CRA Medical Expense Tax Credit 2025 & 2026 — Eligible Expenses, Claim Rates & Caps

The Medical Expense Tax Credit (METC) is a non-refundable tax credit that helps Canadians offset the cost of medical and disability-related expenses. Unlike refundable credits, the METC only reduces tax you owe — it won’t generate a refund beyond your tax payable. The federal portion is calculated at 15% of eligible expenses above the threshold, and most provinces offer an additional provincial credit on top.

2025 and 2026 Thresholds

For both tax years, the METC applies to eligible expenses exceeding the lesser of:

• 3% of your net income (line 23600), or
• $2,834 for 2025 and $2,890 for 2026

In other words, if your net income is $60,000, 3% equals $1,800 — so you’d claim expenses over $1,800. If your net income is $100,000, 3% equals $3,000, but the dollar cap limits the threshold to $2,834 (2025) or $2,890 (2026), whichever is lower. Only the amount above that threshold generates the credit.

Example (2025): $8,000 in eligible expenses on $50,000 net income. The threshold is the lesser of $1,500 (3%) and $2,834, so $1,500 applies. Claimable amount: $8,000 - $1,500 = $6,500. Federal credit at 15%: $975.

Eligible Expenses

The CRA maintains an extensive list of qualifying medical expenses under section 118.2 of the Income Tax Act. Commonly claimed items include:

• Prescription medications — drugs requiring a prescription from a medical practitioner
• Dental services — fillings, crowns, root canals, dentures, orthodontic treatment
• Vision care — prescription eyeglasses, contact lenses, and laser eye surgery (LASIK)
• Medical devices — hearing aids, wheelchairs, walkers, CPAP machines, insulin pumps
• Travel for medical care — transportation, meals, and accommodation when you must travel at least 40 km one way for medical treatment not available locally
• Private health insurance premiums — employer-paid premiums through a health or dental plan if included in your income as a taxable benefit
• Mental health services — fees paid to psychologists, psychotherapists, and counsellors
• Fertility treatments — IVF and other reproductive procedures
• Gluten-free food — the incremental cost for those with celiac disease (requires a prescription)
• Service animals — costs of acquiring, training, and caring for a trained service animal

The full list runs over 40 pages in CRA guide RC4065. When in doubt, check the CRA’s exhaustive list rather than assuming an expense doesn’t qualify.

Disability Supplement (DTC-Related)

Taxpayers eligible for the Disability Tax Credit (DTC) can also claim a supplemental medical expense amount for care that allows them to work or study. For a disabled dependant aged 18 or older, expenses claimed through this supplement must first exceed a disability supplement floor ($2,568 in 2025, $2,619 in 2026), after which additional eligible expenses up to the maximum supplement ($8,812 in 2025, $8,988 in 2026) can be claimed. This supplement is refundable, meaning it can generate a refund even if you have no tax payable — a significant advantage over the regular METC.

How to Claim

Claim medical expenses on your T1 return:

• Line 33099 — Medical expenses for yourself, your spouse or common-law partner, and your dependent children under 18
• Line 33199 — Medical expenses for other dependants aged 18 or older (parents, grandparents, adult children with disabilities)

The CRA allows you to use any unclaimed 12-month period ending in the tax year. This flexibility lets you time larger expenses strategically — for example, if you had expensive dental work in December 2024 and again in January 2025, you could choose a 12-month window that captures both, provided you have not claimed those expenses before.

Records to Keep

The CRA may ask to verify your claim. Keep:

• Pharmacy receipts and prescription details
• Dental and medical invoices showing the date, provider, type of service, and amount paid
• Proof of payment (credit card statements, cancelled cheques, receipts)
• A signed statement from your medical practitioner for travel claims indicating why travel was necessary and no equivalent service was available locally
• Insurance claim statements showing amounts your plan did not reimburse

Claims under $500 total are unlikely to be questioned, but you should keep all supporting documents for six years in case the CRA requests a review.

Lower-Income Spouse Strategy

Since the 3% threshold is based on net income, the lower-income spouse or common-law partner should claim the family’s medical expenses whenever possible. A spouse earning $40,000 has a $1,200 threshold, while the higher earner at $90,000 has a $2,700 threshold — claiming on the lower-income return can nearly double the credit for the same set of expenses.

Sources

• CRA — Lines 33099 and 33199
• CRA — RC4065 Medical Expenses
• CRA — 2025 Indexation Adjustments