Why do some RMTs say their services are HST-exempt?

There is widespread confusion in the profession because massage therapy is regulated in Ontario under the Massage Therapy Act, 1991, and the CMTO registers therapists — similar to how physiotherapists and chiropractors are regulated. Those professions are HST-exempt. However, the tax exemption is not automatic for all regulated health professions. Massage therapy is not named in Schedule V, Part II of the Excise Tax Act, which is the source of the exemption. Until Parliament amends the Act to include massage therapy, RMT services remain taxable.

Is there a bill to make RMT services HST-exempt?

Not currently in force. Bill C-323 from the 44th Parliament did not become law, and Parliament's own LEGISinfo page marks it as historical information from a prior session. Future federal legislation could still change the rule, but RMT services remain taxable as of July 2026.

Do I have to charge HST on my RMT treatments?

Yes, once you are required to register or have voluntarily registered. The $30,000 small-supplier test is based on taxable supplies, including RMT services, over a single calendar quarter or the previous four consecutive calendar quarters. If you are below that threshold and not registered, you do not charge HST.

Can an RMT claim input tax credits on clinic expenses?

Yes. Unlike the situation if RMT services were exempt, registered RMTs can claim input tax credits (ITCs) on business expenses related to their taxable services — treatment supplies, equipment, rent, software, and other operating costs. This partially offsets the cost of HST registration and remittance.

Do I charge HST on massage oil or supplies I sell to clients?

Yes. Physical products sold at your clinic — massage oils, lotions, foam rollers, heat packs, or any retail items — are taxable at 13% HST. Both your services and product sales are taxable supplies once you are registered.

Is Massage Therapy HST-Exempt in Ontario?

The Short Answer

No — RMT services in Ontario are not HST-exempt. Massage therapy is not listed in Schedule V, Part II of the Excise Tax Act, which is the federal law that creates the HST exemption for certain health care services. Despite being a regulated profession in Ontario, massage therapists must charge 13% HST on their services once they are required to register under CRA’s small-supplier timing rules.

This is a common and costly misconception in the profession. RMTs who assume they are exempt and don’t register — or who fail to charge HST on taxable services — can face CRA assessments for uncollected HST plus interest and penalties.

The Full Explanation

Why the Confusion Exists

Physiotherapists, chiropractors, occupational therapists, speech-language pathologists, and several other regulated health professionals in Ontario are HST-exempt. Their services are listed in Schedule V, Part II of the Excise Tax Act. Massage therapy is a regulated profession in Ontario — therapists are registered with the College of Massage Therapists of Ontario (CMTO) under the Massage Therapy Act, 1991 — so it is reasonable to assume the same exemption applies.

It does not. The tax exemption requires an explicit listing in Schedule V, and massage therapy has not been added. The distinction is a legislative gap, not a reflection of the clinical value of the services.

The Legislative Status

There has been federal advocacy to change this. The key developments:

The RMTAO and CRMTA (national association) have lobbied for years to have massage therapy added to the Schedule V exemption
In 2024, Bill C-323 was discussed as a potential legislative vehicle, but Parliament’s LEGISinfo page now treats it as historical information from the prior 44th Parliament
The Department of Finance has confirmed massage therapy is now regulated in the required five provinces and that a formal exemption request is under review — but it has not concluded the criteria are met, and no exemption has been enacted
As of July 2026, no amendment adding massage therapy to Schedule V, Part II has become law

Until Parliament amends the Excise Tax Act, RMT services remain taxable.

What This Means for Your Practice

If your revenue is under $30,000: You are a small supplier. You are not required to register for HST, and you cannot charge HST on your services. Keep tracking your revenue — most growing practices cross this threshold.

If your taxable supplies exceed $30,000: Registration timing depends on how the threshold is crossed. If you exceed $30,000 in a single calendar quarter, your effective registration date is no later than the supply that pushed you over. If you exceed $30,000 over four or fewer consecutive calendar quarters, CRA says you stop being a small supplier at the end of the month after the quarter in which you exceeded the threshold, and you register from the first taxable supply after that date. All RMT service revenue counts toward this threshold — unlike exempt professions where only non-exempt revenue is counted.

Once registered: You charge 13% HST on each treatment, collect it from clients, and remit it to CRA on your filing schedule (typically quarterly). The upside of being taxable — unlike exempt professions — is that you can claim input tax credits (ITCs) on your business expenses. HST paid on treatment supplies, equipment, rent, and software all become recoverable ITCs.

The Extended Health Insurance Question

Many clients submit massage receipts to extended health benefits for reimbursement. Your receipt should accurately reflect whether HST was charged. If you are registered and charging HST, the receipt should itemize the service fee and the HST separately. Do not show HST on receipts if you are not registered — collecting HST without being registered creates its own compliance problem.

Multi-Therapist Clinics

In a clinic with multiple practitioners, HST treatment depends on each practitioner’s registration status and profession:

A CMTO-registered RMT’s services: taxable at 13% HST
A registered physiotherapist’s services: HST-exempt
A registered chiropractor’s services: HST-exempt

Each practitioner’s revenue is tracked separately for HST purposes. If your clinic employs a mix of exempt and non-exempt practitioners, your bookkeeping must clearly separate service revenue by practitioner.

What This Means for Your Clinic

For RMTs, the most important steps are:

Know your revenue threshold — track cumulative taxable revenue across rolling four-quarter periods
Register on time — use CRA’s single-quarter and rolling four-quarter timing rules; delayed registration means CRA can assess you for uncollected HST back to the date you should have registered
Configure your billing software — Jane App, Cliniko, and similar platforms can apply HST to invoices once you are registered
Claim your ITCs — being taxable is not all bad; recover HST on eligible business expenses
Watch for legislative changes — a future budget bill or tax amendment could change the exemption rules

Wellspring Accounting handles HST registration, compliance, and filing for RMT practices across Ontario. See our massage therapy accounting services, or read our bookkeeping guide for Ontario wellness clinics.