Medical expenses can add up quickly, and the good news is that the Canada Revenue Agency allows you to recover a portion of those costs through the Medical Expenses Tax Credit (METC). Whether you paid for prescriptions, dental work, vision care, or specialized equipment, understanding how this credit works can put real money back in your pocket at tax time. This guide covers everything you need to know about the METC for 2025, including what qualifies, how to calculate your claim, and strategies to maximize your refund.
The Medical Expenses Tax Credit is a non-refundable federal tax credit available to Canadian taxpayers. It equals 15% of your eligible medical expenses — meaning the portion of your total medical costs that exceeds a minimum threshold set by the CRA each year.
Because it is non-refundable, the credit can reduce your federal income tax owing to zero, but it cannot generate a refund on its own. However, it still delivers meaningful tax relief for families with significant health costs.
In addition to the federal credit, every province and territory provides its own parallel medical expense credit calculated on the same eligible expenses. Ontario, Alberta, British Columbia, and other provinces each apply their own provincial rate, so your combined federal and provincial savings are typically higher than the federal credit alone.
You cannot claim every dollar of medical expenses. The CRA requires that you subtract a minimum threshold before applying the 15% rate. For 2025, that threshold is the lesser of:
Only expenses above that threshold are eligible for the credit.
Example: Your net income is $80,000. Three percent of $80,000 equals $2,400, which is less than $2,759, so your threshold is $2,400. If your total eligible medical expenses for the year are $5,000, then your claimable amount is $5,000 minus $2,400, which equals $2,600. Your federal credit is $2,600 multiplied by 15%, which equals $390.
The $2,759 cap means that taxpayers with net income below roughly $91,967 will use the 3% calculation. Once your income exceeds that level, your threshold is capped at $2,759 regardless of how much higher your income climbs.
The CRA's list of eligible medical expenses is broad. The following are among the most commonly claimed qualifying costs:
When specialized medical treatment requires you to travel at least 40 kilometres from your home, transportation costs qualify. If the trip exceeds 80 kilometres, you may also claim meals and accommodation using either actual costs or CRA's simplified flat-rate amounts.
Persons diagnosed with celiac disease by a medical practitioner can claim the price premium paid for gluten-free food products compared to their regular equivalents. You will need documentation from your doctor to support this claim.
Cannabis products do qualify as an eligible medical expense when they are prescribed by an authorized medical practitioner and purchased from a licensed producer.
Not every health-related purchase makes the list. The following expenses are commonly misunderstood and do not qualify:
One of the most powerful and underused features of the METC is that you are not restricted to claiming expenses from January 1 to December 31 of the tax year. The CRA allows you to claim expenses for any 12-month period that ends within the tax year you are filing.
This creates a planning opportunity. If you had a large dental procedure in late 2024 and then significant prescription costs in early 2025, you can combine both into a single claim on your 2025 return by selecting a 12-month period such as April 1, 2024 to March 31, 2025.
Grouping expenses this way allows you to exceed the threshold more easily and generate a larger credit than you would by splitting the costs across two separate returns. Review your receipts before filing and identify the 12-month window that captures the highest concentration of qualifying expenses.
The METC extends beyond your own expenses. You can claim eligible medical costs paid for:
For dependants who are 18 or older — such as adult children or elderly parents — the rules differ slightly. Their expenses are claimed on a separate line of your return, and the threshold calculation uses their net income rather than yours.
Key strategy: For the core family claim covering you, your spouse, and children under 18, it is almost always better to have the lower-income spouse make the claim. Because the threshold is 3% of the claimant's net income, a lower income produces a smaller threshold, which means more of your total family medical expenses clear the bar and qualify for the credit.
For example, if one spouse earns $45,000 and the other earns $90,000, the threshold for the lower-income spouse is $1,350 (3% of $45,000) compared to $2,759 for the higher earner (capped at the maximum). Claiming $6,000 in family medical expenses on the lower-income return yields an eligible amount of $4,650, while the same expenses on the higher-income return would yield only $3,241 of eligible expenses.
At Swift Accounting Calgary, we help families model both scenarios every year — the difference in the credit can be meaningful, particularly for households with above-average health costs.
The CRA does not require you to submit receipts with your return, but you must keep all supporting documentation for at least six years in case of a review or audit. For each expense, retain the original receipt showing the provider's name, date of service, and amount paid. For travel claims, keep a mileage log and any hotel or meal receipts. For celiac disease food premiums, maintain a letter from your physician and a comparison of gluten-free versus standard product pricing.
Organized records not only protect you during a CRA review but also make it far easier to evaluate different 12-month windows and ensure you are capturing every qualifying dollar.
The METC rewards careful planning. Combined with provincial credits, the right 12-month period, the lower-income spouse strategy, and a thorough review of qualifying expenses, many Canadian families can recover hundreds or even thousands of dollars they would otherwise leave unclaimed. If your household medical costs are significant or your situation is complex — multiple dependants, disability supports, or fertility treatments — working with a professional ensures you claim every dollar the law allows.
The team at Swift Accounting in Calgary works with individuals and families across Alberta to optimize medical expense claims as part of a comprehensive personal tax strategy. Contact us today to book a consultation and make sure your 2025 return reflects everything you are entitled to.
Yes, but the rules differ from claiming for a spouse or young child. If your parent or grandparent is financially dependent on you, you can claim their eligible medical expenses on a separate dependant line. The threshold for that line is calculated using their net income, not yours. You will need to confirm they meet the CRA's definition of a dependant, which generally means their income is low enough that they rely on you for basic needs.
These are two separate credits. The Medical Expenses Tax Credit is based on actual out-of-pocket expenses you paid in a given period and varies year to year based on what you spent. The Disability Tax Credit (DTC) is a fixed-amount credit available to individuals with a severe and prolonged physical or mental impairment, certified by a qualified medical practitioner on Form T2201. Many people who qualify for the DTC can also claim the METC, and in some cases they can stack both credits on the same return.
Yes. To qualify under the METC, a drug must be prescribed by a medical practitioner and dispensed by a licensed pharmacist. Over-the-counter medications do not qualify, even if a doctor verbally recommended them. Insulin is a notable exception — it qualifies even without a formal written prescription because it is specifically listed in the CRA's eligible expenses schedule.
Yes, provided the trip is at least 40 kilometres one way from your home and the treatment you are travelling for is not available closer to where you live. Eligible travel costs include vehicle expenses (using CRA's per-kilometre rate or actual costs), public transit, and for trips over 80 kilometres, meals and accommodation. You should keep a travel log, receipts, and documentation from your medical provider confirming why local treatment was not an option.
Our Calgary team handles personal tax, corporate returns, GST/HST, payroll, and bookkeeping.
Book a Consultation