Medical Expense Tax Credit in Canada: What Qualifies and How to Claim It in 2025

What Is the Medical Expense Tax Credit?

The medical expense tax credit (METC) is a non-refundable tax credit available to Canadian residents who paid eligible medical expenses during the year. It applies at both the federal level and the provincial level (Ontario in our examples). Because it is non-refundable, it can reduce your tax owing to zero but will not generate a refund on its own — though it can free up other refundable credits.

You claim medical expenses on Lines 33099 (for yourself, spouse, and minor children) and 33199 (for other dependants such as adult children with a disability) of your T1 return.

The Threshold Rule: The $2,834 Floor

You cannot claim every dollar of medical expenses — only the amount that exceeds a threshold. The threshold is the lesser of:

• 3% of your net income (Line 23600), or
• $2,834 (the 2025 fixed dollar amount)

In practice, the $2,834 cap kicks in once your net income exceeds approximately $94,467 (since 3% × $94,467 ≈ $2,834). Here are two examples:

A Worked Example

Suppose you have $6,000 in eligible medical expenses and a net income of $50,000:

• Threshold: 3% × $50,000 = $1,500
• Claimable expenses: $6,000 − $1,500 = $4,500
• Federal credit: $4,500 × 14.5% = $652.50
• Ontario credit: $4,500 × 5.05% = $227.25
• Total tax savings: approximately $879.75

The 12-Month Claim Window

A key planning opportunity: you do not have to use January 1 to December 31 as your claim period. You can claim expenses paid during any consecutive 12-month period that ends in 2025. For example, you could claim expenses from February 2024 through January 2025. This flexibility allows you to capture a large dental or medical bill that straddled two calendar years within a single claim.

What Medical Expenses Qualify?

Eligible Expenses (Major Categories)

• Prescription drugs: Medications dispensed by a licensed pharmacist and prescribed by a doctor or dentist.
• Dental work: Fillings, crowns, extractions, root canals, dentures, orthodontics, and routine exams — but not teeth whitening or other cosmetic procedures.
• Vision care: Prescription eyeglasses, contact lenses, laser eye surgery, and optometrist exams.
• Medical devices: Hearing aids and batteries, crutches, wheelchairs, pacemakers, insulin pumps, and other prescribed medical devices.
• Travel for medical care: If you must travel more than 40 km (one way) to obtain medical services not available locally, you can claim vehicle expenses or public transit costs. If travel exceeds 80 km, you can also claim meals and accommodation.
• Attendant care / nursing home: Costs of a personal attendant or nursing home for a person with a severe disability (subject to specific rules if the Disability Tax Credit is also claimed).
• Private health insurance premiums: Premiums you personally paid for a private health services plan (PHSP) — shown in Box 85 of your T4 if paid through payroll, or in your own records if self-employed.
• Fertility treatments: In-vitro fertilization (IVF) procedures and fertility drugs prescribed by a physician.
• Mental health care: Fees for psychologists and psychotherapists who are registered under provincial legislation (eligibility varies by province and CRA interpretation).
• Ambulance services: Ground or air ambulance transport to a hospital.
• Home modifications for disability: Certain renovations to accommodate a severe mobility impairment (e.g., wheelchair ramps, grab bars) may qualify.

Expenses That Do NOT Qualify

• Over-the-counter medications (Tylenol, cold medicine, vitamins) — unless specifically prescribed in writing by a doctor
• General vitamins, supplements, and herbal remedies
• Gym memberships, fitness classes, personal training
• Cosmetic surgery or procedures (unless medically necessary)
• Non-prescription reading glasses
• Expenses reimbursed by an insurance plan or employer

The Credit Rate: Federal + Ontario

For most Ontarians with income below $57,375, the combined credit rate is approximately:

• Federal: 14.5% (lowest federal bracket rate)
• Ontario: 5.05% (lowest Ontario bracket rate)
• Combined: approximately 19.55% of eligible expenses above the threshold

This means for every $1,000 in eligible medical expenses above the threshold, you save roughly $195.50 in combined federal and Ontario tax.

Should One Spouse Claim All Medical Expenses?

You can claim medical expenses paid for yourself, your spouse or common-law partner, and your dependent children born in 2009 or later on a single return. There is no rule requiring each person to claim their own expenses — and strategically, it almost always makes sense to claim all family medical expenses on the lower-income spouse’s return.

Here’s why: the threshold is 3% of the claimant’s net income. A lower income produces a smaller threshold, meaning more of your total expenses exceed the floor and become claimable. For example, if Partner A earns $80,000 (threshold $2,834) and Partner B earns $35,000 (threshold $1,050), claiming on Partner B’s return produces a threshold that is $1,784 lower — translating to roughly $348 more in tax savings at combined rates.

Disability Tax Credit and Medical Expenses

If you or a family member qualifies for the Disability Tax Credit (DTC) — worth $10,138 federally and $10,298 in Ontario for 2025 — there are special rules around claiming attendant care as a medical expense. Generally, you can claim attendant care as a medical expense or claim the DTC, but you cannot use the same attendant care costs to support both claims. A tax professional can help you determine which approach produces a better result for your situation.

Keep Your Receipts

CRA does not require you to submit receipts when you file, but you must retain them for at least six years after your filing date. A valid receipt should show:

• The name and address of the medical provider
• The date the service was provided or the product was purchased
• The name of the patient
• A description of the service or product
• The amount paid

For the full CRA list of eligible medical expenses, see the CRA’s official eligible medical expenses guide.

Frequently Asked Questions

Do I need to send my medical receipts to CRA when I file?

No, you do not send receipts when you file electronically via NETFILE or even by paper mail initially. However, you must keep all original receipts for at least six years from the date you filed. CRA frequently selects returns claiming medical expenses for a review and will request your receipts at that point. Each receipt should show the provider name, date of service, patient name, description, and the amount paid.

Can I claim prescription glasses and contact lenses as medical expenses?

Yes. Prescription eyeglasses, contact lenses, and laser eye surgery are all eligible medical expenses in Canada. Eye exams by a licensed optometrist are also eligible. Non-prescription reading glasses purchased off the shelf are not eligible. Keep your receipts from the optician and a copy of your prescription to support the claim if CRA requests it.

Is dental work tax deductible in Canada?

Yes, most dental procedures qualify as eligible medical expenses. Fillings, extractions, crowns, bridges, dentures, and orthodontics all qualify. Routine dental check-ups and x-rays also qualify. However, purely cosmetic procedures such as teeth whitening do not qualify as medical expenses. Keep itemized receipts from your dentist, as CRA may request documentation during a review.

Can I claim medical expenses for my adult child who is in university?

For the 2025 tax year, you can claim medical expenses for dependent children born in 2009 or later on Line 33099. Adult university students (age 16 and older) generally cannot be claimed on Line 33099. However, if an adult child was dependent on you due to a physical or mental infirmity, you may be able to claim their expenses on Line 33199. The threshold for Line 33199 claims is calculated using 3% of the dependant’s net income, not yours.

My employer reimbursed some of my medical expenses — can I still claim them?

You can only claim the portion of medical expenses that was not reimbursed and is not eligible for reimbursement under any insurance plan. If your employer’s health plan reimbursed $800 of a $1,200 dental bill, only the unreimbursed $400 is eligible for the METC. Importantly, if your plan would cover an expense but you chose not to submit the claim, CRA still considers that expense reimbursable — it cannot be claimed as a medical expense on your return.