Claiming Medical Expenses

Medical costs can add up quickly—from prescriptions and dental care to specialized treatments and devices. While Canada’s health system covers many core services, there are still a wide range of out-of-pocket expenses that families must pay themselves. The good news is that many of these costs can be claimed on your tax return to help reduce your overall tax bill.

This matters when you're managing health-related costs for yourself, a spouse, your children, or a dependent relative. Understanding what can be claimed, and how to do it properly, ensures you don't leave money on the table during an already challenging time.

Let’s break down how the medical expense tax credit works, what counts, and how to claim it effectively.

How the Medical Expense Tax Credit Works

The medical expense tax credit is a non-refundable credit that reduces the amount of federal and provincial tax you owe. It is calculated based on your total eligible expenses, minus a threshold determined by your income.

You can claim the total amount of eligible expenses that exceed the lesser of:

• 3% of your net income, or

• A set dollar amount ($2,635 for the 2024 tax year, adjusted annually)

Only the amount above this threshold will count toward your tax credit.

This credit is claimed on Line 33099 of your return for yourself, your spouse or common-law partner, and your dependent children under 18. You may also claim expenses for other dependent relatives on Line 33199, provided you supported them during the year.

What You Can Claim

You can claim a wide range of medical expenses, provided they were:

• Prescribed by a medical practitioner (in most cases)

• Paid out-of-pocket (not reimbursed by insurance or other sources)

• Paid within the applicable claim period

Examples of commonly claimed expenses include:

• Prescription medications

• Dental care and orthodontics

• Eye exams, eyeglasses, and contact lenses

• Hearing aids and batteries

• Therapy and counselling services from licensed professionals

• Assistive devices and mobility aids

• Hospital or nursing home fees

• Fertility treatments and reproductive services

• Ambulance services and travel to medical care (under certain conditions)

Who You Can Claim Expenses For

You can claim eligible medical expenses for:

• Yourself

• Your spouse or common-law partner

• Your dependent children under 18

• Dependent adult relatives who rely on you for support, such as a parent, grandparent, sibling, or child over 18

If you paid medical expenses for another family member who meets the CRA’s dependency criteria, you may be able to include them in your total, even if they do not live with you.

How to Organize Your Claim

To maximize your credit and reduce your risk of an audit, follow these steps:

1. Keep original receipts: These should include the provider’s name, date of service, amount paid, and the name of the person who received the care.

2. Track insurance reimbursements: If any expenses were partially reimbursed, only claim the unpaid portion.

3. Use a spreadsheet or summary: Categorize expenses by type and date to simplify reporting.

4. Choose your best 12-month period: You are allowed to claim medical expenses for any 12-month period ending in the tax year, as long as you have not claimed those expenses in a previous year.

Coordinating With a Spouse

In a household with two adults, you can pool expenses and have one spouse claim the total amount to maximize the benefit. Often, it makes sense for the spouse with the lower net income to claim the expenses, as this lowers the 3% threshold and increases the claimable amount.