Medical Expense Deductions: What’s Eligible in 2025?

1. Why the Medical Expense Tax Credit (METC) Matters

The METC is a non‑refundable federal tax credit that reduces your income tax payable when you—or certain family members—incur qualifying out‑of‑pocket medical costs not covered by public or private plans. Because Canada’s health system doesn’t pay for everything—dental work, many prescriptions, devices, travel, renovations for accessibility—tracking these expenses can yield significant tax savings for those with chronic conditions, major procedures, or specialized care needs. :contentReference[oaicite:0]{index=0}

2. Choosing Your Claim Period

You may claim eligible medical expenses paid in any 12‑month period ending in the tax year you file, provided those amounts weren’t claimed in the prior year. This flexibility lets you “bunch” large expenses—orthodontics, surgeries, home renovations—into one tax return to clear the threshold more easily. In the year of a taxpayer’s death, you can claim expenses paid in any 24‑month period that includes the date of death. :contentReference[oaicite:1]{index=1}

3. Who You Can Claim For

On your T1 return you use:

• Line 33099 – Expenses you or your spouse/common‑law partner paid for yourself, your partner, and any children under 18 at year‑end.
• Line 33199 – Expenses you or your partner paid for other dependants (adult children, grandchildren, parents, grandparents, siblings, aunts/uncles, nieces/nephews) who relied on you for support.

Each dependant claimed on line 33199 has its own threshold calculation. :contentReference[oaicite:2]{index=2}

4. Threshold: 3% of Net Income vs. Fixed Amount

For 2024, you subtract the lesser of 3% of your net income (line 23600) or $2,759 from total eligible expenses to arrive at your claimable amount. The fixed dollar threshold is indexed annually—confirm the updated 2025 amount before you file. :contentReference[oaicite:3]{index=3}

5. Eligible Expense Categories in 2025

Below are the most commonly claimed categories of medical expenses recognized by the CRA:

• Medical & Dental Services: Fees paid to physicians, dentists, nurses, psychologists, chiropractors, physiotherapists, and other practitioners when authorized under provincial law. :contentReference[oaicite:4]{index=4}
• Diagnostic Procedures: Laboratory tests, X‑rays, MRIs, ultrasounds, and other diagnostic services prescribed by a medical practitioner. :contentReference[oaicite:5]{index=5}
• Prescription Drugs & Medicines: Medications dispensed by a pharmacist against a valid prescription. (OTC drugs do not qualify.) :contentReference[oaicite:6]{index=6}
• Attendant Care & Institutional Care: Salaries or wages for caregivers and full‑time nursing home fees, including food and accommodation when certified under Form T2201. :contentReference[oaicite:7]{index=7}
• Devices & Equipment: Hearing aids (and batteries), wheelchairs, artificial limbs/eyes, oxygen equipment, insulin pumps, CPAP machines, and other prescribed devices. :contentReference[oaicite:8]{index=8}
• Service Animals: Purchase, training, food, and veterinary care for guide dogs and other animals trained to assist with a severe impairment. :contentReference[oaicite:9]{index=9}
• Private Health Plan Premiums: Employee‑paid premiums to a Private Health Services Plan (PHSP) reported on T4 Box 85 or T4A Box 135. :contentReference[oaicite:10]{index=10}
• Travel Expenses: Public transit when medical services are >40 km away; vehicle, lodging, meals, and parking when >80 km away—keep distance logs and receipts. :contentReference[oaicite:11]{index=11}
• Out‑of‑Country Care: Eligible when services are lawful and not available locally; document medical necessity and location. :contentReference[oaicite:12]{index=12}
• Home Renovations: Modifications for accessibility—ramps, widened doorways, specialized plumbing—claim only the medically required incremental cost. :contentReference[oaicite:13]{index=13}

6. New & Expanded Items for 2025

• COVID‑19 Rapid Tests: Costs of rapid antigen tests prescribed by a medical practitioner are now eligible. :contentReference[oaicite:14]{index=14}
• Fertility & Surrogacy: Expanded to include certain donor and surrogate expenses when medically indicated. :contentReference[oaicite:15]{index=15}
• Respiratory Masks & Filters: Masks or filtration systems prescribed for severe respiratory conditions may qualify when supported by a practitioner’s note. :contentReference[oaicite:16]{index=16}

7. Strategic Tips to Maximize Your Claim

• Have the lower‑income spouse claim. A lower net income reduces the 3% floor, increasing your claimable expenses. :contentReference[oaicite:17]{index=17}
• Bunch expenses. Time elective procedures and equipment purchases into one 12‑month window.
• Coordinate reimbursements. Only the unreimbursed portion from private or provincial plans is claimable.
• Capture ancillary costs. Parking, meals, and accommodation tied to eligible travel can push you past the threshold.
• Compare provincial credits. Provinces apply their own rates; ensure you claim on both federal (line 33099/33199) and provincial schedules.

8. Documentation & Audit Prep

CRA does not require you to submit receipts with a NETFILE return, but you must keep them for six years. Maintain:

• Detailed receipts (provider name, date, amount, description) for all expenses.
• Prescriptions or written certifications for drugs, devices, and professional services.
• PHSP/insurance statements showing premiums paid vs. reimbursed.
• Travel logs (dates, km, purpose) plus lodging and meal receipts.
• Facility breakdowns separating care wages from non‑eligible accommodation/food.

9. FAQs

Can I claim insulin or diabetes supplies?

Yes—prescribed devices, test strips, and associated supplies are eligible when dispensed by a pharmacist. :contentReference[oaicite:18]{index=18}

My child turned 18—can I still claim their braces?

Yes, on line 33199: subtract the lesser of 3% of their net income or the fixed threshold, then enter the result. :contentReference[oaicite:19]{index=19}

Do I need a doctor’s note for home renovations?

Yes—a practitioner’s certification that the modification is medically required is strongly recommended. :contentReference[oaicite:20]{index=20}

What about over‑the‑counter vitamins?

Generally not eligible—even if recommended—unless part of a broader prescribed treatment. :contentReference[oaicite:21]{index=21}

10. Wrap‑Up & Next Steps

Medical expense claims can unlock valuable tax relief—but only with careful planning and recordkeeping. Start organizing receipts now, choose the best 12‑month window, and decide who in your household should claim. For complex situations—home accessibility renovations, surrogate arrangements, or multi‑jurisdiction families—consider professional advice.