This is one of the most searched — and most misunderstood — GST/HST questions in Canadian health services.

Many registered massage therapists (RMTs) assume massage therapy is exempt from GST/HST because other regulated health services, such as chiropractic and physiotherapy, are exempt. That's not currently the case for massage therapy.

Getting this wrong can cost you money. You could end up owing GST/HST that you didn't collect, or miss input tax credits (ITCs) you're entitled to claim because your transactions were given the wrong tax treatment.

The Short Answer

RMT services are currently taxable for GST/HST purposes across Canada.

GST/HST exemptions for health services aren't based simply on whether a profession is regulated. The Excise Tax Act sets out which health services can qualify for exemption.

Massage therapy is regulated in several provinces, but that provincial regulation does not automatically make RMT services GST/HST-exempt. As of now, massage therapy has not been added to the federal list of exempt health-care services.

That distinction is important: provincial health-profession regulation and federal GST/HST treatment are separate systems.

What about Ontario?

Ontario RMTs are regulated by the College of Massage Therapists of Ontario under provincial law. That does not, by itself, create a GST/HST exemption.

So an Ontario RMT who is required to register for HST charges HST on taxable massage therapy services, just as an RMT in a GST province charges GST.

Is Massage Therapy Becoming GST/HST-Exempt?

There has been active advocacy for an exemption.

In 2024, Bill C-323 — a private member's bill originally dealing with psychotherapy and mental health counselling services — was the subject of an amendment proposing that massage therapy also be included. That amendment passed at one stage of the House process, but the bill did not ultimately become law.

The issue has continued beyond that bill. A federal petition presented to the House of Commons in January 2026 called for massage therapy to be added to the GST/HST exemption. In its response, the federal government stated that a formal request to exempt registered massage therapy had been received and was being reviewed by the Department of Finance.

As of the date this article was updated, RMT services remain taxable.

If that changes, your bookkeeping treatment will change too — including the way you handle ITCs.

When Do You Have to Register?

This is where the $30,000 small-supplier threshold matters.

For most businesses, you generally don't have to register for GST/HST while your worldwide taxable supplies remain at or below $30,000 under the CRA's small-supplier rules. You can also choose to register voluntarily before reaching the threshold.

There are two different ways you can exceed the threshold.

You exceed $30,000 in a single calendar quarter

If your taxable supplies exceed $30,000 in one calendar quarter, you stop being a small supplier on the supply that takes you over the threshold.

That means GST/HST applies to that supply and your effective registration date is no later than that date. CRA says you then have 29 days to register.

You exceed $30,000 over four consecutive calendar quarters

This works differently.

If you don't exceed $30,000 in any one calendar quarter, but your taxable supplies exceed $30,000 when measured over four consecutive calendar quarters, you generally stop being a small supplier at the end of the month following the quarter in which you exceeded the threshold.

Your registration becomes effective no later than your first taxable supply after that point.

That's why simply looking at your current year's total sales isn't enough.

You need to be watching your taxable revenue as you go.

If you're not sure where you stand, track your taxable revenue month by month and check the CRA's small-supplier rules. If you've already crossed the threshold, don't wait for your next year-end to deal with it.

What Counts Toward the $30,000 Threshold?

The small-supplier calculation is based on taxable supplies, including zero-rated supplies, subject to CRA's specific rules and exclusions. Since RMT treatment is currently taxable, treatment revenue generally forms part of the calculation.

For an RMT practice, that can include:

• Treatment revenue

• Retail product sales, such as oils or creams sold to clients

• Workshop or course revenue

Different supplies can have different GST/HST treatment, so don't assume every type of revenue in your practice is automatically treated the same way.

What's Usually Taxable for an RMT Practice?

Once you're a GST/HST registrant, taxable supplies generally include:

Treatment revenue
Your massage therapy services are taxable.

Retail sales
Products you sell to clients, such as massage oils, creams or other merchandise, may be taxable.

Workshops and courses
These can also be taxable, depending on what you're supplying.

Gift cards
Gift certificates have specific GST/HST rules. Generally, the sale of the gift certificate itself isn't treated as a taxable supply at the time it's sold. GST/HST is generally dealt with when the certificate is redeemed, based on what the customer purchases.

If your practice has multiple types of revenue, set them up separately in your bookkeeping so you can apply the correct tax treatment to each one.

Why This Matters for Your Books

Your GST/HST setup affects much more than the tax line on your invoice.

