Can you buy groceries with HSA card?

Health Savings Accounts (HSAs) offer valuable tax advantages for medical expenses, allowing account holders to contribute pre-tax dollars and withdraw funds tax-free for qualified healthcare costs. As grocery prices continue to rise, many people wonder, "Can you buy groceries with HSA card?" This guide explores the rules around using your HSA card for food purchases in 2025 and clarifies what you can and can't buy with your HSA funds.

Can you buy groceries with HSA card? The basic rules

The straightforward answer: Generally, no. According to current IRS regulations, regular grocery purchases are not considered qualified medical expenses and therefore cannot be paid for with your HSA card or funds.

HSAs are specifically designed to cover medical expenses as defined by the IRS in Publication 502. These typically include costs like doctor visits, hospital stays, prescription medications, and medical equipment. For a comprehensive list of what's covered, see our guide to HSA-eligible medical expenses. Everyday groceries—even healthy food—are considered ordinary living expenses, not medical expenses.

If you use your HSA to pay for groceries or other non-qualified expenses, you'll face significant financial consequences:

• The amount spent becomes subject to regular income tax
• If you're under 65, you'll also pay an additional 20% penalty tax
• You'll need to report these non-qualified distributions on your tax return

When can you buy groceries with HSA card? Medical exceptions

While you generally cannot buy regular groceries with your HSA card, there are limited exceptions where specific food items might qualify:

Medically necessary foods with a prescription

If a doctor has prescribed specific foods to treat a diagnosed medical condition, those items might qualify for HSA reimbursement. Examples include:

• Gluten-free foods for celiac disease
• Special dietary products for severe allergies
• Specific nutritional formulas for metabolic disorders
• Medical foods for conditions like PKU (phenylketonuria)

Requirements for medical necessity

For food to qualify as a medical expense, you'll need:

1. A letter of medical necessity or prescription from your healthcare provider
2. Documentation that the food treats a specific medical condition
3. Proof that the food serves a medical purpose beyond ordinary nutrition
4. Receipts showing the purchase of the prescribed items

It's important to note that the cost difference between special foods and regular alternatives may be the only allowable expense. For example, if gluten-free bread costs $6 and regular bread costs $3, only the $3 difference might qualify.

Common misconceptions about what you can buy with HSA card

There are several misconceptions about what you can buy with your HSA card, especially regarding food purchases:

Misconception: All healthy foods qualify

Some people believe that "healthy" grocery items like organic produce or nutritional supplements automatically qualify for HSA reimbursement. This isn't true—even health-promoting foods are considered regular living expenses unless specifically prescribed for a medical condition.

Misconception: FSAs can be used for groceries

The article mentions that Flexible Spending Accounts (FSAs) might offer more flexibility for grocery purchases. This is incorrect—FSAs follow similar rules to HSAs regarding qualified medical expenses and generally cannot be used for regular groceries. To understand the differences between these accounts, check out our HSA vs. FSA comparison guide.

Misconception: Over-the-counter supplements are always covered

While some vitamins and supplements may be HSA-eligible with a letter of medical necessity, most over-the-counter nutritional products are not qualified expenses without a prescription and specific medical purpose.

Alternatives for grocery assistance

Since HSA funds generally can't be used for groceries, consider these alternatives:

Supplemental Nutrition Assistance Program (SNAP)

For eligible low-income individuals and families, SNAP provides benefits to purchase food at authorized retailers. Visit the USDA SNAP website for eligibility requirements and application information.

Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)

WIC provides nutritional support for pregnant women, new mothers, and young children, including vouchers for specific healthy foods.

Local food banks and assistance programs

Many communities offer food pantries, meal programs, and other resources for those needing grocery assistance.

What can I buy with my HSA card? Smart uses

Instead of trying to buy groceries with your HSA card, here's what you can legitimately purchase and how to use your HSA strategically:

Medical products and services you can buy with your HSA card

Your HSA card can be used to purchase a wide variety of healthcare items and services, including:

• Prescription medications and some over-the-counter drugs
• Medical equipment and supplies (bandages, crutches, etc.)
• Vision products (glasses, contact lenses, solutions)
• Dental treatments and orthodontics
• Copays and deductibles for doctor visits
• Diagnostic services and lab fees
• Mental health services and treatments

Using your HSA card for these qualified expenses maximizes the tax advantages of your account.

Save for future healthcare needs

HSA funds never expire and can be carried over from year to year. By keeping money in your HSA, you build a financial cushion for future medical expenses.

Invest your HSA funds

Many HSA providers offer investment options. With long-term investing, your HSA can grow substantially, providing more funds for healthcare costs in retirement. When choosing an HSA, look for accounts with strong investment options—our guide to the best HSA accounts can help you find the right one.

Indirectly free up money for groceries

By using HSA funds for eligible medical expenses, you can free up more of your regular income and budget for grocery purchases.

Frequently asked questions about what you can buy with HSA card

Can you buy groceries with HSA card at any store?

While your HSA card may work at grocery stores that have pharmacies or sell medical supplies, only qualified medical items purchased at these stores are eligible expenses. Regular groceries cannot be purchased with your HSA card, regardless of where you shop.

What happens if I accidentally buy groceries with my HSA card?

If you mistakenly use HSA funds for groceries, you should contact your HSA administrator immediately. You may be able to return the funds to your account or pay the taxes and penalties on the non-qualified withdrawal.

Can meal delivery services for medical recovery be HSA-eligible?

Possibly. If a doctor prescribes meal delivery as part of recovery from surgery or treatment for a specific condition, these costs might qualify. Always get a letter of medical necessity and keep detailed records.

Are special diet foods HSA-eligible?

Most diet foods are not HSA-eligible, even if recommended by a doctor for general health. However, foods specifically prescribed to treat a diagnosed medical condition might qualify with proper documentation.