Medical Expense Tax Deductions Canada 2026: What to Claim

What qualifies as a medical expense tax deduction Canada filers can actually claim — and how much can you get back from the CRA? If you filed your 2025 taxes and left money on the table, or you’re planning ahead for 2026, you’re in the right place. The medical expense tax credit (METC) covers far more than most Canadians realize, from dental work and prescriptions to lesser-known items like travel costs for treatment. This guide breaks down exactly which expenses qualify, how to calculate your credit, the 2026 threshold you need to clear, and the documentation CRA expects if they come knocking.

Quick Answer:

• You can claim eligible medical expenses for yourself, your spouse, your children under 18, and certain dependants — ranging from prescriptions and dental work to artificial limbs, contact lenses, and even some travel costs
• For 2026, you must subtract the lesser of 3% of your net income or a fixed threshold (approximately $2,814) before calculating your credit
• The federal medical expense tax credit rate is 14% of your eligible expenses above that threshold (down from 15% in prior years) — provincial credits add more on top
• Keep all receipts: CRA can request documentation for any claim, and missing paperwork means a denied deduction

How Does the Medical Expense Tax Deduction Canada Rules Actually Work?

The medical expense tax credit isn’t a straight deduction that reduces your taxable income dollar-for-dollar — it’s a non-refundable tax credit, which means it reduces the tax you owe rather than your income itself. Understanding this distinction matters because it affects how much you actually save.

Here’s how the math works for 2026.

The 3% Threshold You Must Clear

Before you get any credit, CRA subtracts the lesser of 3% of your net income or a fixed dollar threshold from your total eligible medical expenses. For the 2026 tax year, that fixed threshold is approximately $2,814 (it’s indexed to inflation each year — some sources still quote the 2025 figure of $2,759, but the 2026 threshold has risen with indexation).

So if your net income is $60,000, 3% equals $1,800. Since $1,800 is less than the fixed threshold, you subtract $1,800 from your eligible expenses. If your net income is $150,000, 3% equals $4,500 — but since that’s above the fixed cap, you only subtract the cap (~$2,814).

This threshold is why pooling medical expenses on the lower-income spouse’s return often makes sense: their 3% floor is lower, meaning more of your combined expenses turn into a credit.

The 14% Federal Credit Rate

Once you clear the threshold, the federal government gives you a credit worth 14% of the remaining amount. This rate dropped from 15% after the government reduced the lowest federal tax bracket rate to 14% effective July 1, 2025 — non-refundable credits are calculated at the lowest bracket rate.

Example (verified): You have $4,500 in eligible expenses. Your net income is $50,000, so your floor is $1,500 (3% of $50,000). Eligible amount for credit: $4,500 − $1,500 = $3,000. Federal credit: $3,000 × 14% = $420 off your federal tax bill.

Provincial credits add more — each province has its own rate (ranging from about 4% to 11% depending on where you live). A British Columbia resident might see another 5.06% on top; an Ontario resident, 5.05%. Combined, you’re typically looking at 19–25% of your qualifying expenses coming back as tax savings.

Who Can You Claim Expenses For?

CRA allows you to claim eligible medical expenses paid for:

• Yourself
• Your spouse or common-law partner
• Your children under 18
• Other dependants who relied on you for support (parents, grandparents, adult children with disabilities, etc.) — these go on a separate line (33199) and have a reduced credit calculation

The 12-month claim period is flexible: you pick any 12-month period ending in the tax year, as long as you haven’t already claimed those expenses. This lets you strategically bunch expenses into one claim if you had a high-cost medical year.

Which CRA Medical Expenses Claim Categories Qualify in 2026?

The list of eligible medical expenses Canada recognizes is longer than most people realize. CRA publishes an official list, but here’s a practical breakdown of what actually shows up on most Canadians’ returns — plus the commonly-missed items that could boost your refund.

Core Categories Everyone Knows

Lesser-Known Expenses Canadians Miss

These are the items that slip through the cracks — if you’re not tracking them, you’re leaving money behind:

Travel expenses for medical treatment: If you had to travel more than 40 km (one way) to access medical services not available near your home, you can claim vehicle expenses (simplified method: CRA’s per-kilometre rate) or public transit costs. If you had to travel more than 80 km, meals and accommodation become claimable too. Keep a log of dates, distances, and the medical reason for travel.

