Overview
Most Canadians know they can claim prescription drugs and dental bills under the Medical Expense Tax Credit (METC). What almost nobody knows is that the CRA’s list of eligible expenses runs to over 100 categories — and many of the most valuable ones go unclaimed every year. The credit is 15% federally (plus provincial amounts) on eligible expenses above the 3% of net income threshold.
Do I Qualify?
- You paid eligible medical expenses for yourself, your spouse, or qualifying dependants
- Your total claim can get above the 3% of net income threshold or annual cap
- You can choose the lower-income spouse or a better 12-month claim period to improve the result
- You kept receipts and supporting records for the expenses you want to claim
The 3% Threshold
You can claim eligible expenses exceeding the lesser of:
- 3% of your net income, OR
- $2,759 (2025 threshold, adjusted annually)
For a person with $60,000 net income, the threshold is $1,800. For a person with $100,000 net income, the threshold is $2,759 (the cap). Everything above the threshold generates a 15% federal credit (plus provincial).
Key optimization: Always have the lower-income spouse claim all family medical expenses. Their threshold is lower, so more expenses exceed it and generate a credit.
Commonly Missed Eligible Expenses
Travel and Accommodation
- Travel to medical appointments — If the nearest facility offering required treatment is more than 40 km away, you can claim travel costs (mileage at the CRA rate, or actual transportation costs). If over 80 km, you can also claim meals and accommodation.
- Ambulance costs — Ground and air ambulance to hospital.
Vision and Dental
- Laser eye surgery (LASIK) — Fully eligible.
- Contact lenses and prescription eyeglasses — Eligible.
- Orthodontics — Braces, retainers.
- Dental implants — Eligible.
Disability and Mobility
- Wheelchair, walker, crutches, canes — Eligible.
- Hearing aids and batteries — Eligible.
- Service animals — Purchase, training, and ongoing care costs for a certified service animal.
- Bliss boards and Braille learning materials — Eligible.
- Home renovations for disability — Qualifying renovations (grab bars, ramps, widened doorways, walk-in showers, stairlifts) are eligible under the METC and potentially under the Home Accessibility Tax Credit (HATC) — claiming under HATC is generally more valuable due to the higher limit.
Reproductive and Mental Health
- Fertility treatments — IVF, egg freezing, sperm donation, and related medical procedures.
- Surrogacy expenses — Legal and medical costs for the surrogate (with restrictions).
- Psychologist and psychotherapist fees — Eligible (important: a counsellor without a regulated designation may not qualify; check CRA’s list).
- Addiction treatment — Residential treatment program costs.
Other
- CPAP machine and supplies — Sleep apnea devices and masks.
- Orthopedic shoes — Must be prescribed by a medical practitioner and custom-made (not standard orthopedic footwear).
- Gluten-free food — If a medical practitioner certifies celiac disease, you can claim the incremental cost above regular food.
- Medical cannabis — Authorized by a medical document from a licensed producer.
Optimization Tips
- Choose a 12-month period — not just the calendar year. You can claim any consecutive 12-month period ending in the tax year. If you had a large medical expense in January of one year and December of the previous year, claiming the period Dec–Nov may let you combine them above the threshold.
- Pool all family expenses. Claim all expenses for you, your spouse, and your dependants (children, parents) on one return — whichever spouse has the lower income.
- Keep all receipts. You do not attach them to your return, but CRA can request them at any time.
Legal Basis
- Income Tax Act (Canada), Section 118.2 — Medical expense tax credit.
- CRA Publication RC4065 — Medical Expenses (updated annually).
- Income Tax Regulations, Section 5700 — Prescribed devices and equipment.
Frequently Asked Questions
Is LASIK eye surgery eligible for the Medical Expense Tax Credit?
Yes, laser eye surgery (LASIK) is a fully eligible medical expense under the METC. Unlike purely cosmetic procedures, vision correction surgery is considered a medical intervention. Keep the clinic’s receipt showing the total amount paid and the date of the procedure.
Can I claim travel costs to drive to a medical appointment?
Yes, if the nearest facility offering your required treatment is more than 40 km from your home. You can claim the CRA per-kilometre rate for the round trip. If you travel more than 80 km, you can also claim meals and accommodation costs. Keep a mileage log with dates, destinations, and the reason medical care was not available closer to home.
Are dental implants and orthodontic braces eligible?
Yes. Dental implants, crowns, fillings, and orthodontic treatment (braces and retainers) are all eligible medical expenses under the METC. Keep all receipts from your dentist and orthodontist — you do not need to attach them to your return, but CRA may request them later.
Can I claim gluten-free food if I have celiac disease?
Yes, but only the incremental cost — the difference between the price of gluten-free products and the equivalent regular products. A medical practitioner must certify the celiac diagnosis. You must also keep receipts showing the specific products purchased and a log calculating the price premium above conventional equivalents.
My expenses don’t exceed the 3% threshold on their own — is there any way to still benefit?
Consider pooling family expenses. If your spouse or dependant also had medical expenses, combining everyone’s expenses on the lower-income spouse’s return may push the total above the threshold. Also consider choosing a 12-month window that captures expenses from two calendar years to maximize the total claimable amount in a single filing.