Medical Expense Tax Credit Calculator

The federal medical expense tax credit is a non-refundable credit, calculated at the lowest federal tax rate, on eligible medical expenses above a threshold. That rate is 14% for 2026 (14.5% for 2025, after the lowest rate was cut from 15% on 1 July 2025). The threshold is the lesser of 3% of your net income (line 23600) or a dollar amount that the Canada Revenue Agency indexes every year; for the 2025 tax year it was $2,834. Check the CRA page for lines 33099 and 33199 for the year you are filing.

How to use it. First work out the amount above your threshold: add up eligible expenses for any 12-month period ending in the tax year (including premiums you paid to a private health services plan, such as the employee share of group premiums), subtract the threshold, and enter the result. Keep 14 for a 2026 federal claim (14.5 for 2025). Quebec residents also claim a provincial credit on their Quebec return with its own rate and a threshold based on family income; enter Quebec figures in a separate run.

Formula. Tax reduction = amount above the threshold x credit rate.

Worked example (illustrative). Net income $60,000; 3% is $1,800, which is less than $2,834, so the threshold is $1,800. Expenses of $4,500 (premiums $1,800, dental $1,900, prescriptions $800) exceed it by $2,700. Federal credit = $2,700 x 14% = $378. Your province or territory adds its own credit at its own rate.

Limits. The credit is non-refundable: it only reduces tax you owe. Amounts reimbursed by a plan are not eligible. The lower-earning spouse often gets the larger credit because 3% of a lower income is smaller. See the worked tax credit guide for the details.