Medical Expense Tax Credit in Ontario: What Qualifies and How to Claim It

Every year, Ontario residents spend thousands of dollars out-of-pocket on health care — prescriptions, dental work, glasses, physiotherapy, and more. Yet many people miss the medical expense tax credit (METC), one of the most underused credits on a Canadian personal tax return. If you are unsure which expenses count, who you can claim them for, or how to time your claim to get the most back, this article walks you through it.

The METC is a federal non-refundable credit available to anyone who files a Canadian income tax return. The rules apply equally to Ontario residents. Understanding what qualifies — and what does not — can meaningfully reduce your tax bill. And because the credit has a threshold tied to income, a few planning moves can increase what you recover.

The figures and thresholds referenced in this article are correct as of writing; verify current amounts with the CRA or a qualified accountant before you file.

How the Medical Expense Tax Credit Works

The METC is non-refundable, which means it can reduce the federal income tax you owe to zero, but it does not generate a cash refund on its own (there is a separate refundable supplement for lower-income earners — see below).

You claim the credit on the amount of eligible medical expenses that exceeds a threshold, which is the lesser of:

• A fixed dollar amount set each year (as of writing — verify the current amount with the CRA or an accountant), or
• A percentage of your net income for the year (again, verify the current rate).

In practice, the percentage-of-income threshold benefits lower earners most: a person with modest income has a lower threshold to clear before the credit kicks in. Higher earners are often better off claiming on a lower-income spouse's return for exactly this reason.

Once you clear the threshold, the credit is calculated as a percentage of the eligible expenses above it, at the lowest federal income tax rate. Provincial credits work similarly and stack on top.

What Qualifies: Eligible Medical Expenses

The CRA publishes a detailed list of eligible expenses. Common qualifying categories include:

Prescription Drugs and Medical Supplies

• Prescription medications dispensed by a licensed pharmacist
• Insulin and diabetic supplies (test strips, lancets, syringes)
• Prescribed vitamins or supplements (if a medical practitioner has prescribed them — unprescribed supplements do not qualify)
• Ostomy supplies

Dental and Vision

• Dental treatment: fillings, extractions, root canals, crowns, dentures, orthodontics
• Prescription eyeglasses and contact lenses
• Eye exams by a licensed optometrist
• Laser eye surgery

Paramedical Services

Many paramedical services qualify, provided the practitioner is licensed to practise in the province where the service is rendered. Eligible practitioners typically include:

• Physiotherapists
• Chiropractors
• Psychologists and registered psychotherapists
• Occupational therapists
• Speech-language pathologists
• Massage therapists (in provinces where they are regulated — Ontario qualifies)

Medical Devices and Equipment

• Hearing aids and batteries
• Wheelchairs, walkers, crutches
• Casts and braces
• CPAP machines and supplies for sleep apnea
• Prosthetic limbs
• Home modifications for persons with severe mobility impairments (grab bars, ramps — specific conditions apply)

Travel for Medical Treatment

If you must travel at least a prescribed minimum distance to obtain medical services not reasonably available in your area, you can claim:

• Transportation costs (mileage at the prescribed rate, or public transit)
• Accommodation (at a reasonable rate per night — verify the current cap)
• Meals (at the flat rate per meal set by the CRA, if you are away overnight)

Keep a travel log and retain all receipts.

What Does Not Qualify

The METC list is generous but not unlimited. Common ineligible expenses include:

• Gym memberships and fitness classes — even if prescribed for a medical condition, these generally do not qualify unless they fall under a specifically listed category
• Cosmetic procedures — elective procedures undertaken purely for aesthetic purposes are excluded
• Vitamins and supplements not prescribed by a medical practitioner
• Non-prescription medications (over-the-counter cold remedies, pain relievers)
• Health insurance premiums paid by an employer on your behalf (though premiums you pay personally may qualify under certain plans)
• Teeth whitening and other cosmetic dental work

When in doubt, check the CRA's official list. If a practitioner recommended a product or service, ask whether they will provide a written prescription — that can sometimes convert an otherwise ineligible expense into an eligible one.

Who You Can Claim For

You can claim eligible medical expenses paid for:

• Yourself
• Your spouse or common-law partner
• Your dependent children under a prescribed age (verify the current age threshold)
• Other dependants — parents, grandparents, siblings, aunts, uncles, and certain other relatives who depended on you for support. For these dependants, the calculation is slightly different: expenses must exceed a threshold tied to the dependant's income, and you claim them on a separate line.

Expenses for dependants other than a spouse or minor child do not reduce the main METC threshold — they are computed separately and added to your total credit.

The 12-Month Rolling Period: A Key Planning Move

The CRA does not require you to claim medical expenses on a January-to-December calendar-year basis. Instead, you can use any 12-month period ending in the tax year. This flexibility is significant.

Example: If you had a major dental procedure in November of the prior year and again in March of the current year, you could choose a 12-month period running from November of last year to October of this year. That groups both large expenses into a single claim, pushing more of your spending above the threshold and increasing the credit.

The rule: the expenses must have been paid in the chosen 12-month period, and the period must end in the tax year for which you are filing. You cannot use the same expense in two different years' claims.

Claim on the Lower-Income Spouse's Return

Because the METC threshold is the lesser of a fixed amount or a percentage of net income, the threshold is lower for the spouse with lower net income. The lower the threshold, the more expenses clear it and the larger the credit.

For couples, it almost always makes sense to pool all eligible medical expenses from both spouses and claim the full combined amount on the lower-income spouse's return. You are permitted to do this — expenses paid by either spouse for either spouse or for your children can be included in one spouse's claim.

The Refundable Medical Expense Supplement

If your income is below a prescribed threshold (as of writing — verify the current amount with the CRA or an accountant), you may qualify for the Refundable Medical Expense Supplement. Unlike the main METC, this supplement can generate a cash payment even if you owe no tax. It is designed for lower-income workers who pay significant out-of-pocket medical costs. You must have earned income (from employment or self-employment) to qualify. The supplement is claimed on the same T1 return.

Keeping Receipts: CRA Documentation Rules

The CRA does not require you to attach medical receipts to a paper return, but you must retain all receipts for a minimum of six years from the end of the tax year. If your return is reviewed or audited, the CRA will ask for documentation. Receipts should show:

• The name of the patient
• The name and credentials of the medical practitioner or pharmacy
• A description of the product or service
• The amount paid and the date

Organize receipts by year and by 12-month claim period. A simple spreadsheet that lists each expense, the provider, and the date paid will make year-end filing straightforward and protect you if questions arise later.

When to Consult an Accountant

The METC rules are detailed, and small choices — which 12-month period to use, whether to claim on your return or your spouse's, how to handle dependant expenses — can make a material difference to your refund. Consider speaking with an accountant if:

• Your family's medical expenses are large (surgery, orthodontics, assisted living, home modifications)
• You are caring for an aging parent or a child with a disability
• You are self-employed and also claiming business-related health costs
• You received the Disability Tax Credit and want to coordinate claims
• Your income fluctuated significantly between years

For issues that intersect with legal arrangements — such as separation agreements that allocate medical costs between former spouses, or trusts that pay for a beneficiary's care — a tax lawyer can help ensure the structure is sound.

Frequently asked questions