense Tax Credit
- Frontier HSA hearing aids expense reference
- Frontier HSA hearing aid services expense reference
This guide is for informational purposes only and does not constitute tax, legal, or medical advice. Consult a qualified tax professional for advice specific to your situation.