The Medical Expense Tax Credit (METC) is a non-refundable tax credit designed to help Canadians reduce the amount of federal and provincial tax they owe by claiming eligible medical expenses paid in the year. It applies to most medical-related costs for you, your spouse/common-law partner, and your dependants.
Non-refundable means it can lower your tax owing, but it won’t result in a refund by itself if you have no tax owing.
How the METC Is Calculated
You total all eligible medical expenses paid in any 12-month period ending in the tax year.
The credit applies only to the amount that exceeds the threshold, which is the lesser of:
- 3% of your net income, and
- A fixed CRA amount (for example, around $2,834 for 2025 — amounts change annually).
Once you have your eligible expenses over the threshold, you multiply that amount by the lowest personal tax rate (e.g., around 15% federally in recent years).
Example:
If your eligible medical expenses are $10,000 and your threshold is $2,800, then:
- Amount eligible for credit = $10,000 − $2,800 = $7,200
- Federal tax credit = $7,200 × 15% = $1,080
(Plus a provincial METC where applicable)
Who You Can Claim For
You can claim eligible medical expenses you paid for:
- Yourself
- Your spouse/common-law partner
- Dependants (including children and certain relatives who lived in Canada in the year)
METC vs. Disability Tax Credit (DTC)
The Disability Tax Credit (DTC) is a separate non-refundable tax credit intended for people with a severe and prolonged impairment. To claim DTC benefits, you need an approved Form T2201 (Disability Tax Credit Certificate) signed by a medical practitioner and approved by the CRA.
Important:
- METC: based on actual eligible medical expenses incurred.
- DTC: is an amount tied to being eligible for disability; doesn’t depend on specific medical costs.
- In some cases of attendant care or nursing home/retirement home costs, you must decide whether to claim METC only or DTC plus a smaller attendant care amount — whichever gives you the better tax benefit.
Rules for Attendant Care & Care Facilities
The rules depend on the care setting:
Care at Home
- Claim salaries/wages for one full-time attendant (plus employer EI/CPP).
- A DTC or a medical practitioner’s note saying the person needs personal care is required.
- You can either:
- Claim DTC plus up to $10,000 for attendant care, or
- Skip DTC and claim the full cost of attendant care (whichever yields greater benefit).
Retirement Home
- Eligible: salaries for nursing, personal care, housekeeping of the resident’s space, laundry, transportation.
- Not eligible: rent, food, administrative fees.
- DTC is required for most eligible attendant care claims.
Nursing Home / Full-Care Facility
- Generally, all fees for full-time care (food, accommodation, nursing, activities) are eligible — but if you claim the full nursing home cost, you usually cannot also claim DTC for that person in the same year.
Note: Always get a detailed breakdown of bills from institutions so you can separate eligible care components from non-eligible parts.
What Medical Expenses Are Eligible?
Eligible expenses may include:
- Attendant care and nursing home costs (with requirements).
- Medical devices and equipment.
- Prescription drugs and certain therapies.
- Dental care (some specifics).
- Basic supplies and health-related services.
Important Steps When Claiming
1. Collect Detailed Receipts
Make sure each expense has:
- The recipient’s name
- What service/product it was
- Date paid
- Amount paid
(Keep these for at least six years; the CRA may ask for them.)
2. Use CRA Forms Correctly
On CRA tax returns, eligible medical expenses are reported on lines 33099/33199 of your tax return.
3. Retain Proof of Payment
Bank statements, cancelled cheques, or credit card statements strengthen your claim.
4. Consult CRA Guides
CRA’s official guides (like RC4064 — Medical and Disability-Related Information) outline rules and sample cases.
Final Tip
Because tax rules and threshold amounts change annually, always refer to the latest CRA information before finalizing your tax return. The CRA website and its official tax guides are the most authoritative
📌 Resources & Funding Guides
- Home Accessibility Tax Credit (HATC) Canada — about tax credit for home accessibility
- A Guide to Disability Funding & Supports in Canada
- Canadian Disability Travel Card: Accessible and Affordable Travel
- Financial Aid for Canadian Students with Disabilities
- What is the Access 2 Card
📌 Blog/Related Topics
- More Than a Caregiver: Your Guide to Staying Well — useful if touching on caregiving tax credits
- Books on Disability: Canadian Authors and Perspectives — for broader resource context
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