2026 Tax Credits for Medical Expenses in Canada (2026 Update)

As medical costs skyrocket in Canada, many Canadians depend on the federal medical expenses tax credit to ease the burden of costly medical expenses. Since its establishment in 1971, Canada’s Medical Expense Tax Credit (METC) has undergone many changes, particularly in the amount of eligible expenses. In this article, we explore the medical expense tax credit and new additions for 2026. Keep reading to learn how to best maximize Canada’s medical expense tax credit. 

Quick Facts: Medical Expense Tax Credit 2026

Before getting into the details, here are the key numbers for the 2026 tax year:

• Federal threshold: The lesser of 3% of your net income or $2,890

• Federal credit rate: 15% on eligible expenses above the threshold

• Ontario provincial credit rate: 5.05% (added on top of the federal rate)

• Claim period: Any 12 consecutive months ending in 2026

• Refundable supplement (low income): Up to $1,544 for qualifying Canadians

The METC is a non-refundable tax credit. That means it reduces the tax you owe, but it won't generate a refund on its own. There is a separate refundable supplement for lower-income working Canadians, which we cover further down.

What are Medical Expense Tax Credits in Canada?

The government of Canada offers tax credits for a variety of expenses, including costs associated with disabilities, caregiving, child-raising, and much more. The Canadian government also offers tax credits for those faced with high medical expenses during the year. Individuals are able to claim any amount paid for medical expenses during the calendar year, even if they weren’t paid in Canada. 

What’s New in the 2026 Medical Expense Tax Credit?

In October 2024, Ontario announced a new tax credit program would be introduced in January 2026. This new program seeks to expand the existing medical expense tax credit for 25% coverage of eligible expenses, allowing a maximum of $5,000 in tax credits for 2026. Along with covering previous eligible expenses, the government has now added IVF and fertility treatment as part of their medical expenses eligible for tax credit. 

What Medical Expenses Qualify for the Tax Credit in 2026?

As of January 2026, IVF, fertility treatment, and travel for treatment and diagnostic testing are now eligible for the medical expense tax credit. Other than these new additions, a large number of medical expenses are covered under the tax credit. Some of the more major expenses eligible include: assisted breathing devices, attendant or facility care, a bone marrow transplant, cancer treatment, power-operated chairs, hospital services, laser eye surgery, organ transplants, and much more. 

The tax credit is also available for items that were purchased for medical use or out of medical necessity, including: 

• Air conditioners, air filters, and air purifiers

• Acoustic couplers

• Crutches

• Diapers or disposable briefs 

• Furnaces

• Gulten-free food products

• Hearing aids

• Medical cannabis

• Pacemakers

• Page-turner devices

• Talking textbooks

• Vans

• Vision devices

• Vitamin B12

• Walking aids

• Water filters, water cleaners, or water purifiers

How to Claim the Medical Expense Tax Credit in Canada

First of all, keep a consistent record of your medical expenses throughout the year. Receipts, invoices, and similar documentation serve as proof of your medical expenses. If you don’t have documentation on hand, your health care provider should keep records of payment for patient care. Reach out to your health care providers and ask for any receipts of payments made for your care. 

Eligible medical expenses for yourself, your spouse or common-law partner, and dependent children under 18 are able to be claimed on line 33099 of your tax return. If your child turns 18 before the time the taxes are filed, you can still claim any expenses paid before they turned 18. 

Line 33199 is for claiming medical expenses not including those incurred from care for yourself, your spouse or common-law partner, and dependent children. If your grandchildren, your partner’s children or grandchildren, or you and your partner’s grandparents, siblings, uncles, aunts, nephews, or nieces depended on you for care, their medical expenses are claimed on line 33199. 

How to Calculate Medical Expenses for your Tax Return

• Enter the total amount you or your partner paid for eligible medical expenses in line 33099. 

• Below line 33099, you must enter one of the following amounts: 3% of your net income (not including partner’s income) or $2,635. Whichever amount is less is what should be reported. 

