The Medical Expense Tax Credit (METC) can save you hundreds or thousands of dollars if you have significant out-of-pocket medical costs. Many Canadians miss this credit because they do not realize how many expenses qualify; use the tax deductions checklist alongside this guide to avoid missing related claims.
How the Medical Expense Tax Credit works
You can claim eligible medical expenses that exceed the lesser of:
- 3% of your net income, or
- A set threshold (approximately $2,759 for 2026, adjusted annually)
The credit is calculated at 15% federal (plus your provincial rate) on the amount above the threshold.
Example
- Net income: $60,000
- 3% of net income: $1,800
- Total eligible medical expenses: $4,000
- Claimable amount: $4,000 − $1,800 = $2,200
- Federal tax credit (15%): $330
- Plus provincial credit (varies)
Eligible medical expenses
Commonly claimed expenses
| Expense | Eligible? | Notes |
|---|---|---|
| Prescription medications | Yes | Prescribed by a doctor, not over-the-counter |
| Dental work | Yes | Cleanings, fillings, crowns, root canals, braces, dentures |
| Eyeglasses and contact lenses | Yes | One pair/year, prescribed |
| Laser eye surgery | Yes | |
| Orthotics and orthopedic shoes | Yes | Prescribed |
| Hearing aids | Yes | |
| Ambulance fees | Yes | |
| Private health insurance premiums | Yes | Premiums you pay (not employer-paid) |
| Travel for medical treatment | Yes | If treatment 40+ km away (vehicle and accommodation) |
| Fertility treatments (IVF) | Yes | |
| Medical cannabis | Yes | Prescribed by authorized healthcare practitioner |
| Attendant care | Yes | Full amount if for disability; partial otherwise |
| Private hospital room | Yes | Difference beyond standard ward |
| Wheelchair | Yes | |
| Therapy (psychologist, physiotherapy) | Yes | Licensed practitioner |
| Nursing home care | Yes |
Not eligible
| Expense | Eligible? |
|---|---|
| Over-the-counter medications | No |
| Cosmetic surgery (elective) | No |
| Gym memberships / fitness | No |
| Vitamins and supplements | No (unless prescribed for specific condition) |
| Teeth whitening | No |
| Hot tubs / saunas | No |
The 12-month claiming period
You are not restricted to the calendar year. You can claim any 12-month period ending in the tax year. This is powerful because it lets you batch expenses:
- Tax year 2026: You can claim expenses from any 12-month period ending in 2026
- For example: February 1, 2025 to January 31, 2026
Choose the 12-month window that captures the most expenses.
Who should claim medical expenses
The lower-income spouse should claim
The threshold is 3% of net income. A lower income means a lower threshold and a larger credit.
| Scenario | Net Income | Threshold (3%) | Expenses | Claimable |
|---|---|---|---|---|
| Higher earner claims | $100,000 | $2,759 (capped) | $4,000 | $1,241 |
| Lower earner claims | $40,000 | $1,200 | $4,000 | $2,800 |
The lower earner claims $1,559 more, generating an additional $234+ in federal tax credits.
One spouse can claim the other’s expenses
Either spouse can claim medical expenses paid for themselves, their spouse, and their dependent children under 18.
Maximizing your medical expense claim
- Track everything — Keep every receipt for medical expenses all year
- Let the lower-income spouse claim — Lower threshold means bigger credit
- Choose the best 12-month period — Not limited to calendar year
- Combine family expenses — One spouse claims for the whole family
- Include travel costs — If you travel 40+ km for treatment, claim vehicle expenses and accommodation
- Check provincial credits — Some provinces offer additional medical expense benefits
Refundable provincial medical expense credits
Some provinces offer additional refundable medical expense supplements for lower-income earners, which can provide further tax savings beyond the federal METC.
Bottom line
If your household has significant medical expenses — dental work, prescriptions, therapy, or private insurance premiums — the Medical Expense Tax Credit can save you hundreds or thousands on your tax return. The key is tracking every expense and having the lower-income spouse claim them. Use our income tax calculator to see how medical expense credits affect your overall tax bill.
Medical Expense Tax Credit vs. Disability Supports Deduction
These are two separate credits that are often confused:
| Feature | Medical Expense Tax Credit | Disability Supports Deduction |
|---|---|---|
| Credit type | Non-refundable credit | Deduction (reduces taxable income) |
| Who can claim | Anyone with eligible expenses | Persons with disabilities |
| Examples | Prescriptions, dental, travel | Job-related disability aids, tutoring, sign language |
| Where to claim | Schedule 1, Line 33099/33199 | Line 21500 of T1 return |
| 50% floor | Yes (3% of net income) | No floor — full deduction |
| Double-claiming | Cannot claim same expense under both | Cannot claim same expense under both |
If you have a disability and incurred supports expenses to earn employment income, the Disability Supports Deduction is often more advantageous — it reduces your taxable income (not just your tax owing) and has no 3% income floor.
Attendant care and the METC
Attendant care is one of the most valuable METC claims for people with severe disabilities. The rules:
- Full claim: If you or your dependant qualifies for the Disability Tax Credit and uses an attendant, you can claim the full attendant care cost (not subject to the 50% rule). This makes it one of the few unlimited METC claims.
- Partial claim: If no DTC qualification, you can claim attendant care expenses that are directly required for medical care.
- Nursing homes: Full cost of care in a nursing home is eligible, not just the medical portion.
Keep all contracts, invoices, and receipts from care providers. Payments to spouses or minor children for attendant care are not eligible.