It affects:

• Your GST/HST liability account

• Your GST/HST return

• Your input tax credits

• The accuracy of your financial reports

• How much tax you actually owe when you file

If you're registered and making taxable supplies, you may be entitled to claim ITCs for eligible GST/HST paid or payable on purchases and expenses used to make those taxable supplies.

That can include things such as:

• Massage tables and equipment

• Linens and supplies

• Software subscriptions

• Office expenses

• Professional development

• Other eligible business purchases

But “potentially claimable” does not mean automatically claimable. You need to meet the CRA's requirements and keep the appropriate supporting documentation.

Set Up Your Bookkeeping Software Correctly

Your tax code is not just a setting on an invoice. It feeds into what happens later on your GST/HST return.

For taxable RMT treatment revenue, use the appropriate GST/HST tax code for your province and circumstances.

Don't use Exempt or Out of Scope simply because no tax was charged.

Those codes mean different things.

Exempt supplies are inside the GST/HST system but don't have GST/HST charged. Generally, you can't claim ITCs for purchases related to making exempt supplies.

Out of Scope transactions aren't part of the GST/HST system in the first place.

They may both show $0 tax on a transaction, but they are not interchangeable.

And if massage therapy is eventually made exempt, that would be a change from taxable to exempt treatment — not simply a reason to start coding the revenue as Out of Scope.

Common RMT GST/HST Mistakes

Assuming massage therapy is exempt because RMTs are regulated

Provincial regulation doesn't automatically create a federal GST/HST exemption.

Waiting until you register to worry about GST/HST

Your effective registration date matters. In some circumstances, GST/HST can apply to the transaction that takes you over the threshold even though you haven't completed the registration process yet.

Treating Exempt and Out of Scope as the same thing

They aren't.

The distinction matters for your GST/HST reporting and ITCs.

Missing eligible ITCs

Once you're registered, GST/HST paid on eligible business purchases may be recoverable through ITCs.

Keep your receipts and make sure the tax paid is recorded correctly.

Claiming 100% of mixed-use purchases

If a purchase is partly personal and partly business, you generally can't simply claim the entire amount as a business ITC. You need to determine the business-use portion and keep appropriate records.

FAQ

Is massage therapy HST exempt in Ontario?

No, not currently.

Massage therapy is a regulated profession in Ontario, but provincial regulation does not by itself create a federal GST/HST exemption. RMT services remain taxable unless and until the federal rules change.

Do I charge GST on massage therapy in BC?

If you're required to be registered for GST, yes.

BC has GST rather than HST, so a registered RMT generally charges the applicable 5% GST on taxable massage therapy services.

What about Alberta — is there HST on massage?

Alberta does not have a provincial sales tax, so a registered RMT generally charges the federal 5% GST on taxable massage therapy services.

If massage therapy becomes exempt, can I still claim ITCs?

Generally, no for purchases related to making exempt supplies.

That's an important part of the picture. An exemption would mean you no longer charge GST/HST on the service, but it would also affect your ability to recover GST/HST paid on inputs related to those exempt supplies.

What happens if I didn't collect GST/HST when I should have?

If GST/HST should have been collected, the fact that you didn't charge your client doesn't necessarily eliminate the amount owing to the CRA.

If you think you've crossed the registration threshold without registering, deal with it promptly. Calculate what should have been collected and speak with your accountant or the CRA about correcting the situation.

Do I need to register before I hit $30,000?

Not necessarily.

A small supplier can voluntarily register before reaching the threshold. Voluntary registration can be useful in some situations because a registrant may be able to claim eligible ITCs, including on qualifying business purchases.

But voluntary registration also creates GST/HST filing and collection responsibilities, so understand what you're signing up for before you register.

The Bottom Line

For now, RMT services are taxable for GST/HST purposes across Canada.

The fact that massage therapy is regulated doesn't make it exempt.

If your practice is approaching or has passed the $30,000 small-supplier threshold, don't wait until year-end to figure out your GST/HST setup. Get the registration timing right, use the correct tax treatment in your bookkeeping software, keep your supporting documents, and make sure you're capturing the ITCs you're actually entitled to claim.

This article is for educational purposes. GST/HST rules can depend on the specific supply, business structure and circumstances. If you're unsure how the rules apply to your practice, confirm your situation with the CRA or a qualified Canadian tax professional.

As your practice grows, you may also face the sole proprietor vs. incorporated decision. That's a separate decision worth working through once your bookkeeping and GST/HST setup are under control.

Sole Proprietor vs. Incorporate — find out here: Should I Incorporate?

Questions about how to set this up in your bookkeeping software? Ask Margot — the AI bookkeeping assistant built for Canadian small businesses.