• Depending on which is low, subtract 3% of your net income OR $2,635 from the total amount of medical expenses reported in line 33099. Your answer will be what is put on the next line. 

A Simple Example: What Does the Credit Actually Look Like?

Here's a straightforward example to show how the math works.

Say your net income for 2026 is $50,000. Your family had $6,000 in eligible medical expenses during the year.

Step 1: Calculate the threshold 3% of $50,000 = $1,500. Since $1,500 is less than $2,890, your threshold is $1,500.

Step 2: Calculate the claimable amount $6,000 minus $1,500 = $4,500 in eligible expenses above the threshold.

Step 3: Apply the credit rate Federal credit: $4,500 x 15% = $675 Ontario provincial credit: $4,500 x 5.05% = $227.25 Total tax savings: approximately $902

The more you spend above the threshold, the more you save. That's why it pays to track every eligible expense through the year.

Tip: Which spouse should claim?

If you and your partner both have income, it's usually better for the lower-earning spouse to claim all the family's medical expenses. Here's why: the 3% threshold is based on net income. A lower income means a lower threshold, which means more of your total expenses land above it and qualify for the credit. Keep this in mind when you're filing.

Don't Forget: Travel for Medical Treatment Is Claimable

A lot of Canadians miss this one. If you had to travel to get medical care that wasn't available in your community, those travel costs may be eligible.

Here's how it works:

• Travelled 40 km or more (one way): You can claim public transportation costs like bus, train, or taxi fares.

• Travelled 80 km or more (one way): You can also claim meals and accommodation on top of transportation costs.

To qualify, the medical service must not have been reasonably available near your home, and you must have taken a direct route to get there.

If a medical practitioner confirms you needed someone to travel with you, their travel costs are claimable too. Keep your receipts, mileage logs, and any written confirmation from your doctor.

Low Income and High Medical Bills? You May Qualify for Extra Money Back

The regular medical expense tax credit is non-refundable, meaning it can only reduce what you owe in tax. But there's a separate credit called the Refundable Medical Expense Supplement (RMES) that can actually put money in your pocket, even if you owe nothing.

For 2026, you may qualify if:

• You were a Canadian resident throughout the year

• You were 18 or older by December 31, 2026

• You had employment or self-employment income of at least $4,478

• Your adjusted family net income was below $55,449

The maximum supplement for 2026 is $1,544, or 25% of your eligible medical expenses above the threshold, whichever is less. It begins to phase out at 5% of combined family net income above $33,960.

You claim this on line 45200 of your federal return, using the Federal Worksheet in your tax package. Most tax software handles the calculation automatically, but many Canadians don't know this credit exists and miss it completely.

Common Mistakes to Avoid When Claiming the Medical Expense Tax Credit

• Not Keeping Records of your Medical Expenses: Whenever you pay out of pocket for your medical expenses, it’s absolutely crucial that you keep your payments documented. Without sufficient documentation, you could be unable to make claims for those expenses. 

• Ignoring Eligible Expenses: Don’t overlook any eligible expenses on your tax return. All eligible expenses need to be reported, no matter how small. This will allow you to maximize the medical expenses tax credit. 

• Incorrectly Reporting Expenses: Fill out the tax forms carefully and accurately. Double-check entries to avoid errors that could trigger audits or rejections.

• Missing the Deadline: Submit your tax return on time. Late submissions can lead to missed credits and potential penalties.

Medical Expenses That Don't Qualify

It's just as useful to know what you can't claim. Submitting ineligible expenses won't result in a penalty, but the CRA will simply remove them. Here are common ones people try to include that don't qualify:

• Over-the-counter medications, even if a doctor recommended them (with limited exceptions like vitamin B12 for pernicious anemia)

• Gym memberships and fitness programs

• Cosmetic procedures done for aesthetic reasons, such as teeth whitening, face lifts, or liposuction

• Organic food or general supplements not prescribed for a specific medical condition

• Massage therapy without a doctor's prescription

• Premiums your employer pays on your behalf for group benefits (only the portion you pay yourself counts)

A quick rule of thumb: if a prescription or medical certification is required to obtain it, it likely qualifies. If it's something you'd buy for general wellness or appearance, it probably doesn't.

