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 roughly $91,967 (where 3% would surpass $2,759), the threshold caps at the fixed $2,759 — meaning higher-income individuals have a fixed ceiling rather than a growing one. At lower and middle income levels where 3% of net income works out to less than $2,759, the percentage-based threshold applies instead.
| Item | Amount |
|---|---|
| Net income (line 23600) | $68,000 |
| 3% of net income | $2,040 |
| Fixed 2025 threshold | $2,759 |
| Applicable threshold (lesser of the two) | $2,040 |
| Total eligible medical expenses | $7,500 |
| Expenses above threshold | $5,460 |
| Federal METC (15% × $5,460) | $819 |
Note how the two thresholds interact: at $68,000 of net income, 3% ($2,040) is lower than the $2,759 ceiling, so the smaller percentage-based figure applies. A higher earner — say $110,000 in net income, where 3% works out to $3,300 — would instead use the fixed $2,759 threshold, since it's the lesser amount. Higher earners benefit from the ceiling; most low- and middle-income filers use the 3% calculation.
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 | Transportation costs if the nearest available medical care is over 40 km away (one-way); if over 80 km, meals and accommodation may also be claimed at CRA's prescribed rates |
| Attendant care | Home care for a person with a severe disability — note this can interact with the Disability Tax Credit, so amounts should not be double-counted between the two claims |
Only the unreimbursed portion of any expense is eligible. If your employer's group benefits plan covered $800 of a $1,200 dental bill, only the $400 you paid out of pocket can be claimed — amounts reimbursed through a non-taxable employer plan must be excluded entirely.
Medical expenses are claimed on Schedule 1 of your T1 return: Line 33099 for yourself, your spouse or common-law partner, and dependent children, and Line 33199 for other dependants (parents, adult children, siblings, etc.), which is capped at a maximum claim of $10,000 per dependant for 2025. If you discover you missed an eligible expense in a prior year, you can request an adjustment to returns from as far back as the past 10 years using a T1-ADJ form.
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.
Alberta doesn't have a stand-alone provincial medical expense credit the way some other provinces structure theirs. Instead, Alberta applies its own provincial tax rate to the same eligible medical expenses calculated on your federal return, adding to your total relief on top of the federal 15% METC. Understanding how the federal and Alberta provincial credits interact together is part of getting your total refund right.
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. As your personal tax accountant in Calgary, Swift Accounting reviews your medical expenses as part of every engagement to ensure every qualifying dollar is captured. View our full Calgary tax services or book a consultation to discuss your tax situation.
