Medical Expense Tax Credit in Canada 2025

The Medical Expense Tax Credit (METC) is a federal non-refundable tax credit that lets you recover 15% of eligible out-of-pocket medical costs above a threshold. If your family has significant health expenses not covered by insurance, this credit can save you a meaningful amount at tax time.

How the Medical Expense Tax Credit Is Calculated

For example, if your net income is $60,000 and you paid $4,500 in eligible medical expenses: the threshold is 3% × $60,000 = $1,800 (less than $2,759). Claimable amount = $4,500 − $1,800 = $2,700. Tax credit = $2,700 × 15% = $405.

Medical Expense Calculator

What Counts as an Eligible Medical Expense?

The CRA maintains a detailed list of eligible medical expenses. Common qualifying items include:

• Prescription medications
• Dental work (fillings, crowns, orthodontics, dentures)
• Eyeglasses, contact lenses, and laser eye surgery
• Hearing aids and batteries
• Ambulance fees
• Hospital fees (private room costs above standard ward)
• Medical devices prescribed by a doctor (wheelchair, crutches, CPAP machine)
• Physiotherapy, chiropractic, and acupuncture (if eligible)
• Fertility treatments
• Service animal costs (guide dogs, medical alert dogs)
• Travel for medical care (if 40+ km from home and no local equivalent)
• Home modifications for persons with disabilities
• Attendant care and nursing home costs

What Does NOT Qualify

• Cosmetic procedures with no medical purpose
• Over-the-counter medications (unless prescribed)
• Gym memberships or fitness equipment
• Vitamins and supplements (unless prescribed)
• Expenses reimbursed by insurance
• Health insurance premiums paid through an employer benefit plan

Claiming Expenses for a Spouse or Dependents

You can combine medical expenses for yourself, your spouse or common-law partner, and your dependent children under 18. The lower-income spouse should typically claim the combined expenses because the 3% threshold is lower on a smaller income, maximizing the claimable amount.

For other dependents (parents, adult children, etc.), you can claim their expenses separately on line 33199, subject to an income test on the dependent's net income.

12-Month Claim Period Flexibility

You do not have to claim expenses based on the calendar year. You can choose any 12-month period ending in the tax year. This flexibility allows you to stack expenses from two calendar years into one claim period if your expenses were bunched in a particular timeframe.

For example, on your 2024 return, you could claim expenses from April 2023 to March 2024, or July 2023 to June 2024 — whichever 12-month window ending on or before December 31, 2024 gives you the highest claimable amount.

Refundable Medical Expense Supplement

Low-income workers with high medical expenses may also qualify for the Refundable Medical Expense Supplement (line 45200). Unlike the standard METC, this supplement is refundable — meaning you can receive it even if you owe no tax. The maximum supplement for 2025 is approximately $1,464.