LAB 04 — Health Spending
What do your family's medical bills really cost — paid personally, or through your corporation's HSA? Computed in your browser, nothing you enter leaves this page.
Assumes: incorporated owner; the alternative is paying personally out of additional salary taxed at your 2026 marginal rate (combined federal+provincial brackets; federal first rate 14%, AB 8% bracket, BC 5.6% new lowest rate — 2026 budgets). METC credited at the lowest combined rate on expenses above the lesser of 3% of net income or $2,890 (2026); Ontario surtax interaction ignored. HSA admin fee 8%; ON: 13% HST on the fee, 8% RST on claims, 2% premium tax on claims+fee; BC/AB: 5% GST on the fee. Educational estimate, not advice.
Why does the HSA usually win?
Paying a $3,000 dental bill personally means earning it first: at a 43.41% marginal rate an Ontario owner must draw about $5,301 of salary. Through an HSA the corporation pays the same bill for about $3,576 all-in — deductible to the company, tax-free to you.
Where to go from here: the full HSA guide — what qualifies, standalone vs add-on, and the one-person-corporation rules; or group benefits if you're building the whole plan.
Book a Tax Diagnostic
The first conversation is free — your situation, our method, and whether we fit. Complex files quote a planning fee up front: you'll know before we start.
// the only variable in this plan that gets more expensive every year is your age