Is a wellness spending account taxable if I use it for gym equipment instead of medical expenses?

Often, yes — using a wellness spending account for gym equipment rather than genuinely eligible medical expenses tends to get less favourable tax treatment. Many employer wellness accounts are actually structured as a taxable allowance in the first place, precisely because CRA treats general wellness and fitness spending, like gym equipment, differently from expenses that qualify under the kind of arrangement CRA treats as a private health services plan.

Whether your specific spending ends up taxable or not depends heavily on how your particular plan is structured, not just on what you personally chose to buy with it. Some wellness accounts are set up narrowly enough that only qualifying medical-type expenses are eligible at all, while others are broader and allow fitness and general wellness purchases but are taxed accordingly as a benefit. If your plan allows gym equipment as an eligible category, that's a signal the account may be treated as a taxable allowance overall, or that gym-equipment claims specifically fall outside its non-taxable portion.

Because this really comes down to how the specific plan is built, checking your plan's terms — and how your employer reports amounts used for fitness versus medical purposes — is more useful than assuming a general "wellness account" label means everything you buy through it is automatically tax-free.