Canada HSA Calculator

A TypeScript library for calculating tax savings from a Health Spending Account (HSA) for Canadian small businesses. Includes 2025 federal and provincial tax brackets for all provinces.

Try the live calculator at Frontier HSA

What is an HSA?

A Health Spending Account (also called a Health Care Spending Account or HCSA) lets Canadian incorporated businesses pay for medical expenses with pre-tax corporate dollars instead of after-tax personal income. This can save 25-50% depending on your province and income level.

Install

npm install @frontierhsa/canada-hsa-calculator

CLI

# Install globally
npm install -g @frontierhsa/canada-hsa-calculator

# Calculate savings: hsa-calc <income> <expenses> <province>
hsa-calc 100000 3000 ON

#   Canadian HSA Tax Savings Calculator
#   ===================================
#
#   Province:           Ontario (ON)
#   Annual Income:      $100,000.00
#   Medical Expenses:   $3,000.00
#
#   Tax Rates
#   ---------
#   Federal marginal:   20.50%
#   Provincial marginal:  9.15%
#   Combined marginal:  29.65%
#
#   Comparison
#   ----------
#   Without HSA:        $4,264.39 pre-tax income needed
#   With HSA:           $3,360.00 total business cost
#
#   SAVINGS:            $904.39/year

# Custom admin fee and plan fee
hsa-calc 85000 5000 BC --admin-fee 5 --plan-fee 450

# JSON output for scripting
hsa-calc 120000 2000 AB --json

Usage

import { calculate } from "@frontierhsa/canada-hsa-calculator";

const result = calculate({
  annualIncome: 100000,
  annualMedicalExpenses: 3000,
  province: "ON",
  adminFeeRate: 0.08,   // 8% admin fee
  annualPlanFee: 120,    // $120/year platform fee
});

console.log(result.savings);            // 905.32 — yearly tax savings
console.log(result.marginalTaxRate);    // 0.2965 — combined marginal rate
console.log(result.totalBusinessCost);  // 3360   — total HSA cost
console.log(result.breakEven);          // 284.62 — min expenses to save money

API

calculate(input)

Main function. Returns tax savings from running medical expenses through an HSA vs. paying out of pocket.

Input:

| Field | Type | Description | |---|---|---| | annualIncome | number | Annual pre-tax income | | annualMedicalExpenses | number | Annual medical expenses | | province | ProvinceCode | Province code ("ON", "BC", "AB", etc.) | | adminFeeRate | number | Admin fee rate as decimal (e.g., 0.08 = 8%) | | annualPlanFee | number | Annual platform fee in dollars |

Output (CalculatorResult):

| Field | Type | Description | |---|---|---| | savings | number | Total yearly tax savings | | marginalTaxRate | number | Combined federal + provincial marginal rate | | federalTaxRate | number | Federal marginal rate | | provincialTaxRate | number | Provincial marginal rate | | adminFee | number | Admin fee amount | | totalBusinessCost | number | Total cost through HSA | | requiredPersonalIncome | number | Pre-tax income needed without HSA | | annualPlanFee | number | Annual plan fee | | breakEven | number | Minimum expenses for HSA to save money |

Tax Rate Functions

import {
  marginalFederalTaxRate,
  marginalProvincialTaxRate,
  effectiveFederalTaxRate,
  effectiveProvincialTaxRate,
  PROVINCES,
} from "@frontierhsa/canada-hsa-calculator";

// Marginal rates (rate on the next dollar earned)
marginalFederalTaxRate(100000);                    // 0.205
marginalProvincialTaxRate(100000, PROVINCES.ON);   // 0.0915

// Effective rates (average rate across all income)
effectiveFederalTaxRate(100000);                    // 0.1734
effectiveProvincialTaxRate(100000, PROVINCES.ON);   // 0.0698

Tax Bracket Data

import { FEDERAL_TAX_BRACKETS, PROVINCES } from "@frontierhsa/canada-hsa-calculator";

// 2025 federal brackets
console.log(FEDERAL_TAX_BRACKETS);
// [
//   { threshold: 57375, rate: 0.15 },
//   { threshold: 114750, rate: 0.205 },
//   { threshold: 177882, rate: 0.26 },
//   { threshold: 253414, rate: 0.29 },
//   { threshold: Infinity, rate: 0.33 },
// ]

// All provinces
Object.keys(PROVINCES); // ["AB", "BC", "MB", "NB", "NL", "NS", "ON", "PE", "SK", "YT"]

Supported Provinces

| Code | Province | |---|---| | AB | Alberta | | BC | British Columbia | | MB | Manitoba | | NB | New Brunswick | | NL | Newfoundland and Labrador | | NS | Nova Scotia | | ON | Ontario | | PE | Prince Edward Island | | SK | Saskatchewan | | YT | Yukon |

How the Math Works

1. Marginal tax rate = federal marginal rate + provincial marginal rate for your income bracket
2. Without HSA: You need expenses / (1 - marginalTaxRate) in pre-tax income to cover medical costs
3. With HSA: You pay expenses + adminFee + planFee as a deductible business expense
4. Savings = what you'd need without HSA - what you pay with HSA

Example: $3,000 in medical expenses at a 29.65% marginal rate

• Without HSA: need $4,265 pre-tax income
• With HSA: pay $3,360 (expenses + 8% admin + $120 fee)
• Savings: $905/year

Development

npm install
npm test
npm run build

License

MIT - Frontier HSA