Updated February 2026

Armed with the right knowledge and guidance, claiming medical expenses in Canada can be a straightforward process that yields significant financial benefits.

As we navigate the 2026 tax season, understanding the latest thresholds and eligible categories is vital. Let’s delve into the intricacies of this tax credit and explore how Canadians can maximize their returns while staying fully compliant with the Canada Revenue Agency (CRA).

What is a Medical Expense?

First and foremost, it’s crucial to understand what constitutes eligible medical expenses. The Canada Revenue Agency (CRA) defines medical expenses as costs incurred for medical services, treatments, and products that are not covered by insurance. 

This encompasses a wide range of expenditures, including prescription medications, dental services, vision care, medical devices, and even certain travel expenses for medical treatments not available locally. 

Some items that qualify in 2026 include:

• Prescription Portions: The amount you paid out-of-pocket for medications.
• Vision Care: Prescription glasses or contact lenses.
• Fertility-related Costs: Fees paid to donor banks for sperm/ova and medical expenses for a surrogate mother.
• Professional Services: Services from authorized practitioners like RMTs, psychologists, or physiotherapists (note: eligibility can vary by province).
• Dental Care: Routine cleanings, fillings, and major restorative work.
• Travel and Parking: If you had to travel at least 40km (one way) for medical services not available locally.

This is a frequently reviewed category when CRA reviews personal tax returns. It’s easy for them to deny credits as people often record the expenses off credit card or bank statements and don’t have the supporting documentation.

While many medical expenses are eligible for deduction, it’s important to note that not all healthcare costs qualify. For instance, over-the-counter medications, cosmetic surgeries, and health club memberships are typically excluded.

Consulting the CRA’s comprehensive list of eligible medical expenses or seeking advice from a tax professional can help ensure accuracy when claiming deductions.

Common Mistakes

Some common mistakes include:

Claiming over-the-counter medications

Claiming medical devices without a prescription

Claiming the full expense instead of only the portion paid by the taxpayer

Remember, if CRA catches you making mistakes one year, they are more likely to look deeper into your situation and review other years as well.

Choosing Your Claim Window

For the 2025 tax year, you aren’t restricted to the standard calendar year. You can select any 12-month period as long as it concludes sometime in 2025. This flexibility is a strategic advantage:

The “No Double-Dipping” Rule: You can’t claim the same receipt twice. If an expense was already included on your 2024 return, it’s off-limits for 2025.

Strategic Bundling: If you had significant costs in mid-2024 and early 2025, you could select a window like July 2024 to July 2025 to maximize your total.

Calculating Your Benefit

There is no “cap” on how much you can claim for your immediate family, but there is a minimum threshold you must hit before the credit kicks in. You can only claim the amount that surpasses the lower of these two figures:

1. 3% of your net income, or
2. $2,834 (the 2025 ceiling).

Tips for Maximizing Your Return

Rule	What You Need to Know
The Lower-Earner Strategy	Because the threshold is tied to net income, it usually makes sense for the spouse with the lower income to claim the family’s combined expenses. This makes it easier to clear the 3% hurdle.
Out-of-Pocket Only	You can only claim what you actually paid. If your private insurance reimbursed a portion of the bill, only the remaining balance is eligible.
Dependents	You can claim for yourself, your spouse or common-law partner, and your children under 18.

Note: Always keep your receipts organized. While you don’t always need to submit them with your return, the CRA may ask to see them later to verify your 12-month window.

Reference: Ontario tax information for 2025 – Canada.ca

It’s a Credit, not a Deduction

Note that the METC is a non-refundable tax credit, not a deduction. You don’t get to take the entire expense off of your income. 

For the amount above the threshold, you receive a 14% federal tax credit. Since this is a non-refundable credit, it can only reduce your tax owing to zero; it will not result in a refund if you paid no tax.

Extra Support for Low-Income Earners

If you have high medical expenses but a lower income, you may also qualify for the Refundable Medical Expense Supplement (Line 45200). For 2026, this can provide up to $1,544 in a refundable payment, even if you don’t owe any tax, provided your adjusted family net income is below approximately $65,000.

How to Claim the METC

When filing taxes, individuals can claim medical expenses on Schedule 1 of the T1 General form on lines 33099 or 33199.

This section allows taxpayers to detail their medical expenses and calculate the corresponding tax credit. It’s crucial to ensure accuracy and completeness when filling out this section to avoid potential discrepancies or audits.

Documents to Support the Medical Expenses Claim

Keep these documents in case the Canada Revenue Agency (CRA) asks to see them later:

Receipts – showing the company or individual to whom the expense was paid.

Prescriptions

Certification in writing

Form T2201, Disability Tax Credit Certificate

The List of common medical expenses from CRA would indicate if you need a prescription, or a certification in writing, and or if you need the Disability Tax Credit Certificate approved, to support your claim.

Beyond the Tax Return: Finding Further Relief

High medical costs shouldn’t be a barrier to your well-being. Beyond federal credits, many provincial and community programs offer targeted support—ranging from prescription subsidies to medical transportation assistance. Exploring these local resources can provide vital relief when you need it most.

Navigating Canada’s 2026 tax landscape requires precision, but the effort pays off. By maintaining meticulous records and choosing the right 12-month claim window, you do more than just file a return—you reclaim the financial resources necessary to prioritize your health.

Tax season doesn’t have to be a solo journey. If you’re unsure which expenses qualify or how to maximize your claim, KATA Accounting is here to guide you. Let’s ensure you receive every dollar of credit you’ve earned..