Attendant care and nursing home fees: Full-time attendant care, nursing home fees (the medical portion), and group home costs for those with disabilities qualify. Part-time attendant care (up to $10,000, or $20,000 in the year of death) is also claimable even if you’re claiming the disability tax credit.

Gluten-free food (for diagnosed celiac disease): The incremental cost of gluten-free products over their regular equivalents is deductible — if a gluten-free loaf costs $7 and a regular loaf costs $3, you can claim the $4 difference. You’ll need a letter from a medical practitioner confirming your diagnosis.

Fertility treatments and surrogacy expenses: In vitro fertilization (IVF), artificial insemination, and related fertility drugs qualify. For surrogacy, certain medical expenses paid on behalf of the surrogate mother are also eligible.

Service animals: Costs for animals trained to assist individuals with severe diabetes, autism, epilepsy, or other disabilities — including food, care, and veterinary expenses — can be claimed.

Air conditioner or air purifier: If you have a severe chronic respiratory ailment or immune disorder and your doctor certifies the equipment is necessary, you can claim the cost. This surprises many Canadians with asthma or COPD who’ve never thought to ask their doctor for documentation.

Therapy and mental health services: Fees for psychologists, psychotherapists, and mental health counsellors registered with a provincial college are eligible. The key is “licensed” — many life coaches or unlicensed counsellors don’t qualify, but registered social workers providing therapy often do.

If you’re discovering expenses you missed on your 2025 return, you’re not out of luck — CRA allows you to request adjustments for previous years, typically going back up to 10 years. The process is straightforward through CRA My Account.

What’s the Eligible Medical Expenses Canada 2026 Threshold — and How Do You Calculate Your Credit?

Let’s walk through a complete calculation so you can see exactly how your credit forms. This is where most Canadians get confused, so we’ll break it down step by step.

Step 1: Add Up All Eligible Expenses

Gather receipts for the 12-month period you’re claiming (any consecutive 12 months ending in 2026). Let’s say your household had:

• Prescription drugs: $1,200
• Dental work (cleanings, one filling): $850
• New prescription glasses: $450
• Physiotherapy sessions (not covered by benefits): $600
• Travel to specialist (180 km round trip, 4 visits): ~$120 (at CRA’s per-km rate)

Total eligible expenses: $3,220

Step 2: Determine Which Spouse Should Claim

You and your spouse have net incomes of $85,000 and $52,000 respectively. Calculate the 3% floor for each:

• Higher-income spouse: $85,000 × 3% = $2,550
• Lower-income spouse: $52,000 × 3% = $1,560

Since the fixed threshold for 2026 (~$2,814) is higher than both calculations, you’d use the 3% figure in both cases. Claiming on the lower-income spouse’s return means subtracting $1,560 instead of $2,550 — that’s an extra $990 of expenses that turn into a credit.

Step 3: Calculate the Federal Credit

Claiming on the $52,000 income:

$3,220 − $1,560 = $1,660 eligible for credit

Federal credit: $1,660 × 14% = $232.40 (verified)

Step 4: Add Provincial Credit

Let’s say you’re in Ontario (provincial rate: 5.05%):

$1,660 × 5.05% = $83.83 (verified)

Total combined credit: $316.23 (verified)

If you’d claimed on the higher-income spouse’s return, you’d have lost $990 × 19.05% = approximately $189 in credits (verified). That’s real money for the same expenses.

The Refundable Medical Expense Supplement

Lower-income Canadians may also qualify for the refundable medical expense supplement (line 45200) — this is separate from the non-refundable credit and actually pays out even if you owe no tax. For 2026, you need to have earned income above a certain threshold and net income below another. If you’re a working Canadian with modest income and significant medical costs, check if you qualify for this supplement alongside your regular credit — it can add several hundred dollars to your refund.

Documentation CRA Expects: What to Keep and For How Long

CRA doesn’t require you to submit receipts with your return — but they can request them at any time, and a denied claim costs more than just the credit you lose. Here’s what to keep.

