By TaxNorth Editorial Team
Paying for healthcare in a new country can be stressful, especially when you have out-of-pocket costs for dental care, prescription glasses, or medications. The CRA offers the Medical Expense Tax Credit to help you recover some of those costs.
The Medical Expense Tax Credit (METC) is a non-refundable tax credit that reduces the amount of federal income tax you owe if you have significant eligible medical expenses. It does not give you a direct cash refund if your tax bill is already zero, but it can substantially lower taxes payable if you are working in Canada.
Yes. To qualify, you need to be considered a resident of Canada for tax purposes during the tax year. International students, permanent residents, and work permit holders who file a Canadian tax return are generally eligible. You can claim eligible expenses paid for yourself, your spouse or common-law partner, and your dependent children under 18.
You can claim prescription medications, dental services like cleanings and fillings, prescription eyeglasses or contact lenses, and fees paid to licensed medical practitioners like physiotherapists. You cannot claim over-the-counter medications, vitamins, or fitness club memberships. Expenses paid outside Canada may also qualify in some circumstances — convert those amounts to Canadian dollars and verify eligibility with the CRA. Always check the official CRA list at canada.ca to confirm whether a specific expense qualifies.
You can only claim the portion of medical expenses that exceeds a minimum threshold. For the 2025 tax year, you can claim the portion that exceeds the lesser of $2,834 or 3% of your net income. For example, if your net income is $40,000, your threshold is 3% of $40,000 which equals $1,200. If you spent $2,000 on eligible dental work, you subtract $1,200 and claim the remaining $800. Verify the current threshold at canada.ca as it adjusts annually.
The CRA allows you to choose any 12-month period ending in the current tax year to claim your medical expenses. This is helpful if you had large medical expenses across two calendar years — you can group them into one 12-month window for a potentially larger credit. Do not claim the same expense twice or claim amounts reimbursed by insurance.
Do I need to send receipts to the CRA? No, but keep them for six years in case of a review. Can I claim expenses paid outside Canada? Eligible medical expenses paid abroad may qualify — verify each expense against the CRA list and convert to Canadian dollars. What if insurance covered part? You can only claim your out-of-pocket portion.
Need help figuring out if your medical costs qualify? Ask TaxNorth — free, plain-language answers in any language.
Ask TaxNorth free