What kinds of medical expenses qualify for the Canadian tax credit and how do I claim them?

The Medical Expense Tax Credit (METC) is a federal non-refundable credit for qualifying out-of-pocket medical expenses. Qualifying expenses include prescription drugs, dental work, eyeglasses (with a prescription), medical devices, certain attendant care costs, travel to medical treatment when not available locally, and many other items listed in CRA's guide T4130. Over-the-counter medications, cosmetic procedures, and most gym memberships do not qualify.

You can claim expenses for yourself, your spouse or common-law partner, and your dependants on a single claim. The credit applies to the amount of qualifying expenses that exceeds a threshold — the lesser of a fixed dollar amount (adjusted annually) or 3% of your net income. Only the excess above that floor generates the credit.

Strategically, the lower-income spouse should usually claim the METC, because their 3% floor is smaller in dollar terms, leaving a larger net eligible amount. You can also use any 12-month period ending in the tax year, not just the calendar year, to maximize the eligible expenses included.

Keep all receipts; CRA may request them. Ontario's provincial tax calculation follows similar rules but applies the Ontario personal tax credit rate.