For Every Medical Expense

• Itemized receipts showing the date, provider name, type of service/product, and amount paid
• Prescription printouts from your pharmacy (most provide an annual summary — ask for one in January)
• Proof of payment — credit card statements or cancelled cheques if the receipt itself doesn’t show payment

For Special Categories

• Travel for medical treatment: A log of each trip (date, destination, medical provider visited, distance) plus receipts for accommodation/meals if applicable
• Attendant care: Receipts from the care provider plus a signed letter from a medical practitioner confirming the need
• Gluten-free food: Grocery receipts showing gluten-free purchases plus a letter confirming celiac diagnosis
• Medical equipment (air conditioner, etc.): The purchase receipt plus a letter from your doctor specifying medical necessity

How Long to Keep Records

CRA can reassess your return for up to three years after your initial notice of assessment for most situations — but in cases of suspected fraud or significant errors, they can go back further. The safe rule: keep medical expense records for six years from the end of the tax year you claimed them.

Digital storage counts — scan your receipts and store them in a dedicated folder. Just make sure they’re legible if CRA requests them.

Key Takeaways

• The medical expense tax credit threshold for 2026 is 3% of your net income or approximately $2,814 — whichever is less. Claiming on the lower-income spouse’s return often maximizes your credit
• The federal credit rate dropped to 14% in 2026 (from 15%, effective July 2025), matching the new lowest tax bracket. Provincial credits add another 4–11% depending on where you live
• Eligible expenses go far beyond prescriptions and dental work — travel for treatment, gluten-free food for celiac disease, therapy, fertility treatments, and medical equipment like air purifiers can all qualify with proper documentation
• You can claim a 12-month period ending anytime in the tax year, letting you strategically bunch high-cost medical years for maximum credit
• Keep itemized receipts and supporting letters for at least six years — CRA doesn’t require them upfront but can request them anytime
• Lower-income Canadians should check eligibility for the refundable medical expense supplement (line 45200), which pays out even if you owe no tax
• Verified example: bunching a $3,220 claim on the lower-income spouse instead of the higher-income spouse is worth an extra ~$189 in combined credits

Frequently Asked Questions

What medical expenses can I claim on my Canadian taxes in 2026?

You can claim a wide range of expenses including prescription medications, dental work, vision care (glasses, contacts, laser surgery), medical devices like hearing aids and wheelchairs, hospital fees, ambulance charges, physiotherapy, mental health therapy from licensed practitioners, fertility treatments, and even travel costs to access medical care more than 40 km from your home. The key requirement is that expenses must be paid for yourself, your spouse, children under 18, or other qualifying dependants, and they must not be reimbursed by insurance. CRA publishes a detailed list of eligible expenses that’s worth reviewing for less common items.

Can I claim dental work and prescriptions on my tax return?

Yes — dental work and prescriptions are two of the most commonly claimed medical expenses. Dental expenses include cleanings, fillings, extractions, crowns, root canals, dentures, and orthodontics (braces). Prescription drugs must be prescribed by a licensed medical practitioner and recorded by a pharmacist; over-the-counter medications generally don’t qualify unless specifically prescribed for your condition. If your employer health plan partially covers these costs, you can only claim the portion you actually paid out of pocket.

How do I calculate the medical expense tax credit threshold?

Start with your total eligible medical expenses for a 12-month period ending in the tax year. Then subtract the lesser of 3% of your net income (line 23600) or the fixed threshold for the year (approximately $2,814 for 2026). The remaining amount is multiplied by 14% to calculate your federal credit. Add your provincial credit (calculated similarly, using your province’s rate) for your total tax savings. To maximize the credit, claim expenses on the spouse with lower net income — their 3% floor will be smaller, leaving more expenses eligible for the credit.

Understanding the medical expense tax deduction Canada rules can put hundreds — sometimes thousands — of dollars back in your pocket, especially if you’ve been missing commonly-overlooked claims like travel, therapy, or medical equipment. Whether you’re claiming for 2026 or realizing you missed deductions in past years, the process is the same: gather your receipts, calculate your threshold, and claim on the return that maximizes your credit. For more ways to reduce your tax bill, explore hidden deductions Canadian workers often miss or learn how tax brackets actually work so you can plan smarter year-round.