Medical expense tax credit in Canada: a worked example with premiums, dental and drugs

The federal medical expense tax credit (METC) gives you a non-refundable credit at the lowest federal tax rate on eligible medical expenses above a threshold. For 2026 that rate is 14%; it was 14.5% for 2025, because the lowest federal rate was cut from 15% to 14% from 1 July 2025. The threshold is the lesser of 3% of your net income or a fixed dollar amount that the Canada Revenue Agency indexes every year; for the 2025 tax year the CRA set it at $2,834. You claim expenses paid in any 12-month period ending in the tax year, for yourself, your spouse or common-law partner and your children under 18 on line 33099, and for other dependants on line 33199. Premiums you pay for private health and dental plans, including your share of group premiums deducted from your pay, count as eligible expenses. Your province or territory adds its own credit at its own rate, and Quebec residents claim a separate Quebec credit with different rules.

This guide is part of the plan choice checklist guide. Use the medical expense credit calculator with your own numbers. The 2026 dollar threshold is published by the CRA for 2026 returns; check it before filing.

What counts as an eligible expense

Commonly eligible, when paid by you and not reimbursed:

• Premiums to a private health services plan: individual health and dental plans, your share of group health and dental premiums, and travel medical insurance premiums
• Prescription drugs dispensed by a pharmacist
• Dental services, including what you pay under the Canadian Dental Care Plan's co-payment
• Eyeglasses and contact lenses prescribed by an optometrist or physician
• Services of licensed practitioners such as physiotherapists, psychologists and, in provinces where they are recognized as medical practitioners, others such as chiropractors or massage therapists
• Ambulance fees
• Many medical devices and some home modifications for eligible persons

Not eligible: amounts reimbursed by any plan, cosmetic procedures done purely for appearance, gym memberships, over-the-counter vitamins without a prescription in most cases, and premiums or taxes for provincial health plans (such as the Ontario Health Premium). Check the CRA's list of eligible expenses, as practitioner rules depend on your province.

Step-by-step worked example

A couple in Ontario, using the 2025 dollar threshold of $2,834 and the 2026 credit rate of 14% for illustration. Partner A has net income of $95,000; partner B has net income of $38,000. Their eligible expenses for the calendar year (illustrative):

If Partner A claims:

• 3% of $95,000 = $2,850; the dollar threshold of $2,834 is lower, so threshold = $2,834
• Amount above threshold: $4,240 - $2,834 = $1,406
• Federal credit: 14% x $1,406 = $196.84

If Partner B claims:

• 3% of $38,000 = $1,140, lower than $2,834, so threshold = $1,140
• Amount above threshold: $4,240 - $1,140 = $3,100
• Federal credit: 14% x $3,100 = $434

Partner B should claim, provided B has enough federal tax payable to use a $434 non-refundable credit. At $38,000 of net income B normally does; if not, the unused part is lost. Either spouse may claim the family's expenses on line 33099; it does not matter who paid.

Choosing the 12-month period

You do not have to use the calendar year. Any 12-month period ending in the tax year works, as long as you did not claim the same expenses before. Example: if a large dental bill was paid in November 2025 and you had more costs in March to October 2026, you could claim a period from November 2025 to October 2026 on your 2026 return, provided you did not claim the November 2025 bill on your 2025 return. Group expenses into the period that gives the most above the threshold.

Other dependants (line 33199)

For a dependant other than a spouse or minor child, such as an adult child or a parent who depends on you, the threshold is calculated on the dependant's net income. Keep separate totals for each dependant.

Provincial credits and Quebec

Each province and territory has its own medical expense credit, calculated with its own rate and usually its own dollar threshold, claimed on the provincial form with your federal return. Quebec residents file a separate Quebec return: the Quebec credit for medical expenses uses a threshold based on family income and its own rate, and there is a Quebec refundable credit for medical expenses for lower-income workers. In Quebec, remember that the employer's share of group health premiums is a taxable benefit for Quebec tax purposes, as noted in Quebec's mandatory drug insurance. Check Revenu Québec's guide for the current lines, rates and how RAMQ public plan premiums are handled.

Refundable medical expense supplement

Low-income workers may also qualify for the federal refundable medical expense supplement, which pays a benefit even if you owe no tax, based on earned income and the medical expenses you claim. The CRA sets its income limits each year.

Records to keep

• Receipts showing who was paid, for whom and the date
• Plan statements (explanation of benefits) showing what was reimbursed
• Payroll stubs or a letter from your employer showing your share of group premiums
• Prescriptions for glasses and devices where required

You do not send receipts with an online return, but the CRA may ask for them.

Mistakes to avoid

• Claiming the amount before reimbursement. Only your unreimbursed share counts.
• Claiming on the higher earner's return by habit. The lower earner usually gets more.
• Forgetting group premiums. Your payroll deductions for health and dental are eligible.
• Claiming provincial health premiums. They are not eligible.

When to get advice

For large claims involving attendant care, home modifications or the disability tax credit, the interactions are complex. A tax professional or the CRA can confirm what is eligible.

Frequently asked questions

Can I claim my dental plan premium if my employer deducted it from pay?

Yes, the part you paid is eligible. The part your employer paid is not your expense.

Can I claim expenses for my parent?

Yes, if they depend on you for support, on line 33199, with the threshold based on their income.

Does the Canadian Dental Care Plan co-payment count?

Yes, the amount you pay yourself is eligible; the part CDCP pays is not.

Sources

• Canada Revenue Agency — lines 33099 and 33199, eligible medical expenses and the yearly threshold
• Revenu Québec — Quebec credit for medical expenses
• Government of Ontario — Ontario Health Premium and Ontario credits