🩺 Medical Expense Tax Credit (METC) – CRA Income Tax Folio S1-F1-C1

The Medical Expense Tax Credit (METC) is a non-refundable tax credit that helps individuals reduce their federal income tax when they incur significant medical expenses for themselves or their dependants.

This technical interpretation is provided by the Canada Revenue Agency (CRA) as part of the Income Tax Folio series for professionals and taxpayers seeking detailed guidance on Canadian tax legislation.

📊 How the Medical Expense Tax Credit Is Calculated

The METC is calculated using a formula defined in section 118.2(1) of the Income Tax Act.

Credit = 15% × Eligible medical expenses above the threshold

The eligible expenses must exceed the lesser of:

3% of your net income, or
a fixed threshold amount indexed annually.

The credit applies separately to:

medical expenses for yourself, your spouse or common-law partner, and children under 18;
medical expenses paid for other dependants.

👨‍👩‍👧 Who You Can Claim Medical Expenses For

You may claim eligible medical expenses for:

yourself
your spouse or common-law partner
your children under 18
other dependants you support financially

Dependants generally must rely on you for basic necessities such as food, shelter and clothing.

📅 Eligible Expense Period

Medical expenses can be claimed if they were paid during a 12-month period ending in the tax year.

If the patient died during the year, expenses paid within a 24-month period that includes the date of death may be claimed.

💊 Examples of Eligible Medical Expenses

Examples of expenses that may qualify for the METC include:

payments to licensed medical practitioners
hospital services and medical treatments
prescription medications
assistive medical devices and implants
therapy prescribed by qualified professionals
transportation and travel required to obtain medical services

Eligible medical services must generally be diagnostic, therapeutic or rehabilitative and performed by qualified medical practitioners.

🚫 Expenses That Usually Do NOT Qualify

Some payments cannot be claimed as medical expenses:

cosmetic procedures done purely for aesthetic purposes
membership or access fees for private medical clinics
expenses that are reimbursed by insurance or another party

For example, access fees to private clinics are not eligible unless they represent prepaid medical services actually provided.

🌍 Medical Expenses Outside Canada

Medical expenses paid outside Canada can generally qualify for the credit, provided the services meet eligibility requirements.

However, certain expenses must occur in Canada, such as:

attendant care in specific situations
group home care
certain fertility-related services and surrogacy expenses

Documentation may be required to confirm the qualifications of foreign medical providers.

🧾 Receipt Requirements

All medical expenses must be supported by proper documentation.

Receipts should include:

name of the patient
date of payment
type of medical service
name and professional designation of the practitioner

Taxpayers should retain supporting documentation in case the CRA requests verification.

💡 Additional Tax Relief

Individuals with low income and high medical expenses may also qualify for the Refundable Medical Expense Supplement, which provides additional financial support for eligible taxpayers.

📚 Related CRA Resources

ℹ️ Source: Canada Revenue Agency – Income Tax Folio S1-F1-C1.