What Is the Canada Medical Expense Tax Credit (METC)?
The Medical Expense Tax Credit (METC) is a federal tax benefit offered by the Canada Revenue Agency (CRA).
It allows taxpayers to claim eligible out-of-pocket medical expenses that exceed a certain income threshold, helping reduce the amount of income tax owed.
Important:
- It is NOT a cash reimbursement
- It is NOT a deduction from income
- It is a non-refundable tax credit
This means it can reduce your taxes payable to zero, but it will not generate a refund beyond taxes owed.
How to Calculate the Medical Expense Tax Credit in 2026
For the 2026 tax year, you may claim:
Eligible medical expenses
minus
The lesser of:
- 3% of your net income, OR
- The annual fixed threshold amount set by CRA (indexed each year)
Always confirm the official CRA threshold amount for the 2026 tax year before filing.
Example Calculation
Assume:
- Total eligible medical expenses: $6,000
- Net income: $90,000
Step 1: Calculate 3% of net income
$90,000 × 3% = $2,700
Step 2: Compare with CRA’s annual threshold
If the CRA threshold is higher than $2,700
→ Use $2,700 (the lower amount)
Step 3: Subtract from total expenses
$6,000 − $2,700 = $3,300
Step 4: Calculate the federal tax credit
$3,300 × 15% (federal lowest tax rate)
= $495 federal tax reduction
You may also receive an additional provincial medical expense tax credit (e.g., in British Columbia), increasing total savings.
What Medical Expenses Qualify in Canada (2026)?
Many taxpayers search:
- Are dental expenses tax deductible in Canada?
- Can IVF be claimed on taxes?
- What medical expenses qualify for METC?
Below are common eligible expenses:
Eligible Medical Expenses
- Dental treatments
- Prescription medications
- Insulin
- Hospital services
- Ambulance services
- Psychological services (by qualified professionals)
- In vitro fertilization (IVF)
- Hearing aids
- Vision exams and prescription glasses
- Medical insurance premiums (if not reimbursed)
Expenses That May Require Medical Certification
- Orthopedic shoes
- Medical mobility scooters
- Special diets for specific medical conditions
- Medical monitoring devices
Expenses That Do NOT Qualify
- Gym memberships
- Organic food
- Diapers
- Cosmetic surgery (unless medically necessary)
- Over-the-counter vitamins
- Regular supplements
Who Can You Claim Medical Expenses For?
On your Canadian tax return:
Line 33099
You may claim expenses for:
- Yourself
- Your spouse or common-law partner
- Children under 18
Line 33199
You may claim expenses for:
- Parents
- Grandparents
- Adult children
- Other financially dependent relatives
Tax Optimization Strategies for 2026
1. Choose Any 12-Month Period
You can claim medical expenses for:
Any continuous 12-month period
As long as it ends in the tax year
For example:
- July 2025 – June 2026
- January 2026 – December 2026
This helps you group expenses to exceed the 3% threshold more efficiently.
2. Have the Lower-Income Spouse Claim
Since the threshold is:
3% of net income
The spouse with lower income has a lower threshold — allowing more expenses to qualify.
This strategy is especially important for dual-income households.
3. Concentrate Major Medical Expenses
If possible, group large expenses within one tax year:
- Dental surgeries
- IVF treatments
- Chronic illness treatment
This increases the likelihood of exceeding the income threshold.
Medical Expense Tax Credit vs Disability Tax Credit (DTC)
These are often confused but serve different purposes.
| Medical Expense Tax Credit | Disability Tax Credit |
|---|---|
| Based on actual medical expenses | For individuals with long-term disabilities |
| Calculated annually | Fixed credit amount |
| No disability certification required | Requires T2201 form approval |
Certain attendant care expenses may only be claimed under one program, depending on circumstances.
Frequently Asked Questions
Can I receive cash back from the Medical Expense Tax Credit?
No.
It only reduces taxes payable. It does not generate a cash refund beyond taxes owed.
Can vitamins or supplements be claimed?
Generally, no.
Unless they are prescribed medical products and qualify under CRA guidelines.
How long should I keep receipts?
Keep all supporting documents for at least 6 years in case of CRA review.