Medical Expense Tax Credit Rules (2026)

The Medical Expense Tax Credit (METC) is a non-refundable federal tax credit for eligible medical expenses paid by a taxpayer for themselves, their spouse, and certain dependants. Only expenses above a threshold qualify: the lesser of $2,814 (2026) or 3% of net income. The threshold is per-claimant, not per-expense, so combining a family’s expenses on one return often produces a larger credit.

How the METC works

Step-by-step calculation:

1. Total all eligible medical expenses paid in any 12-month period ending in the tax year.
2. Subtract the threshold: lesser of $2,814 (2026) or 3% of the claimant’s net income.
3. Multiply the excess by 15% (the federal lowest non-refundable credit rate). This is the federal METC.
4. Provincial METC is calculated similarly using provincial thresholds and rates, generally adding 5% to 11% of the excess.

The 12-month rule

Eligible expenses can be claimed from any 12-month period ending in the tax year, not just the calendar year. This flexibility allows shifting major medical expenses (orthodontics, fertility treatment, hearing aids) into a single claim period for maximum credit.

Example: A family has $3,000 of expenses in March 2025 and $2,000 in November 2026. By choosing the 12-month period December 2025 to November 2026, they can claim $5,000 of total eligible expenses on their 2026 return — both the November 2026 expenses and the March 2025 expenses (since the 12-month period spans both).

Which spouse should claim

The lower-income spouse usually produces a larger METC because the 3% of net income threshold is smaller. Example:

The lower-earning spouse generates $3,800 of qualifying expenses versus $2,186 for the higher earner. At 15% federal credit, that’s $570 versus $328 — a $242 difference for choosing the right claimant.

Eligible expenses

Common eligible expenses include:

• Prescription medications
• Dental services and orthodontics
• Eye exams, glasses, contact lenses, laser eye surgery
• Hearing aids and batteries
• Medical practitioners (doctors, dentists, optometrists, physiotherapists, chiropractors, etc.)
• Hospital services and private rooms
• Travel for medical care more than 40 km from home (and 80 km for accommodation)
• Insulin, syringes, and diabetic supplies
• Premiums to private health insurance plans (excluding portion covering non-medical items)
• Care for a person with disability tax credit approval
• Fertility treatments and prescription contraceptives
• Wheelchairs, walkers, hospital beds, and other assistive devices

Common ineligible expenses

• Cosmetic procedures not medically required
• Over-the-counter medications without prescription
• Health club memberships
• Vitamins and supplements (with limited exceptions)
• Expenses reimbursed by insurance

Travel expenses

Medical travel expenses are eligible when the patient must travel at least 40 km one way to access medical services not available locally. Eligible costs include public transit, taxi, vehicle expenses (at the simplified rate or actual), and accommodation if the round trip exceeds 80 km.

METC for a dependant

Medical expenses for a dependant relative (child, grandchild, parent, grandparent, brother, sister, uncle, aunt, niece, or nephew) can be claimed by the supporting taxpayer on line 33199. The dependant must be Canadian resident at any time in the year and must have been dependent on the taxpayer for support. The dependant’s net income reduces the eligible amount of expenses.

Disability supplement

Approval for the Disability Tax Credit unlocks additional eligible medical expenses including attendant care, group home costs, and certain therapies. The METC and DTC are separate but complementary credits; both may apply for individuals with severe disabilities.