Province Guide

Health Spending Account British Columbia

Potential annual savings on $10k expenses

$11,505

Tax rate

53.5%

Health Spending Account for British Columbia Businesses

British Columbia business owners can significantly reduce their health costs with a Health Spending Account. With a combined marginal tax rate of up to 53.5%, British Columbia entrepreneurs save substantially by using pre-tax corporate dollars for medical expenses instead of after-tax personal income.

Why British Columbia Businesses Choose HSAs

Traditional health insurance in British Columbia is expensive and inflexible:

  • Annual premiums of $3,000-$8,000+ per person
  • Restrictive coverage with deductibles and co-pays
  • Use-it-or-lose-it policies
  • Annual increases regardless of claims

With a Frontier Health Spending Account:

  • No premiums - Pay only when you have expenses
  • 100% tax-deductible for your corporation
  • Tax-free reimbursements for you and your family
  • Flexible coverage for dental, vision, prescriptions, therapy, and more

Tax Savings for British Columbia Business Owners

Based on British Columbia's combined marginal tax rate of 53.5%:

  • $5,000 in expenses saves you approximately $5,753
  • $10,000 in expenses saves you approximately $11,505

This means for every dollar you spend on health expenses through your HSA, you save 53.5 cents compared to paying with after-tax personal income.

Who Can Use an HSA in British Columbia?

HSAs are available to:

  • Incorporated business owners (sole proprietors are NOT eligible)
  • Employees of incorporated businesses
  • Family members (spouse, dependent children)

If you're self-employed but not incorporated, you may want to consider incorporating to access HSA benefits.

What Can You Claim in British Columbia?

HSAs cover all CRA-eligible medical expenses, including:

  • Dental: Cleanings, fillings, crowns, orthodontics
  • Vision: Eyeglasses, contacts, laser eye surgery
  • Prescriptions: All prescription medications
  • Therapy: Physiotherapy, massage, mental health
  • Medical devices: CPAP machines, mobility aids
  • And many more eligible expenses

Getting Started in British Columbia

  1. Sign up at Frontier HSA (takes 5 minutes)
  2. Set your annual budget per person
  3. Submit claims when you have medical expenses
  4. Get reimbursed within 2-3 business days

No setup fees. No monthly premiums. Cancel anytime.

Calculator

Tax Savings in British Columbia

See how much you could save on health expenses with an HSA.

$2,0002,301

Traditional

$4,301

With HSA

$2,000

$5,0005,753

Traditional

$10,753

With HSA

$5,000

$10,00011,505

Traditional

$21,505

With HSA

$10,000

$15,00017,258

Traditional

$32,258

With HSA

$15,000

*Based on 53.5% combined marginal tax rate

HSA Benefits

100% Tax Deductible

All HSA expenses are deductible business expenses

No Premiums

Only pay when you actually use healthcare

Covers Everything

Dental, vision, prescriptions, therapy & more

Fast Reimbursement

Get your money back in 2-3 business days

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Ready to save on health expenses in British Columbia?

Set up your Health Spending Account in 10 minutes. Start saving on taxes immediately.

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CRA-compliantNo setup fees