Medical Expense Tax Credit — Claim What You Paid Out of Pocket
What you will learn: What qualifies as a claimable medical expense, how to calculate the threshold, how to claim it on your tax return, and why keeping receipts throughout the year matters.
You can claim out-of-pocket medical expenses that exceeded the lesser of 3% of your net income or $2,759 (2026 threshold). Only expenses you actually paid — not what insurance or a government plan covered — count. For many seniors, prescription drugs, dental work before the Canada Dental Care Plan, hearing aid batteries, physiotherapy, and home care add up to well over the threshold each year. The federal credit is 15% of the eligible amount.
Evelyn, 74, from Sault Ste. Marie, Ontario. Evelyn has Type 2 diabetes managed with medication, mild arthritis, and wears hearing aids. In 2025 she paid: $1,840 in prescriptions (not fully covered by OHIP drug plan), $680 for new hearing aid batteries and repairs, $420 in physiotherapy for her knee, and $240 for a medical appointment not covered by OHIP. Total out-of-pocket: $3,180.
Evelyn's net income is $22,000 (OAS + CPP + small pension). Her threshold: 3% × $22,000 = $660. Eligible to claim: $3,180 − $660 = $2,520. Federal credit at 15%: $378. Ontario provincial credit adds another ~$95.
The year before, Evelyn had not kept her receipts. She had guessed her expenses were "about $2,000" but could not prove it. "If I had just kept the drug store receipts," she said, "I would have gotten the credit every year."
The Threshold Calculation
You can only claim medical expenses that exceed a minimum amount. The threshold is the lesser of:
- 3% of your net income (line 23600 of your tax return)
- $2,759 (2026 fixed threshold)
Example: If your net income is $30,000, the threshold is 3% = $900 (less than $2,759, so use $900). If you spent $2,500 on eligible medical expenses, you can claim $2,500 − $900 = $1,600. The federal credit is 15% of $1,600 = $240.
You do not have to claim only the calendar year's expenses. You can choose any 12-month period ending in the tax year. If you had a large expense (like dentures) in November of last year, you could claim from November of last year to October of this year — putting that expensive month at the start of the window and potentially maximising the claim. Tax software can help you find the optimal 12-month period.
What Is Eligible
✅ Generally eligible
- Prescription drugs and medications
- Dental work (fillings, crowns, extractions, dentures) — not covered by CDCP
- Eyeglasses, contact lenses, and laser eye surgery
- Hearing aids and batteries
- Physiotherapy and occupational therapy
- Home care by a trained attendant
- Ambulance service
- Medical devices (glucometers, CPAP machines, wheelchairs)
- Modifications for disability (overlaps with HATC)
- Attendant care in a nursing home (portion above residential cost)
- Form T2201 completion fee (DTC application)
- Travel to medical appointments (over 40 km from home)
❌ Not eligible
- Amounts reimbursed by insurance
- Amounts covered by OHIP or a government plan
- Over-the-counter medications (vitamins, pain relievers unless prescribed)
- Gym memberships (even if medically recommended)
- Cosmetic procedures
- Health insurance premiums (claimed separately as a deduction)
- Regular food purchases (even special diets, with limited exceptions)
How to Claim It
Medical expenses are claimed on line 33099 (for yourself, spouse, and dependent children under 18) and line 33199 (for other dependants) of your federal tax return.
Claiming the Medical Expense Tax Credit:
You and your spouse can combine your medical expenses on one return to maximize the claim. Usually it is better to claim all expenses on the return of the lower-income spouse, because the lower the income, the lower the 3% threshold — meaning more expenses are claimable. Tax software will optimise this automatically if you enter both incomes.
Retroactive Claims
If you had significant medical expenses in prior years but did not claim them, you can request a reassessment for up to 10 years. You will need the original receipts. File a T1-ADJ (adjustment request) through CRA My Account or by mail to CRA.
Start keeping receipts today. Any pharmacy, dental, vision, or home care receipt from this point forward could reduce your taxes.
A single year of missed prescription receipts can be hundreds of dollars of unclaimed credit. The habit of saving receipts in one folder costs nothing and pays back every April.
Quick Answers
Yes, if the nearest appropriate medical service is more than 40 km from your home. You can claim the mileage (at the CRA prescribed rate, approximately $0.70/km) or actual travel costs (bus, taxi, train, or accommodation if required to stay overnight). Keep records of the date, destination, and purpose of each trip.
Partially. Retirement home and long-term care costs are complex. The portion of your fees attributable to nursing or attendant care can qualify — but not the room-and-board portion. Ask the residence management for a breakdown of how much of your monthly fee goes to nursing or attendant care. That amount may be claimable as a medical expense.
Yes. You can claim the portion not covered by your drug plan — the co-pay, deductible, or any drugs your plan does not cover. You cannot claim what your plan reimbursed. Keep your pharmacy printouts, which typically show the total charge, what the plan paid, and what you paid. Only the "patient pays" amount is eligible.