For many Canadians, healthcare costs can add up quickly—especially when those expenses aren’t covered by insurance. If you or your family face ongoing medical bills, it’s important to know that the Medical Expense Tax Credit (METC) could help ease some of the financial burden.
In this post, we’ll walk you through how the METC works, what you can claim, and why it’s worth exploring—especially if you’re also eligible for the Disability Tax Credit (DTC).
What is the Medical Expense Tax Credit?
The Medical Expense Tax Credit is a non-refundable tax credit available through the Canada Revenue Agency (CRA). It allows individuals to claim certain medical expenses and reduce the amount of tax they owe. You can claim expenses for yourself, your spouse or common-law partner, and eligible dependants.
You’re allowed to pick any 12-month period that ends in the tax year you’re filing for—as long as the expenses haven’t been claimed before. This means you can choose the timeframe that gives you the biggest benefit.
Who Can Claim the METC?
To qualify, your medical expenses need to exceed the lesser of:
- A fixed dollar threshold (which changes annually), or
- 3% of your net income
Once your total expenses pass that threshold, you can apply the credit to lower your taxes.
Some commonly claimed expenses include:
- Prescription medications
- Dental services and orthodontics
- Eye exams and prescription glasses
- Hearing aids
- Walkers, wheelchairs, and prosthetics
- Renovations to make your home accessible
- Travel costs for medical care (when treatment isn’t available locally and meets distance rules)
For a full list of eligible expenses, visit the CRA website: Eligible Medical Expenses
How to Claim It
To claim the credit:
- Keep your receipts and documentation for any qualifying expenses.
- Choose the best 12-month period ending in the current tax year.
- Calculate the total of your eligible expenses and subtract the minimum threshold.
- Include the amount on your tax return to reduce the taxes you owe.
You can also claim expenses for dependants, including children, parents, or grandparents who rely on you for financial support.
What About the Disability Tax Credit (DTC)?
While the METC covers a wide range of medical expenses, those with prolonged physical or mental impairments may also qualify for the Disability Tax Credit (DTC).
The DTC is a non-refundable credit designed to support individuals who face significant challenges in daily life due to a severe and prolonged impairment. A medical practitioner must certify your condition, and the CRA must approve your application.
According to the CRA’s 2024 Disability Advisory Committee report:
- 96% of applications for individuals who are severely or very severely disabled were eventually approved.
- Only 11% of people with disabilities completed the full process—applying, receiving approval, and claiming the credit.
- Even among the most severely disabled, only 25% fully accessed this benefit.
These stats show just how underused this valuable credit is. You can read more in the full report here: 2024 Disability Advisory Committee Report
Why This Matters
If you or a loved one are living with high medical costs or a long-term health condition, the METC and DTC could result in meaningful tax relief. In some cases, they can also open the door to other supports like the Registered Disability Savings Plan (RDSP).
If this sounds like something you or a family member might qualify for, it’s a good idea to speak with a licensed tax professional or accountant. They can help you determine eligibility, calculate your claim accurately, and make sure you’re taking full advantage of what’s available.
Disclaimer: This post is intended for general educational purposes only and should not be considered tax or financial advice. We recommend consulting with a qualified tax professional for guidance specific to your personal situation. We are not liable for any actions taken based on the information provided here.
Sources:
Canada Revenue Agency. Eligible Medical Expenses You Can Claim on Your Tax Return. Government of Canada, 2024, https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/lines-33099-33199-eligible-medical-expenses-you-claim-on-your-tax-return.html.
Canada Revenue Agency. Guide RC4065: Medical Expenses. Government of Canada, 2024, https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4065.html.
Canada Revenue Agency. Income Tax Folio S1-F1-C1: Medical Expense Tax Credit. Government of Canada, 2024, https://www.canada.ca/en/revenue-agency/services/tax/technical-information/income-tax/income-tax-folios-index/series-1-individuals/folio-1-health-medical/income-tax-folio-s1-f1-c1-medical-expense-tax-credit.html.
Canada Revenue Agency. Disability Tax Credit (DTC). Government of Canada, 2024, https://www.canada.ca/en/revenue-agency/services/tax/individuals/segments/tax-credits-deductions-persons-disabilities/disability-tax-credit.html.
Canada Revenue Agency. Who Is Eligible for the Disability Tax Credit (DTC). Government of Canada, 2024, https://www.canada.ca/en/revenue-agency/services/tax/individuals/segments/tax-credits-deductions-persons-disabilities/disability-tax-credit/eligible-dtc.html.
Canada Revenue Agency. How to Apply for the Disability Tax Credit (DTC). Government of Canada, 2024, https://www.canada.ca/en/revenue-agency/services/tax/individuals/segments/tax-credits-deductions-persons-disabilities/disability-tax-credit/how-apply-dtc.html.
Canada Revenue Agency. Disability Advisory Committee: 2024 Full Report. Government of Canada, 2024, https://www.canada.ca/en/revenue-agency/corporate/about-canada-revenue-agency-cra/disability-advisory-committee/2024-full-report.html.