Medical Expenses You Can Claim on Your Canadian Tax Return

Medical expenses give Canadian taxpayers a non-refundable tax credit that reduces federal and provincial tax owed. The CRA allows you to claim eligible medical expenses for yourself, your spouse or common law partner, and your dependent children under 18 on line 33099 of your T1 return. You can also claim medical costs for other dependants on line 33199. The credit covers a wide range of costs, from prescription drugs and dental work to medical devices and travel for treatment.

To claim the credit, your total eligible expenses must exceed either 3 percent of your net income or a fixed threshold set by the CRA each year, and you need receipts for every dollar.

What Qualifies as an Eligible Medical Expense in Canada?

The CRA maintains a detailed list of eligible medical expenses, and it covers far more than most taxpayers expect. Eligible medical expenses include payments made to licensed medical practitioners such as doctors, dentists, optometrists, chiropractors, physiotherapists, psychologists, and speech therapists. Prescription medications dispensed by a licensed pharmacist qualify, but over-the-counter drugs like pain relievers, vitamins, and supplements do not, even when a doctor recommends them. The CRA draws a firm line: if the medication does not require a prescription under law, it is not eligible.

Dental care is one of the largest medical expense categories. Fillings, crowns, root canals, braces, dentures, and dental implants all qualify. Cosmetic dental work like teeth whitening does not qualify unless a medical professional certifies it as medically necessary. Vision care qualifies as well.

Prescription eyeglasses, contact lenses, and laser eye surgery are all eligible expenses. Medical devices and equipment prescribed by a medical practitioner are also eligible, including hearing aids, wheelchairs, crutches, insulin pumps, blood glucose monitors, and prosthetic limbs.

Eligible vs Not Eligible Medical Expenses

Not every health-related cost qualifies for the CRA medical expense tax credit. This table breaks down what you can and cannot claim.

Eligible Expenses	Not Eligible
Prescription drugs from a pharmacist	Over-the-counter medications and supplements
Dental fillings, crowns, braces, implants	Cosmetic teeth whitening
Prescription glasses and contact lenses	Non-prescription sunglasses
Laser eye surgery	Gym memberships and fitness classes
Hearing aids and insulin pumps	Personal care products
Private health insurance premiums	Life insurance or disability premiums
Travel over 40 km for medical care	Travel for general wellness retreats
Psychologist and therapist fees	Massage therapy without a prescription
Attendant care and nursing home fees	Housekeeping or meal delivery services

How the Medical Expense Tax Credit Calculation Works?

The CRA applies a threshold before your medical expenses produce a tax credit. Only the amount above that threshold generates the credit. For the 2024 tax year, you subtract the lesser of two amounts from your total eligible medical expenses: 3 percent of your net income on line 23600, or $2,759 (this amount is indexed to inflation and changes each year). The remaining balance is multiplied by 15 percent at the federal level to produce your non-refundable tax credit.

Here is the calculation for a taxpayer in Toronto with $60,000 in net income and $5,200 in medical expenses:

• 3 percent of $60,000 = $1,800
• $2,759 is the CRA fixed threshold
• The lesser amount is $1,800
• $5,200 minus $1,800 = $3,400 eligible for the credit
• $3,400 times 15 percent = $510 federal tax credit

Provincial credits stack on top. In Ontario, the medical expense tax credit rate is 5.05 percent, so the same $3,400 produces an additional $172 provincial credit. The total tax reduction from medical expenses in this example is $682. The lower-income spouse should claim the medical expenses whenever possible. This is one of the most effective tax deductions you shouldn’t miss when filing your Canadian tax return.

Medical Expenses Most Canadians Miss

Several eligible expenses fall outside what most people think of as medical costs. These are the claims that get left on the table every year.

1. Private health insurance premiums that you pay out of pocket qualify as medical expenses. If your employer covers part of your plan and you pay the rest through payroll deductions, the portion you pay is eligible. Many taxpayers with group benefits never realize that their share of the premium is claimable.

2. Travel expenses for medical treatment qualify when you must travel more than 40 kilometres one way to access care that is not available near your home. You can claim the vehicle expenses at the CRA simplified rate or actual costs, plus meals and accommodation if you need to stay overnight. For travel over 80 kilometres, an accompanying person’s costs also qualify.

3. Gluten-free food premiums are eligible for individuals with a celiac disease diagnosis confirmed by a medical practitioner. The CRA allows you to claim the difference in cost between gluten-free products and their regular equivalents. You need receipts for both versions to prove the price difference.

4. Attendant care and nursing home fees paid for a family member qualify up to the CRA’s annual limits. Full-time attendant care in a nursing home or group home counts, as does part-time attendant care provided at home by a qualified individual.

5. Service animals trained to assist with certain disabilities are eligible. Costs include the purchase, care, and maintenance of the animal, plus reasonable food expenses. The CRA requires that the animal be specifically trained by a recognized provider to assist with a qualifying condition.

How to Claim Medical Expenses on Your Tax Return?

Medical expenses go on line 33099 of your T1 return for yourself, your spouse, and children under 18, and on line 33199 for other eligible dependants. One strategy most taxpayers miss is the 12-month period rule. The CRA does not require your medical expenses to follow the calendar year. You can choose any 12-month period that ends in the tax year you are filing.

Gather all receipts before you start. The CRA requires the name of the provider, the date of the service or purchase, the amount paid, and the reason for the expense. Pharmacy printouts showing your annual prescription totals are accepted. For medical devices, keep the prescription from your medical practitioner alongside the purchase receipt.

Your medical expense credit flows through Schedule 1 on your federal return. The total eligible amount minus the threshold goes on line 33200, and the 15 percent credit rate calculates your federal tax reduction. Provincial medical expense credits are calculated on your provincial tax form. For a complete walkthrough of the T1 process, our step by step guide to personal tax returns in Canada covers every section of the return.

Common Mistakes with Medical Expense Claims

Most errors come from claiming ineligible costs, poor receipt management, and filing under the wrong family member.

• Claiming cosmetic procedures. Purely cosmetic procedures such as teeth whitening, Botox for aesthetic purposes, and elective cosmetic surgery are not eligible unless a medical practitioner certifies them as medically necessary to treat a diagnosed condition.
• Not claiming under the lower-income spouse. The 3 percent threshold is based on net income. A spouse earning $40,000 has a threshold of $1,200, while a spouse earning $90,000 has a threshold of $2,700. Filing all medical expenses under the lower-income spouse maximizes the credit by $225 or more in most cases.
• Losing receipts. The CRA can request documentation for any claim. If you cannot produce the receipt, the CRA will deny that portion of your claim during a review. Keep pharmacy printouts, provider invoices, and insurance statements for at least six years.
• Claiming expenses your insurance covered. Only the out-of-pocket portion qualifies. If your dental plan covered 80 percent of a $2,000 procedure, you claim $400, not $2,000. The CRA cross-references insurance payments and will flag the discrepancy.
• Forgetting the 12-month period strategy. Filing on a strict calendar year basis can split a major medical event across two returns, reducing the credit in both years. Choose the 12-month window that groups the largest expenses together.

Tax Return Filers PC helps individuals and families across Toronto, Mississauga, Brampton, and Calgary claim every eligible medical expense on their personal income tax returns in Toronto, with all credits applied correctly, including medical expense optimization, the 12-month period strategy, and payroll deductions in Canada adjustments for health insurance premiums.