The Medical Expense Tax Credit (METC) is an initiative offered by the Canadian government to help ease the burden of out-of-pocket medical expenses and allow residents of Canada to claim these costs against their taxable income for some financial relief.
While Canada has a nationwide healthcare system that provides access to everyone regardless of social standing or financial status, this system doesn’t cover everything. Many healthcare expenses are not covered under provincial benefits, and without extended benefits that are either purchased individually or provided by an employer, many of these expenses must be paid out-of-pocket.
Learn how to calculate the METC, what it covers, and more below.
How to calculate the Medical Expense Tax Credit
Under the Medical Expense Tax Credit, Canadian residents can claim the amount of expenses that exceeds the lower of 2 amounts: 3% of your net annual income or $2,759 (2024) / $2,833 (2025)
To calculate the full value of the tax credit:
- Calculate the amount of money you’ve spent on eligible medical expenses.
- Take that number, then subtract either 3% of your net income or $2,479 (whichever number is lower).
- The number you’re left with is the amount you can claim as your Medical Expense Tax Credit.
For example, let’s say you spent $4,000 on eligible medical expenses last year and your net income is $100,000.
- Medical expenses: $4,000
- Net income: $100,000
To calculate your Medical Expense Tax Credit, you would:
Calculate 3% of your $100,000 income.
$100,000 * 0.03 = $3,000
This is higher than the $2,479 minimum, and since you want to select the lower of the two numbers, you choose the $2,479.
Next, subtract $2,479 from the total amount spent ($4000).
$4,000 – $2,479 = $1,521
This is the number you’ll include on your tax return.
What is covered under the Medical Expense Tax Credit?
Every person has a different definition of what qualifies as a medical expense, so the federal government has a list of medical expenses that are eligible to be claimed under the Medical Expense Tax Credit.
Here are some examples of expenses that could be considered medical expenses, and whether they qualify.
| Eligible Under METC | Not Eligible Under METC |
|---|---|
| * Ambulance service * Baby breathing monitor * Dental services * In-vitro fertilization * Orthopedic shoes * Scooter | * Gym membership * Blood pressure monitor * Organic food * Diaper services * Over the counter medications, supplements, and vitamins |
For a complete list of qualifying expenses, please see: Medical expenses you can claim.
What is the Disability Tax Credit vs. Medical Expense Tax Credit?
The Disability Tax Credit (DTC) is a separate tax credit from the Medical Expense Tax Credit.
The Disability Tax Credit provides relief for Canadian residents living with a disability by allowing them to claim expenses related to their disability to reduce their taxable income and pay less income tax.
You may need to provide a completed T2201, Disability Tax Credit Certificate for certain medical expenses to be eligible for the METC.
There are specific instances where you can claim attendant care under the DTC and METC, but you’ll need to provide a breakdown of expenses. Otherwise, claiming all attendant care fees under the Medical Expense Tax Credit means you can’t also claim it under the Disability Tax Credit.
For more information, see: Special rules when claiming the disability amount.
FAQ
What is the Medical Expense Tax Credit?
The Medical Expense Tax Credit is a form of financial relief offered by the Government of Canada that allows people to claim their out-of-pocket medical expenses against their taxable income to reduce the amount of income tax paid.
What is an example of something that’s covered by the Medical Expense Tax Credit?
Eligible expenses include dental work, ambulatory care, prescription medication, insulin, and more.
How much can I claim for the Medical Expense Tax Credit?
You can claim the amount of your out-of-pocket medical expenses that exceeds 3% of your net annual income or $2,833 (whichever is lower).
Where do I claim the Medical Expense Tax Credit?
You can claim the METC on line 33099 of your income tax return if the expense was for yourself, your partner or spouse, and you or your spouse’s children under 18. If you’re claiming medical expenses for someone that depended upon your support, use line 33199 of your tax return.
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