Going to the doctor or dentist is already painful enough—but paying the bill? Even with Canada’s supposedly “free” healthcare, that hurts even more! But here’s the good news: The CRA lets you claim some of those costs on your taxes.
Today, I’ll walk you through 5 medical expenses you might not know you can claim to keep more money in your pocket, but first, let’s go over…
How Medical Expense Claims Work in Canada
Claiming medical expenses on your tax return is a bit tricky, but I’ll walk you through it step by step—plus, I’ll show you some smart ways to maximize your refund.
The Medical Expense Tax Credit (METC) allows Canadians to claim eligible out-of-pocket medical expenses on their tax return, reducing the tax they owe. To claim, you enter medical expenses on line 33099 or 33199 of your tax return, depending on who the expenses were for.
- Line 33099: For yourself, your spouse/common-law partner, or children under 18.
- Line 33199: For other dependants, like adult children, parents, grandparents, or siblings who rely on you for support.
You can claim only the portion not reimbursed by insurance and must subtract the lower of 3% of net income or $2,759 (for 2024).
Example 1: Simple Individual Claim
Jessica earns $50,000 of income and had $2,500 in medical expenses.
- 3% of $50,000 = $1,500
- Eligible claim: $2,500 – $1,500 = $1,000
She can claim $1,000 as a non-refundable credit, reducing her taxable income.
Later in this video, I’ll go over some advanced strategies to help families maximize their medical expense claims, but first, let’s break down some common medical expenses you can claim, starting with…
Prescribed Drugs and Medications (Including Medical Marijuana)
Prescription medications can be a major expense, but you may be able to recoup some of those costs at tax time. The Canada Revenue Agency (CRA) allows you to claim eligible prescription drugs and medications as medical expenses. These must be prescribed by a licensed medical professional and dispensed by a pharmacist. Over-the-counter medications, vitamins, and supplements—even if recommended by a doctor—are not eligible.
Even medical marijuana is covered but with conditions. You need a valid medical document from a healthcare provider and must purchase it from a licensed producer.
Example: Sarah earns $60,000 annually and spends $3,000 on prescribed medications. Her deduction calculation looks like this:
- 3% of her income: $60,000 × 3% = $1,800
- Eligible claim: $3,000 – $1,800 = $1,200
Sarah can claim $1,200 in medical expenses on her tax return. Keeping track of pharmacy receipts and prescriptions is key to maximizing your claim. Even if you only spend a few hundred dollars a year, every bit helps to reduce your taxable income.
Dental and Vision Care
For high earners, dental and vision expenses can add up quickly, but many of these costs are tax-deductible in Canada. You can claim eligible expenses for services provided by licensed professionals, including dentists, orthodontists, optometrists, and ophthalmologists.
Covered expenses include routine checkups, fillings, root canals, gum surgery, braces, and prescription eyewear. However, purely cosmetic procedures, such as teeth whitening and non-prescription sunglasses, do not qualify.
Example: Alex is a high earner, making $150,000 per year. This year, he spent $3,100 on dental work and new prescription glasses:
- Dental procedures: $2,500
- New glasses: $600
- Total medical expenses: $3,100
To determine how much he can claim, Alex must subtract the lesser of:
- 3% of his income: $150,000 × 3% = $4,500
- The set threshold amount for 2024: $2,759
Since $2,759 is the lower of the two amounts, Alex subtracts that from his total medical expenses:
- $3,100 – $2,759 = $341
👉 Pro Tip: Alex can only claim $341 as a deduction on his tax return. Higher-income earners often need large medical expenses to qualify for a claim. Consider timing major procedures within the same 12-month period to maximize deductions.
Before we go to our next expense, if tax savings are on your mind, check out our guide on 7 powerful income-splitting strategies to legally reduce your tax bill.
📩 Get your free guide—link is here:
https://blueprintfinancial.ca/income-splitting-strategies-download/
Medical Travel Expenses
If you need to travel for medical care, you may be able to claim your travel costs as a medical expense. This applies if you have to travel at least 40 km (one way) to access medical services not available near your home. If you travel over 80 km, you can also claim meals and accommodations in addition to transportation costs.
Eligible travel expenses include:
- Public transportation (bus, train, taxi, flights, etc.)