Can You Claim Private Health Insurance Premiums?

Yes, and this is one of the most commonly overlooked eligible expenses in Canada.

If you pay premiums for a private health, dental, or drug plan, those amounts count as eligible medical expenses. This includes premiums deducted from your paycheque, as long as your employer doesn't cover the full cost. You can only claim the portion you paid yourself.

If you're unsure how much you contributed, check your T4. Box 85 shows the amount of employee-paid premiums for private health services plans, and that number goes directly into your medical expense claim.

If you don't have employer coverage and pay for a plan on your own, every dollar of those premiums is eligible.

This is one of the practical reasons to hold a private health insurance plan. The premiums don't just protect your health — they can also reduce what you owe at tax time. Not sure what coverage makes sense for you? Get a free quote here.

Ontario Seniors: There's an Extra Credit Available

If you're an Ontario resident who turned 70 or older by December 31, 2026, you may be eligible for an additional refundable provincial credit on top of the regular METC.

This credit equals 25% of eligible medical expenses paid in the year, on up to $6,000 in expenses. The maximum credit per family unit is $1,500. Unlike the standard federal METC, this one is refundable, so you can receive it even if you don't owe any provincial tax.

The credit is reduced by 5% for every dollar of family net income above $35,000, and it phases out entirely at $65,000 in combined family net income.

This is separate from the federal credit and can be claimed alongside both the regular Ontario and federal medical expense credits. If you or a family member qualifies, make sure your tax software is set up to capture it. If you're also managing ongoing health costs as you age, a guaranteed acceptance health plan can help reduce how much you're paying out of pocket in the first place.

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By working with HealthQuotes, you receive quick, no-obligation quotes for the health insurance plans that fit your needs, along with expert guidance to help you along your journey. We’ll find a plan that aligns with your budget and caters to your family’s unique health needs and preferences. Ready to get started? Start here!

Frequently Asked Questions

What is the medical expense tax credit threshold for 2026 in Canada?

For the 2026 tax year, the federal threshold is the lesser of 3% of your net income or $2,890. You can only claim eligible medical expenses that exceed this threshold.

Which spouse should claim medical expenses in Canada?

In most cases, the lower-income spouse should claim the family’s medical expenses. Since the 3% threshold is based on net income, a lower income means a lower threshold—allowing more expenses to qualify for the credit.

Can I claim private health insurance premiums as a medical expense in Canada?

Yes. Premiums you personally pay for a private health, dental, or drug plan are eligible medical expenses.

• You can only claim the portion you paid yourself

• Amounts covered by your employer are not eligible

• Check Box 85 on your T4 for the correct amount

What is the Refundable Medical Expense Supplement in Canada?

The Refundable Medical Expense Supplement (RMES) is a separate credit for working Canadians with low incomes and high medical expenses.

• Maximum for 2026: $1,544

• It is refundable, meaning you can receive money back even if you owe no tax

• Claimed on line 45200 of your federal return

• Requires at least $4,478 in employment income to qualify

Can I claim travel expenses for medical treatment on my Canadian taxes?

Yes, if the medical care you need is not available locally:

• 40 km+ (one way): You can claim transportation costs

• 80 km+ (one way): You can also claim meals and accommodation

What medical expenses are not covered by the CRA tax credit?

Common ineligible expenses include:

• Over-the-counter medications (with limited exceptions)

• Gym memberships

• Cosmetic procedures for aesthetic purposes

• Organic food

• Massage therapy without a prescription

• Premiums paid by your employer

Can I claim medical expenses from a previous year on my 2026 tax return?

Yes. You can claim expenses from any 12-month period ending in 2026, as long as you haven’t claimed them before. This allows you to include eligible expenses from late 2025 in your 2026 return.