Benji VisserIf you are considering LASIK in Canada, the first thing to know is that it is an eligible medical expense under the CRA's current medical-expense list. If you have a valid Health Spending Account (HSA) that is set up as a Private Health Services Plan (PHSP), LASIK can usually be reimbursed through that plan, subject to the plan terms and available balance.
That is the practical upside: instead of paying for LASIK entirely out of pocket and only claiming the unreimbursed amount on your personal tax return, a valid HSA/PHSP can reimburse the eligible cost tax-free to the employee and as a business expense to the employer.
This guide explains how that works, what the CRA actually says, and which parts still depend on your plan documents.
The short answer
Yes, LASIK is an eligible medical expense in Canada. The CRA's current eligible-medical-expenses list includes laser eye surgery, and the list does not attach a prescription requirement to that item.
If your HSA is a valid PHSP, LASIK can generally be reimbursed through the plan. The reimbursement is normally not taxable to the employee, and the employer can generally deduct the reimbursement as part of employee benefits, assuming the plan qualifies and the expense is eligible.
There is still one important limit: the plan itself. A PHSP/HSA is not an unlimited reimbursement account. Your claim is still subject to the plan balance, the plan's reimbursement rules, and any deadlines in the plan documents.
Why insurance often does not help much
Many Canadian vision plans provide modest coverage for glasses or contacts and limited or no coverage for laser eye surgery. Coverage is plan-specific, so the only reliable answer is your own policy booklet or insurer.
The useful distinction is this:
| Typical group insurance | HSA / PHSP | |
|---|---|---|
| LASIK | Often limited or excluded | Can be reimbursed if eligible and within plan terms |
| Glasses / contact lenses | Often capped | Can be reimbursed if eligible and within plan terms |
| Claim process | Insurer rules | PHSP/HSA administrator and plan rules |
In other words, insurance is about what the policy covers. An HSA/PHSP is about whether the expense is eligible under the CRA rules and your plan.
What a Health Spending Account is
A Health Spending Account is an employer-funded benefit that reimburses eligible medical expenses. In tax terms, it is usually structured as a Private Health Services Plan.
The CRA's PHSP rules are what matter here. A valid PHSP is not the same thing as insurance, and it is not a blank cheque. The arrangement still has to satisfy the CRA's PHSP conditions, and the claim still has to fit the plan.
The practical flow looks like this:
- The business sets up a PHSP/HSA and assigns a benefit amount for a covered employee or owner-employee.
- The person incurs an eligible medical expense, such as LASIK.
- The person submits the clinic receipt to the plan administrator.
- The administrator checks the claim against the plan terms and the CRA rules.
- If the claim is approved, the reimbursement is paid out.
- If the plan qualifies as a PHSP, the reimbursement is generally non-taxable to the employee and generally deductible to the business.
What CRA says about LASIK
The CRA's current eligible-medical-expenses page explicitly lists laser eye surgery as an eligible medical expense. The page also shows that the item is eligible without a prescription requirement on the current list.
That means the key documents are the receipt and any supporting records you would normally keep for a medical-expense claim. The CRA can ask for additional supporting documents later, so keep the paperwork even if your HSA administrator only needs a basic invoice to process the claim.
What documents you should keep
Keep the clinic invoice or receipt. It should clearly show the amount paid, the date, the patient name, and the service provided. CRA guidance says receipts should also show the reason for the payment and, if applicable, the practitioner who prescribed or gave the service.
For LASIK, there is no CRA prescription requirement on the current list. But you should still keep the receipt and any extra paperwork the clinic or administrator gives you.
What is usually covered
LASIK is the headline item, but it is not the only refractive procedure people ask about. PRK and SMILE are also forms of laser eye surgery, so they fit the CRA's laser-eye-surgery category.
Other procedures, such as ICL or refractive lens exchange, can be more fact-specific because the way the clinic bills the procedure matters. If the charge is for an eligible medical service, it may qualify, but you should confirm the billing and have your plan administrator review it before assuming coverage.
Premium versions of laser eye surgery, such as custom or wavefront-guided procedures, are usually best treated the same way as the underlying laser eye surgery for HSA purposes. If the clinic separates out a non-medical add-on, confirm that charge before submitting it.
How the tax treatment works
If your HSA is a valid PHSP, reimbursement for LASIK is generally tax-free to the employee and generally deductible to the business.
If you are claiming the expense personally instead, LASIK can be claimed on the medical-expenses line of your tax return for the year it was paid, subject to the CRA's medical-expense rules. For the 2025 return, the federal threshold is the lesser of 3% of your net income or $2,834.
The personal claim is a non-refundable tax credit, not a deduction. It reduces tax owing, but it does not erase the full cost the way a valid PHSP/HSA reimbursement can.
Can you claim glasses and LASIK in the same year?
Yes, if both expenses are eligible and both are not already reimbursed elsewhere. There is no CRA rule that forces you to choose one or the other.
The main limit is the one in your plan. If your HSA balance covers both, you may be able to submit both. If it does not, the unreimbursed portion may still be claimable on your personal return if it otherwise qualifies.
What about spouse and dependants?
That depends on your plan. Many PHSPs cover the employee plus a spouse/common-law partner and eligible household dependants, but the exact wording comes from the plan documents.
If you are trying to use an HSA for a spouse or dependant, check the plan terms before you book the procedure or submit the claim.
Frequently asked questions
Does LASIK need a prescription for HSA reimbursement?
No. The CRA's current medical-expense list shows laser eye surgery as eligible and does not attach a prescription requirement to that item.
Can I claim LASIK on my personal tax return?
Yes, if the expense was paid by you and was not reimbursed. For the 2025 return, claim it on the medical-expenses line of your return and apply the federal threshold of the lesser of 3% of net income or $2,834.
Can I claim LASIK and glasses in the same year?
Yes, if both are eligible and both are actually paid by you or your spouse/common-law partner and not reimbursed elsewhere.
Can I use my HSA for both eyes?
Yes. The CRA does not set a per-eye cap for laser eye surgery. Any limit comes from your plan balance and plan terms.
What documents do I need?
Keep the receipt or invoice, proof of payment, and any supporting documents your administrator asks for. CRA guidance says receipts should show the amount, the date, the patient name, and the reason for the payment.
Can I claim an older LASIK expense?
Only if your plan terms allow it. Many HSAs are limited to expenses incurred during the current benefit year or another specific submission window, so check the plan rules before assuming a retroactive claim will work.
Is LASIK taxable if my corporation pays for it?
If the HSA is a valid PHSP and the expense is eligible, the reimbursement is generally non-taxable to the employee. The employer treatment still depends on the plan qualifying as a PHSP.
CRA references
- CRA eligible medical expenses list
- CRA medical expenses, including PHSPs
- CRA PHSP page
- CRA common adjustments: medical receipts
- Income Tax Folio S1-F1-C1, Medical Expense Tax Credit
This guide is for informational purposes only and does not constitute tax, legal, or medical advice. If you are in Quebec or your plan has unusual wording, confirm the details with your advisor or administrator before you rely on it.