Short answer: plan on paying for a cosmetic procedure with money that gets no tax break, read the terms of any financing offered at the provider's office, and know how a refund would work before you pay in advance. The rules below come from the IRS, the CFPB and the federal credit rules. This is general information, not tax or medical advice.
Cosmetic surgery and taxes
- IRS Publication 502 (for 2025 returns) says you generally can't include cosmetic surgery in medical expenses: any procedure directed at improving your appearance that doesn't meaningfully promote the proper function of the body or prevent or treat illness or disease (IRS Pub. 502).
- Its examples of procedures you generally can't include: face lifts, hair transplants, hair removal (electrolysis) and liposuction. Amounts paid to whiten teeth are not included either (IRS Pub. 502).
- The exception: cosmetic surgery necessary to improve a deformity arising from, or directly related to, a congenital abnormality, a personal injury from an accident or trauma, or a disfiguring disease. The publication's example is breast reconstruction after surgery to treat cancer (IRS Pub. 502).
- HSA and health FSA money follows the same line: qualified medical expenses are generally those that would qualify for the medical expense deduction (IRS Pub. 969).
Financing offered at the provider's office
The CFPB's May 2023 report on medical credit cards and financing plans found that these products, once used for elective procedures, now cover a wider range of care (CFPB). What it reported:
- Deferred interest promotions run for six to eighteen months. If any balance is left at the end, you are charged all the interest that would have built up since the purchase date (CFPB).
- The APR of the typical medical credit card was 26.99%, against a mean of about 16% for all general purpose credit cards at the time of the report (CFPB).
- People paid $1 billion in deferred interest on healthcare charges from 2018 to 2020, and between 2015 and 2020 they paid interest on 20% of healthcare purchases made with deferred interest cards or loans (CFPB).
How deferred interest compares with a payment plan or a loan is covered in the medical bill payment plan guide.
Before you pay upfront
The CFPB notes that patients may be charged for services they never received (CFPB). If you pay in advance for a procedure you could still cancel, get the cancellation and refund terms in writing first. How you pay matters if something goes wrong:
- On a credit card or other open-end credit, a charge for services not accepted by you, or not delivered as agreed, is a billing error under Regulation Z. Your written notice must reach the card issuer no later than 60 days after it sent the first statement showing the charge (12 CFR 1026.13).
- With a personal loan, the money is paid out to you, and the loan has to be repaid whether or not the procedure happens. A refund would come from the provider under its own terms.
Example: financing $5,000
This example is only for the math, not an average price for any procedure. It finances $5,000 over 24 months at the Federal Reserve's August 2026 averages: 11.90% APR for 24-month personal loans and 22.36% for credit card plans (G.19). Your rate depends on your credit and the lender.
| Option | Monthly payment | Interest | Total paid |
|---|---|---|---|
| Personal loan at 11.90% | $235.13 | $643.12 | $5,643.12 |
| Credit card at 22.36% | $260.28 | $1,246.72 | $6,246.72 |
$235.13 x 24 = $5,643.12, and $260.28 x 24 = $6,246.72. A loan origination fee would add to the loan cost; the origination fee calculator shows how.
Questions to ask the provider about financing
- Is this promotion no interest, or deferred interest, and what is the APR after it ends?
- When is my card or loan charged: at signing, or on the day of the procedure?
- If I cancel or reschedule, what is refunded, by when, and is any deposit kept?
- Does the quoted price include follow-up visits and any revision?
Related: paying for dental care, paying for hearing aids and paying for glasses, contacts and eye surgery.
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Sources
- IRS Publication 502: Medical and Dental Expenses
- IRS Publication 969: Health Savings Accounts and Other Tax-Favored Health Plans
- CFPB: Medical Credit Cards and Financing Plans (May 2023)
- 12 CFR 1026.13: Regulation Z, billing error resolution (open-end credit)
- Federal Reserve: G.19 Consumer Credit (released October 7, 2026), terms of credit, August 2026: credit card plans and 24-month personal loans
Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.