Are Health and Fitness Apps Eligible Under an HSA in Canada?

Are health and fitness apps eligible under an HSA in Canada?

The short answer? Generally, no. Most health and fitness apps, like Peloton, Calm, and MyFitnessPal, aren't eligible expenses under a Health Spending Account (HSA) in Canada. But there are exceptions worth knowing, and a better way to claim these expenses if your employer offers one.

Why the CRA Says No (Most of the Time)

A Health Spending Account is only non-taxable because it follows the Canada Revenue Agency's list of eligible medical expenses,  the same list used for the Medical Expense Tax Credit under the Income Tax Act. That list is built around treating or diagnosing a medical condition, not maintaining general wellness.

Fitness club fees, workout equipment, and wellness apps fall outside that list. The CRA has been clear that health club memberships and similar fitness expenses don't qualify as medical expenses and reimbursing them through an HSA can put the account offside with CRA rules.

When a Fitness or Health App Could Qualify

There's a narrow exception. If a licensed medical practitioner prescribes a medically necessary app, program, or piece of equipment as part of treating a diagnosed condition, such as a cardiac rehab app after a heart event, or a monitoring app tied to a prescribed treatment plan, the expense could qualify. This usually requires a Letter of Medical Necessity (LOMN) from the prescribing licensed practitioner confirming the app is medically necessary to treat that specific condition, not just supporting general health.

Apps that deliver a regulated health service, such as virtual therapy sessions with a licensed psychologist or telehealth consultations, are typically eligible as well. But that's because you're paying for the practitioner's service, not the app itself.

HSA vs WSA: Where These Apps Actually Belong

This is where a Wellness Spending Account (WSA) comes in. A WSA is employer-funded and can cover the broader wellness categories the CRA excludes from HSAs, including gym memberships, fitness equipment, and apps like Headspace, Calm, or Peloton. The trade-off: because these expenses fall outside CRA's medical expense definition, WSA reimbursements are treated as a taxable benefit and reported on your T4.

Many employers offer both an HSA and a WSA side by side for exactly this reason. Your health app is more likely to be reimbursable through the WSA side of your plan.

The Bottom Line

Before submitting a claim for a health or fitness app, check two things: whether a medical practitioner prescribed it for a diagnosed condition, and whether you have an HSA, a WSA, or both. If you're not sure which bucket an expense falls into, your plan's list of eligible items (available in the myHSA app) will tell you exactly what's covered before you spend.

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