NuvioLife
Employer tool · 2026 tax year

The Canadian HSA tax savings calculator

See what the same medical expense costs through payroll versus through a Health Spending Account, at 2026 combined federal and provincial marginal tax rates.

  • All 10 provinces and 3 territories
  • Verified 2026 marginal rates
  • No sign-up, no email

Your numbers

Sets the marginal tax rate used to gross up the salary route.

Dental, vision, prescriptions, paramedical — what the plan reimburses per person in a year.

NuvioLife plan

Through salary or bonus

After-tax dollars delivered
$15,000
Income tax at 29.65%
$6,322
Total payroll cost$21,322

Through an HSA

Medical expenses reimbursed
$15,000
Claims admin fee (10%)
$1,500
Total HSA cost$16,500

Estimated annual savings

$4,822

22.62% less than covering the same expenses through payroll.

$482 per employee, per year.

Assumes a 29.65% combined federal and provincial marginal rate — the 2026 rate at $85,000 of taxable income, representative for this band. Your exact rate differs.

The math

How the comparison works

01

Gross up for tax

To leave an employee with $1,000 after tax through payroll, an employer has to pay $1,000 plus the income tax that comes off the top. At a 40% marginal rate, that means paying about $1,667.

02

Reimburse through the HSA

The same $1,000 expense reimbursed through a Health Spending Account costs $1,000 plus the claims administration fee. The employee receives the full amount tax-free under CRA private health services plan rules.

03

Compare the totals

Both routes are deductible business expenses, so the difference is straight cost: the tax the payroll route burns against the flat fee the HSA route charges.

Assumptions

What this estimate includes

  • 01Tax year 2026. Rates are combined federal plus provincial or territorial marginal rates on ordinary income, including surtaxes and basic-personal-amount clawbacks where they apply. Each income band uses the rate at one representative income, not your exact rate.
  • 02CPP and EI are excluded on both sides. Adding employer payroll contributions would make the salary route more expensive, so the estimate is conservative.
  • 03Both routes are treated as fully deductible business expenses, so the comparison is pre-tax employer outlay. HSA reimbursements reach employees tax-free under CRA private health services plan rules.
  • 04The HSA route includes NuvioLife's claims administration fee, and on the Business plan, the per-employee monthly subscription. No other platform costs are added.
  • 05Quebec treats employer contributions to a private health services plan as a taxable benefit for provincial income tax. This calculator does not model that, so Quebec results are somewhat overstated.
  • 06The calculation applies one uniform medical spend to every employee. Teams with very different spend levels can run the calculator once per group.

Rates verified 2026-07-14 from: TaxTips.ca 2026 marginal tax rate tables · CRA federal income tax rates

This calculator is an estimate, not tax or accounting advice. Confirm the numbers with your accountant before restructuring compensation.

Walk it through with us

Walk through the three paths with us.

We'll look at your team size, ages, and current plan, then map you to the path that fits, and coordinate the insurance side with your broker (or refer one if you don't have one yet).

  • 01Map your headcount and demographics
  • 02Match to the right path (or combo)
  • 03Loop in your broker, or refer one
  • 04Wallet stack fully deployed in 4 days
Prefer the phone?
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  • Works alongside your existing broker
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