- Vehicle expenses (fuel, parking, maintenance, etc.)
- Lodging (hotel stays, Airbnb, etc.)
- Meals (when required for an extended stay)
Example: Jennifer earns $55,000 and had to travel 100 km round-trip for weekly treatments over three months, spending:
- Gas & parking: $800
- Meals & accommodations: $1,500
- Total travel expenses: $2,300
To calculate her claim:
- 3% of income: $55,000 × 3% = $1,650
- Eligible claim: $2,300 – $1,650 = $650
Jennifer can claim $650 of expenses on her tax return. If a medical practitioner certifies that you need assistance while travelling, you can also claim the travel costs for an accompanying person. Keep detailed records of your trips, including receipts and medical appointment confirmations.
Private Health Insurance Premiums
If you pay out-of-pocket for private health insurance, you may be able to deduct the premiums from your taxable income. This includes plans that cover medical, dental, vision, prescription drugs, and hospitalization. However, employer-paid premiums do not qualify unless they are included as taxable income on your T4 slip.
Premiums for self-employed individuals can also be claimed, as long as they cover eligible expenses and are not reimbursed by an employer. Family plans may allow you to claim premiums for your spouse and children, which can help maximize deductions.
Example: Mark earns $90,000 and pays $3,500 annually for private health insurance.
- 3% of income: $90,000 × 3% = $2,700
- Eligible claim: $3,500 – $2,700 = $800
Mark can deduct $800 from his taxable income. If you’re paying for a mix of private and employer-sponsored insurance, check which portion of your premiums is eligible and ensure you keep records of your payments.
Medical Devices and Equipment
Medical devices and equipment can be costly, but many of these expenses qualify as tax-deductible medical expenses. You can claim wheelchairs, hearing aids, insulin pumps, CPAP machines, prosthetics, and orthopedic braces. In some cases, home modifications, such as wheelchair ramps or stairlifts, are also eligible.
Some medical devices require a doctor’s prescription to qualify, so it’s essential to keep a record of both the prescription and the receipt. If the device requires ongoing maintenance (e.g., batteries for hearing aids or CPAP filters), these costs may also be deductible.
Example: Emily earns $65,000 and buys a CPAP machine for sleep apnea for $2,500.
- 3% of income: $65,000 × 3% = $1,950
- Eligible claim: $2,500 – $1,950 = $550
Emily can claim $550 on her return. While this amount may seem small, combining it with other medical expenses could increase her total deduction. If you’re making a large purchase for medical reasons, make sure it’s on the CRA’s list of eligible medical devices to confirm it qualifies.
Maximizing Family Medical Expenses
If you have a family, properly claiming medical expenses can make a big difference in your tax return. The Canada Revenue Agency (CRA) allows you to combine medical costs for your spouse and dependents, but knowing who should claim them can significantly impact your savings.
Let’s look at how Richard and Pauline, a Canadian couple with two children, optimized their tax return by making smart choices when filing their medical expense claims. By choosing the right person to claim, they can reduce their overall tax bill.
Richard and Pauline have a 16-year-old daughter, Jen, and a 19-year-old son, Rob. They had medical expenses of:
- Richard: $2,500
- Pauline: $2,000
- Jen (16): $1,800
- Rob (19): $1,300
- Total: $7,600
Since Jen is under 18, her expenses are combined with Richard and Pauline’s, making $6,300 eligible for line 33099. Rob’s expenses must be claimed separately on line 33199.
Pauline earns $55,000, so:
- 3% of $55,000 = $1,650
- Eligible claim: $6,300 – $1,650 = $4,650
Richard earns $42,000, so:
- 3% of $42,000 = $1,260
- Eligible claim: $6,300 – $1,260 = $5,040
Since Richard gets a higher claim, he should claim the full amount.
👉 Pro Tip: Always check who in your family has the lowest income—they may get a bigger deduction! By organizing receipts and choosing the right person to claim, you can maximize tax savings when filing your return.
Medical expenses, tax deductions, and wealth-building strategies all come down to one thing: making smart financial decisions. At Blueprint Financial, we help you optimize every dollar so you can grow your wealth efficiently.
Want a customized financial plan? See our services.
