Updated: April 2025  |  bremo.io financial guides

Medical Expense Tax Credit Canada: What Qualifies

The Medical Expense Tax Credit (METC) is one of the most commonly missed tax credits in Canada, mainly because many people do not realize how many health-related costs qualify. If your eligible medical expenses exceed a threshold, you earn a 15% federal credit — plus provincial credits — on the excess. Here is what qualifies and how to claim it.

How the Medical Expense Credit Works

The credit is non-refundable and equals 15% federally of your eligible medical expenses above the threshold. Provincial credits add another 5 to 10%. The threshold exists because small, ordinary health costs are considered personal expenses. The credit is designed to help people with significant, unusual medical costs.

For someone with a net income of $60,000, the threshold is the greater of $2,635 and $1,800 (3% of $60,000). Since $2,635 is larger, that is the threshold. If they spent $5,000 on eligible medical expenses, the creditable amount is $5,000 minus $2,635, which equals $2,365. The federal credit is $2,365 times 15% equals $354.75.

Eligible Medical Expenses

The CRA's list of eligible medical expenses is extensive. Key qualifying expenses include:

Prescriptions and Medications

Prescription drugs and medications prescribed by a medical practitioner are eligible. Over-the-counter medications are generally not eligible even if recommended by a doctor. Insulin and certain other diabetes medications are specifically listed as eligible. Cannabis prescribed by a licensed practitioner qualifies.

Dental Care

Dental expenses are eligible including checkups, fillings, crowns, root canals, extractions, orthodontics, and dentures. Cosmetic procedures like teeth whitening are not eligible. Dental premiums paid to a private health plan are eligible as insurance premiums.

Vision Care

Eyeglasses, contact lenses, and eye exams performed by an ophthalmologist or optometrist are eligible. Laser eye surgery is also eligible.

Physiotherapy and Allied Health

Physiotherapy, chiropractic treatments, massage therapy (when prescribed), occupational therapy, and speech-language pathology services are eligible when provided by a licensed practitioner.

Medical Devices

Hearing aids, wheelchairs, walkers, crutches, orthotics, prostheses, oxygen equipment, CPAP machines, blood glucose monitors, and insulin pumps all qualify. These can represent significant annual costs for people who need them.

Mental Health

Services from licensed psychologists and psychiatrists are eligible. Licensed psychotherapists are eligible in provinces where they are regulated. Note that coaching and counseling from non-regulated practitioners generally does not qualify.

Fertility Treatments

In vitro fertilization (IVF) and other fertility treatments are eligible medical expenses in Canada. This can be a very significant amount for families going through fertility treatment.

Travel for Medical Care

Travel expenses to receive medical care qualify if you must travel at least 40 kilometres one way to reach the nearest facility able to provide the treatment. This includes vehicle expenses, meals, and accommodation if the travel is more than 80 kilometres.

Private Health Insurance Premiums

Premiums paid to a private health insurance plan are eligible medical expenses. If you pay for extended health, dental, and vision coverage as an employee (amounts deducted from your pay and shown on your T4), those premiums count. Self-employed individuals can also include their health insurance premiums.

What Does Not Qualify

Expenses that do not qualify include gym memberships, most vitamins and supplements, non-prescription medications, cosmetic procedures unless required for medical reasons, and health-related apps or wearables.

Claiming Family Medical Expenses Together

You can claim medical expenses for yourself, your spouse or common-law partner, and your dependents (children under 18) all together. Combining family medical expenses often helps cross the threshold. It generally makes sense for the lower-income spouse to claim family medical expenses because their threshold (3% of net income) will be smaller, resulting in more of the expenses being credited.

The 12-Month Claim Period Strategy

You are not limited to claiming medical expenses from January to December. You can claim any 12-month period ending in the tax year. For example, you could claim expenses from April 2023 to March 2024 on your 2024 return if that 12-month window captures a large expense that bridges calendar years. This flexibility lets you bundle significant medical events to maximize the claim.

Keeping Records

Keep all receipts for medical expenses for at least 6 years. The CRA does not require you to submit receipts when filing electronically, but they may ask for them later if your return is selected for review. Organize receipts by year and keep a simple spreadsheet of eligible amounts paid.