Medical Expense Tax Credit: Complete Guide

How the Credit Is Calculated

The federal medical expense tax credit is calculated as 15% of eligible medical expenses that exceed the lesser of:

• 3% of your net income (Line 23600), OR
• $2,759 (for 2024 tax year)

Each province also has its own medical expense tax credit with similar but varying thresholds.

Example Calculation

If your net income is $60,000 and you have $4,000 in medical expenses:

• 3% of $60,000 = $1,800
• Lesser of $1,800 or $2,759 = $1,800
• Claimable amount: $4,000 - $1,800 = $2,200
• Federal credit: $2,200 × 15% = $330

12-Month Claim Period

You can claim medical expenses for any 12-month period ending in the tax year. This provides flexibility:

• The period must end in 2024 to claim on your 2024 return
• You can choose any 12-month period (e.g., April 2023 to March 2024)
• Strategically choose the period to maximize your claim
• Cannot overlap with a period claimed in a previous year

Eligible Medical Expenses

Prescription Items

• Prescription medications
• Prescription glasses and contact lenses
• Prescription orthotics and orthopedic shoes
• Insulin and diabetes supplies

Dental Care

• Dental treatments and cleanings
• Dentures and dental implants
• Orthodontic work (braces)
• Dental surgery

Vision Care

• Eye exams
• Prescription eyeglasses and contact lenses
• Laser eye surgery
• Guide dogs for the blind

Medical Practitioners

• Doctors and specialists
• Chiropractors and physiotherapists
• Psychologists and psychotherapists
• Occupational therapists
• Naturopaths (in some provinces)
• Registered massage therapists (with prescription)

Hospital & Facility Costs

• Hospital expenses not covered by provincial health
• Private hospital room upgrades
• Ambulance services
• Nursing home care (medical portion)

Medical Devices & Equipment

• Hearing aids and cochlear implants
• Wheelchairs and walkers
• Hospital beds for home use
• CPAP machines for sleep apnea
• Blood glucose monitors
• Oxygen concentrators

Travel for Medical Care

• Travel to access medical treatment not available locally
• Must travel at least 40 km one way
• Meals and accommodations if traveling 80+ km
• Can claim per-kilometer rate or actual vehicle costs

Expenses That Don't Qualify

• Over-the-counter medications (unless prescribed)
• Vitamins and supplements (unless prescribed for specific condition)
• Cosmetic procedures
• Gym memberships and fitness expenses
• Health insurance premiums (claimed separately if paid through payroll)
• Amounts reimbursed by insurance

Special Situations

Disability Supports Deduction

If you have a disability, some expenses may qualify as a deduction (more valuable than a credit) under the Disability Supports Deduction (Line 21500).

Fertility Treatments

IVF and other fertility treatments are eligible, including:

• Medical procedures and monitoring
• Medications prescribed for fertility
• Some associated laboratory costs

Medical Cannabis

Eligible if:

• Purchased from a licensed producer
• You have a medical document from a healthcare practitioner
• Used for a diagnosed medical condition

Attendant Care

If you or a dependant requires full-time attendant care due to a mental or physical impairment, you may claim these costs.

Who Can Claim What

Your Expenses

You can claim your own medical expenses on your return.

Spouse's Expenses

Either spouse can claim both partners' medical expenses. Usually, the lower-income spouse should claim to maximize the credit (lower 3% threshold).

Dependent Children

Claim expenses for children who were under 18 at any point during the tax year and dependent on you for support.

Other Dependants

You may claim medical expenses for other dependent relatives (parents, grandparents, adult children, siblings) if they depended on you for support and had net income under $7,999 (2024).

Refundable Medical Expense Supplement

Low-income working Canadians may qualify for the Refundable Medical Expense Supplement (RMES):

• Maximum $1,465 for 2024
• Must have employment income of at least $4,282
• Family net income must be below $32,797 for full benefit
• Claimed automatically when you file your return

Documentation Requirements

Keep these records for 6 years:

• Receipts for all medical expenses
• Prescriptions from medical practitioners
• Proof of payment (credit card statements, cancelled cheques)
• Insurance reimbursement statements
• Travel log if claiming medical travel expenses

Common Claiming Strategies

• Bundle expenses: Schedule elective procedures in the same 12-month period
• Choose the right claimant: Lower-income spouse often benefits more
• Select optimal 12-month period: Choose dates that capture most expenses
• Don't forget travel: Keep mileage log for medical appointments
• Check insurance statements: Only claim the net amount after reimbursement