Can I claim medical expenses if my employer reimbursed me?

Generally, you cannot claim the reimbursed portion. Only the eligible amount that you paid and were not reimbursed for can normally be included.

Can I claim medical expenses paid for my elderly parents?

You may be able to claim eligible expenses for a parent who depended on you for support and meets the CRA's dependant conditions. The calculation is generally made separately using the parent's net income.

Do I need to submit medical receipts with my tax return?

You generally do not send receipts when filing electronically or by paper. Keep them, along with prescriptions and other required documents, in case the CRA requests proof.

Can I claim medical expenses paid outside Canada?

Some expenses paid outside Canada can qualify, including eligible services from medical practitioners and licensed hospitals. The expense must still meet CRA eligibility requirements.

Can medical expenses create a tax refund if I owe no income tax?

The standard Medical Expense Tax Credit is non-refundable, so it generally cannot create a refund by itself. Certain low-income working individuals may qualify separately for the refundable medical expense supplement if they meet its conditions.

Medical Expenses Tax Credit in Canada: Which Health Costs Can Reduce Your Tax Bill?

Key Takeaways

For 2026, the federal medical expense threshold is the lesser of $2,890 or 3% of the claimant's net income.
Families can generally combine eligible expenses for a taxpayer, spouse and qualifying children, while other dependant claims follow separate calculations.
Families can generally combine eligible expenses for a taxpayer, spouse and qualifying children, while other dependant claims follow separate calculations.

What Is the Medical Expenses Tax Credit in Canada?

The Medical Expense Tax Credit (METC) allows eligible Canadian taxpayers to reduce their federal income tax when they pay qualifying medical expenses for themselves or certain family members. It is a non-refundable tax credit, which means it can reduce tax payable but does not normally create a refund on its own.

The credit does not cover every health-related purchase. The Canada Revenue Agency (CRA) maintains a specific list of eligible expenses, and some items require a prescription, written certification or other supporting documents.

How Does the 3% Net-Income Threshold Work?

You cannot generally claim every dollar spent on medical care. For expenses claimed for yourself, your spouse or common-law partner, and eligible children under 18, you first subtract the lesser of:

3% of your net income for the year
The annual federal threshold

For the 2026 tax year, the annual federal threshold is $2,890. For comparison, the threshold for 2025 was $2,834.

For example, imagine your 2026 net income is $60,000 and your eligible family medical expenses total $5,000.

Three per cent of $60,000 is $1,800. Because this is lower than $2,890, you subtract $1,800 from the $5,000 expense total. Your allowable amount before calculating the tax credit is therefore $3,200.

The credit is calculated using the applicable federal tax credit rate. Provincial or territorial credits may provide an additional benefit, depending on where you live.

Which Medical Expenses Can You Claim?

The CRA recognizes a wide range of eligible expenses, although individual conditions apply. Common examples include:

Prescription medicines recorded by a pharmacist
Dental treatment, dentures and orthodontic work
Prescription eyeglasses and contact lenses
Hearing aids and certain assistive devices
Ambulance services and eligible medical practitioner fees
Private health services plan premiums paid personally
Certain nursing-home, attendant-care and nursing expenses
Eligible medical travel and accommodation costs

Some less obvious expenses can qualify too. For example, certain medical equipment, accessibility renovations and fertility-related procedures may be eligible when the CRA's specific conditions are met.

However, ordinary vitamins and supplements, over-the-counter medicines, gym memberships, cosmetic procedures performed only for appearance and expenses reimbursed by insurance generally cannot be claimed.

Always check the CRA's eligible medical expenses list before including an unusual purchase. A medical reason for buying something does not automatically make it eligible.

How Does the 12-Month Medical Expense Claim Period Work?

You do not have to use only January 1 to December 31 when selecting medical expenses. The CRA generally allows a taxpayer to choose any period of 12 consecutive months that ends in the tax year of the claim.

For a 2026 return, for example, you could choose a period running from October 1, 2025, to September 30, 2026, instead of using the calendar year.

This flexibility can help when a large dental procedure, surgery or treatment plan creates substantial expenses over several months. However, the selected expenses must not have been claimed in an earlier tax return.

Keep the payment dates in mind. The relevant date is generally when the expense was paid, not simply when the treatment was recommended or scheduled.

Can You Claim Medical Expenses for Your Spouse, Children or Parents?

On line 33099, you can generally combine eligible expenses paid by you or your spouse or common-law partner for yourself, your spouse or partner, and qualifying children under 18 at the end of the tax year.

For other dependent relatives, such as an adult child, parent, grandparent, brother or sister, you may be able to claim eligible expenses on line 33199 if that person depended on you for support and meets the CRA's relationship and residency conditions.

The calculation for these other dependants uses the dependant's net income threshold separately. You cannot simply add every relative's medical costs to the same family total.

Which Spouse Should Claim the Family's Medical Expenses?

Couples should compare the results before choosing who makes the claim. In many cases, the spouse with lower net income has a smaller 3% threshold, which can leave a larger amount eligible for the credit.

For example, if one spouse earns $90,000 and the other earns $45,000, 3% of their respective incomes is $2,700 and $1,350. If the same eligible family expenses can be claimed by either spouse, the lower-income spouse may produce a larger allowable amount.

This is not an automatic rule for every family. Compare the actual tax calculations, including provincial credits and each spouse's tax payable, before filing.

TwikUp's Perspective

Medical costs can put pressure on a household budget, particularly when families are managing prescriptions, dental treatment, specialist appointments and other out-of-pocket expenses. Although the Medical Expense Tax Credit can provide some tax relief, it should not be treated as an immediate solution to medical-related cash flow problems.

Some households may consider using a credit card or personal loan to manage unexpected healthcare bills. Before applying for additional borrowing, it is worth understanding the difference between a hard credit check and a soft credit check in Canada. A lender's credit inquiry can affect a borrower's credit profile, so understanding the process before submitting an application is important.

At TwikUp, we believe medical tax planning should begin with organized records, a realistic household budget and a clear understanding of insurance coverage. Reviewing eligible expenses throughout the year can help families make better tax-filing decisions without relying entirely on borrowing to cover healthcare costs.

Disclaimer

This article provides general educational information about Canadian tax rules and is not personalized tax advice. Eligibility can depend on the type of expense, supporting documentation, family relationship and tax year. Confirm current requirements with the CRA or a qualified tax professional before filing.

Sources

Canada Revenue Agency