Medical Expenses and Your Taxes: What You Can (and Can’t) Claim in Canada
Medical expenses can help reduce the taxes you owe — but only if you meet certain rules. Many people assume that any medical bill counts, and that’s where confusion starts.
This guide breaks it all down in simple terms:
What medical expenses are generally allowed
Who you can claim for (yourself, spouse, children, dependents)
The income limits that apply
Where to check if a medical expense or practitioner qualifies
No tax jargon — just the basics you need to know.
What Are Medical Expenses for Tax Purposes?
Medical expenses are eligible health-related costs that you paid out of pocket and were not reimbursed by insurance or another plan.
These expenses can be claimed on your personal tax return as a non-refundable tax credit, which means they reduce the taxes you owe, but they won’t create or increase a refund on their own.
Both federal and provincial governments offer a medical expense credit, and the general rules are similar across Canada.
Common Examples of Eligible Medical Expenses
Here are some common expenses that may qualify (this is not a full list):
Prescription medications
Dental work (cleanings, fillings, crowns, braces)
Vision care (eye exams, prescription glasses, contact lenses)
Medical devices (hearing aids, orthotics, CPAP machines, insulin pumps)
Therapy services (physiotherapy, chiropractic, psychology — when provided by an authorized practitioner)
Certain medical supplies (test strips, needles, catheters, etc.)
⚠️ Important: Over-the-counter items usually do not qualify unless specifically listed by the CRA.
To see the full official list, visit the CRA’s page here
The Big Rule: The 3% Income Threshold
This is the rule that surprises most people.
You can only claim the portion of your medical expenses that is more than the lesser of:
3% of your net income, or
A fixed dollar amount set by the CRA for the year
Example:
If your net income is $50,000:
3% of $50,000 = $1,500
If you paid $2,300 in medical expenses
You can only claim $800 ($2,300 – $1,500)
This is why smaller medical bills often don’t result in a tax benefit.
Choosing the Best 12-Month Period
You don’t have to claim medical expenses based on the calendar year.
You can choose any 12-month period that ends in the tax year — as long as those expenses haven’t already been claimed before.
This allows you to:
Group large expenses together
Maximize the amount that exceeds the 3% threshold
For example, if you had dental work in late 2024 and early 2025, it may make sense to claim them together.
Claiming Medical Expenses for Your Spouse or Partner
You can claim medical expenses paid for:
Your spouse or common-law partner
These expenses are combined with your own medical expenses and are subject to your net income threshold — not theirs.
In many cases, it makes sense for the lower-income spouse to claim all eligible family medical expenses to get a better tax result.
Claiming Medical Expenses for Your Children
You can claim medical expenses paid for:
Your dependent children under 18
These expenses are included with your own medical expenses and use your income threshold.
This commonly includes:
Dental and orthodontic work
Vision care
Prescription medication
Claiming Medical Expenses for Dependents 18 and Over
This is where extra restrictions apply.
You may be able to claim medical expenses for a dependent who is:
18 or older
Dependent on you due to physical or mental impairment
Examples may include:
An adult child
A parent or grandparent
In these cases:
The claim is subject to a separate, lower limit
Not all dependents qualify
The relationship and dependency must meet CRA rules
These claims are more closely reviewed, so documentation is important.
Authorized Medical Practitioners Matter
Not every health provider qualifies — even if the service feels “medical.”
For an expense to be eligible:
The service must be provided by a CRA-authorized medical practitioner
Authorization depends on the province or territory
For example, some practitioners are allowed in one province but not another.
To confirm whether a practitioner qualifies in your province, use the CRA’s official list here.
Keep Your Receipts (Yes, All of Them)
You do not submit receipts with your tax return — but you must keep them in case the CRA asks.
Receipts should show:
Date of service
Name of the patient
Type of service or product
Amount paid
Practitioner or pharmacy information
Missing details can result in the claim being denied later.
What This Post Does Not Cover
Medical expenses can overlap with other important tax credits and deductions. We’ll be covering these in separate posts:
These topics have additional rules and deserve their own deep dive.
Final Thoughts
Medical expenses can lower your tax bill — but only when:
The expenses are eligible
The right people claim them
The income thresholds are properly applied
If you’re unsure whether your medical costs qualify or how to claim them properly, getting guidance before filing can help you avoid missed credits or CRA issues later. Book your FREE 15-minute consult or give us a call today.
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