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GST/HST

Massage therapy is now GST/HST exempt

By EverStone CPA · Updated

Registered massage therapists stop charging GST/HST on their services. That sounds like good news, and for clients it is. For the therapist it also means losing the GST/HST credits on business costs.

Quick answer: Budget 2026 proposes that massage therapy services supplied by a licensed or certified massage therapist (or one with equivalent qualifications where the profession is not regulated) are exempt from GST/HST, for supplies made after 5 November 2026. Exempt means no GST/HST is charged, and no input tax credits can be claimed on the costs of making those supplies.

A massage therapist working out the change? We update your GST/HST setup, your last return and your books for the exemption, as part of bookkeeping from $325 a month. Get My Fixed Quote
Announced, not yet law · Supplies made after 5 November 2026 (proposed) This has been announced but is not yet law. It can change or be withdrawn.

Exempt is not the same as zero-rated

Zero-rated supplies carry 0% GST/HST but still let the business claim back the GST/HST it pays on expenses. Exempt supplies carry no GST/HST and the business cannot claim it back. Massage therapy becomes exempt, the same treatment as physiotherapy and chiropractic.

Example

A BC therapist bills $8,000 a month. Before, she charged 5% GST ($400) and claimed back the GST on rent, supplies and equipment, say $150 a month. After the change she charges no GST, and the $150 is no longer recoverable, so it becomes a cost of doing business. Her clients pay less; her margin on the same fees is $150 a month lower.

What to do

  • Stop charging GST/HST on qualifying massage services provided after 5 November 2026.
  • Keep charging it on anything that is not a qualifying service, such as retail products.
  • If all your supplies are now exempt, ask whether you should stay registered, and what happens to credits you claimed on equipment.

More on running a practice: accounting for massage therapists.

Whether this applies to you depends on your year-end and structure; ask about your own situation and a CPA replies by email, usually the same business day, free.

Common questions

Do massage therapists still charge GST?+
Not on qualifying massage therapy services supplied after 5 November 2026, under the Budget 2026 proposal.
Can I still claim input tax credits?+
Not on costs of making exempt supplies. Credits remain available for costs related to any taxable sales, such as products.
Is massage therapy zero-rated or exempt?+
Exempt. Some early summaries said zero-rated; the budget documents say exempt.

Where this comes from

Budget 2026 was tabled on 5 November 2026. Figures on this page are from:

General information, not tax advice. Budget measures are proposals until enacted and can change. Before deciding anything, send an enquiry.

Federal Budget 2026: what changes for small business owners CRA penalties are going up: what Budget 2026 proposes Flat amounts you can claim without receipts from 2027