The Medical Expense Tax Credit is a non-refundable credit for out-of-pocket medical expenses exceeding the lesser of 3% of your net income or $2,759 (2025 federal threshold).
Eligible expenses
- Prescription drugs and most medical devices
- Dental and vision care (beyond what insurance covers)
- Hospital and long-term care
- Travel costs for medical reasons (40km+ one-way)
- Private insurance premiums for medical coverage
- Fertility treatments, mobility equipment, hearing aids
Spousal optimization
Claim medical expenses on whichever spouse has lower net income, the threshold is lower, so more of the expenses qualify. You can claim for any 12-month period ending in the tax year, which helps when timing large medical events across calendar years.