The Medical Expense Tax Credit (METC) is a non-refundable federal tax credit available to Canadians who incur significant eligible medical expenses in a year. It doesn't give you back a dollar-for-dollar refund on what you spent, but it does reduce your federal tax by 15% of your qualifying medical expenses above a minimum threshold. For high-expense years — a major dental procedure, a serious illness, expensive medications — it can result in meaningful tax savings. We recommend working with our personal tax professionals team.
The credit is claimed on Schedule 1 of your federal T1 return, with supporting details on the Medical Expenses section. You do not submit receipts with your return but must keep them for at least six years in case CRA requests verification.
The METC applies only to medical expenses that exceed the lesser of:
For example, if your net income is $70,000, your threshold is 3% × $70,000 = $2,100. If your eligible medical expenses total $6,000, you can claim the credit on $6,000 − $2,100 = $3,900. The federal credit is 15% of $3,900 = $585 in reduced federal tax.
If your net income exceeds $87,833, the threshold caps at $2,635 — meaning higher-income individuals have a fixed floor rather than a growing one. At lower income levels where 3% of net income is less than $2,635, the percentage-based threshold applies.
CRA maintains an extensive list of eligible medical expenses. Common qualifying expenses include:
| Category | Examples |
|---|---|
| Dental care | Fillings, crowns, dentures, orthodontics (not purely cosmetic) |
| Prescription medications | Drugs requiring a prescription; fertility drugs |
| Vision care | Eyeglasses, contact lenses, laser eye surgery |
| Paramedical services | Physiotherapy, occupational therapy, psychologist fees |
| Hearing aids & devices | Hearing aids, cochlear implants, and related accessories |
| Disability-related devices | Wheelchairs, crutches, hospital beds, power lift chairs |
| Medical travel | Travel over 40 km one-way for medical treatment not available locally |
| Attendant care | Home care for a person with a severe disability |
Not every health-related expense is an eligible medical expense for CRA purposes. Commonly excluded items include:
You can claim eligible medical expenses for yourself, your spouse or common-law partner, and your dependent children (under 18 at some point in the year). For other dependants (adult children, parents, siblings, etc.) who depended on you for support, there is a separate Eligible Dependant Medical Expense line with its own calculation.
Because the threshold is based on net income, it's often tax-efficient for the lower-income spouse to claim all eligible medical expenses for the family. Their 3% threshold is lower, meaning more of the expenses exceed the floor and qualify for the credit. Run the math both ways to see which approach yields the larger credit for your household.
Medical expense claims require careful record-keeping and a sound understanding of what qualifies. Many Calgarians miss significant credits because they don't realize certain expenses are eligible, or because they claim in the wrong year. Swift Accounting reviews your medical expenses as part of every personal tax engagement to ensure every qualifying dollar is captured. Book a free consultation to discuss your tax situation.