Is health insurance tax deductible in Canada?

This article was originally published on March 27, 2025, and was updated on February 20, 2026.

The 2026 tax season is around the corner, and if you’re like many Canadians, you may be overlooking a valuable opportunity to reduce your tax bill. Did you know that many health-related expenses, including some health insurance premiums, may be eligible for a tax credit? Understanding what medical costs you can claim can help you lower your taxable income and put money back in your pocket.

Let’s break down which health expenses qualify and how you can take advantage of this tax benefit when filing your 2026 tax return.

What is the Medical Expense Tax Credit?

The Medical Expense Tax Credit is one of the most underused tax breaks available to Canadians. Getting the most from it requires some careful planning, including keeping all your medical receipts. Your expenses don’t all have to come from the same tax year, but they must come from any 12-month period that ends in the tax year you are filing for. You don’t need to send your receipts or documentation with your tax return. However, you do need to have them ready in case the Canada Revenue Agency (CRA) asks to see them later.

The amount of tax relief you could receive depends on how many eligible medical expenses you had to pay for and your eligible health insurance premiums. If you have any questions about your eligibility, be sure to speak to a tax professional.

Can I claim health insurance premiums on my taxes?

Yes, you can claim some health insurance premiums on your taxes under METC,  but there are requirements. According to the CRA, you can claim premiums paid to private health insurance plans (PHSP) as a medical expense as long as 90% or more of the premiums are for eligible medical expenses. 

Common medical expenses you can claim include:

• ambulance services
• hospital services
• prescription drugs
• dental services

Note: You can claim the portion of the premiums you pay yourself, but not any amount covered by your employer. You can add the total with any other eligible medical expenses (such as travel medical expenses) and claim the entire amount as a credit on your tax return.

Here are some examples of premiums and their tax eligibility:

How to claim medical expenses under METC

You can claim eligible medical expenses on your tax return if you, your spouse, or common-law partner paid for the medical expenses in any 12-month period ending in the previous tax year or did not claim them in an earlier tax year. 

The Federal government gives this credit at the lowest marginal tax rate, which is 15%, but additional provincial tax rates vary. For example, in Ontario, the lowest rate is 5.05%. When you add this to the federal rate, the lowest marginal tax rate in Ontario is 20.05%. 

An entire family’s medical expenses can be added together and used for this credit, even expenses paid outside of Canada. In most cases, the lowest earning spouse should claim the credit because their income threshold will be lower.

To claim your health plan premium payments, include them with your other eligible medical expenses and enter the total on line 33099 of your tax return.

If your premiums are paid through an employer-managed plan, you can find the exact amount on your T4 Statement of Remuneration in Box 85 under the “other information” section. If this information isn’t listed on a T4 slip, be sure to keep your receipts as proof in case of a CRA audit.

If you have retired or left a job where your former employer continues to cover your health plan premiums, the amount will be recorded on your T4A Statement of Pension, Retirement, Annuity, and Other Income in Box 135.

Making a claim for yourself, your spouse, or your children under 18

You can claim eligible medical expenses paid for:

• Yourself
• Your spouse or common-law partner
• Your or your spouse’s or common-law partner’s children under 18

Sample calculation for Ontario: 

• A family has $13,200 in medical expenses, but their insurance reimburses them $6,000, leaving $7,200 in out-of-pocket costs.
• The lower-income spouse earns $38,000, making 3% of their income = $1,140
• Deductible medical expenses: $7,200 - $1,140 = $6,060
• Tax credit calculation: 20.05% of $6,060 = $1,215.03 tax credit

For other dependants

You can also claim medical expenses for family members who depend on you for support, including:

• Children or grandchildren who are 18 or older
• Parents, grandparents, siblings, aunts, uncles, nephews, or nieces, as long as they were residents of Canada during the year
  Medical expenses for each dependant must be calculated separately before being claimed on line 33199.

The bottom line

Many Canadians miss out on valuable tax savings simply because they don’t realize their medical expenses, including some health insurance premiums, can be claimed. By understanding what qualifies and keeping track of your receipts, you can maximize your tax credits and reduce your overall tax burden. 

As you prepare your return, take the time to review your expenses and ensure you’re getting the full benefit of the METC. If you’re unsure about your eligibility, a tax professional can help you make the most of this opportunity. 

For information about insurance and taxes, visit our insurance tax guide.

Also read

• • Filing Canadian taxes: Everything you need to know
  • Is travel insurance tax deductible in Canada?
  • Is small business insurance tax deductible in Canada?
  • Can I claim home and tenant insurance on my taxes?