Medical expenses in Canada aren’t a straight deduction. They work as a non-refundable tax credit, and there’s a threshold you need to cross before you see any benefit. A lot of people either don’t bother claiming because they think their expenses are too small, or they claim things that don’t qualify and get reassessed later. Here’s how it actually works.
Last updated: April 2026
How the Medical Expense Tax Credit Works
You can claim eligible medical expenses on your personal tax return, but only the amount that exceeds the lesser of 3% of your net income or $2,759 (2025 threshold, indexed annually).
The credit is calculated at 15% federal. Provincial credits add more on top.
Quick Example
| Your Situation | Amount |
| Net income | $80,000 |
| 3% of net income | $2,400 |
| Total medical expenses | $5,000 |
| Eligible amount ($5,000 – $2,400) | $2,600 |
| Federal credit (15% x $2,600) | $390 |
| Plus provincial credit | ~$130-$260 |
| Total tax savings | $520 – $650 |
Tip: The lower-income spouse should claim the medical expenses. Why? Because 3% of a lower income means a lower threshold, which means more of your expenses become claimable.
What You Can Claim
The list of eligible expenses is long. Here are the most common ones:
Commonly Claimed
- Prescription medications (not over-the-counter, must need a prescription)
- Dental work (fillings, crowns, braces, dentures)
- Eyeglasses and contact lenses
- Laser eye surgery
- Physiotherapy, chiropractic, and massage therapy (if prescribed by a doctor)
- Psychologist and therapist fees
- Hearing aids
- Insulin and diabetes testing supplies
- Wheelchair and mobility aids
- Ambulance fees
- Private health insurance premiums (the portion you pay, not your employer’s share)
Often Missed (But Eligible)
- Travel expenses for medical treatment: If you travel more than 40 km one-way to get medical care not available locally, you can claim vehicle expenses or public transit fares
- Gluten-free food (celiac disease): The incremental cost above regular food, with a medical certificate
- Air conditioning: If required for a medical condition, with a doctor’s certificate
- Tutoring services: For a person with a learning disability, if certified by a practitioner
- Service animals: Costs of maintaining a guide dog or other service animal
- Home renovations for accessibility: Ramps, widened doorways, bathroom modifications for someone with a mobility impairment
- Fertility treatments (IVF): Including medications and procedures
What You Can’t Claim
- Over-the-counter medications (vitamins, supplements, Tylenol) unless prescribed
- Cosmetic surgery (unless medically required due to disease, injury, or congenital abnormality)
- Gym memberships (even if your doctor recommends exercise)
- Hot tubs or swimming pools (even with a doctor’s note)
- Teeth whitening
- Hair transplants
The 12-Month Claiming Period
You don’t have to use the calendar year. You can pick any 12-month period that ends in the tax year you’re filing. This is a legitimate planning tool.
For example, on your 2025 return, you could claim expenses from July 2024 through June 2025 if that gives you a better total. You just can’t overlap with a period you already claimed.
This matters if you had a big expense early in the year. You might get a better result by shifting the 12-month window.
Claiming for Dependants
You can claim medical expenses you paid for:
- Your spouse or common-law partner
- Your children under 18
- Dependants (parents, grandparents, siblings, etc.) who depend on you for support
For dependants other than your spouse and minor children, there’s a separate calculation with a different threshold and a maximum claimable amount.
Keep Your Receipts
CRA can ask for documentation at any time. Keep:
- Pharmacy receipts showing the prescription, amount, and pharmacy details
- Receipts from dental offices, optometrists, and other practitioners
- Insurance statements showing what was covered and what you paid out-of-pocket
- Doctor’s certificates for any expenses that require a prescription or certification
Only claim the amount you actually paid out-of-pocket after insurance reimbursement. If your plan covered 80%, you can only claim the 20% you paid.
Frequently Asked Questions
Are medical expenses tax deductible in Canada?
Not exactly. They’re a tax credit, not a deduction. The eligible amount (expenses minus the threshold) is multiplied by 15% federal plus your provincial rate to calculate the tax reduction. It’s a credit against your tax owing, not a reduction of your taxable income.
Is there a maximum I can claim for medical expenses?
No maximum for yourself or your spouse. For other dependants, there’s a cap that changes annually (around $7,999 for 2025). But for the main claim on your return, there’s no upper limit.
Can I claim medical marijuana?
Yes, if it’s prescribed by a medical practitioner and purchased from a Health Canada licensed producer. You need a medical document from your practitioner. Recreational cannabis doesn’t qualify.
Which spouse should claim medical expenses?
The one with the lower net income. The 3% threshold is based on net income, so a lower income means a lower floor, which means more of your expenses become eligible for the credit.
Not Sure What Qualifies?
CRA’s full list of eligible medical expenses is worth checking if you have unusual expenses. And if you’ve been paying significant medical costs and haven’t been claiming them, let us know. We can review prior years and see if there’s money to recover.