Is travel insurance tax deductible in Canada? What you need to know

This article was originally published on March 27, 2025, and was updated on February 6, 2026. 

Tax season in Canada is fast approaching, and many people are looking for ways to reduce their tax burden. While you may be aware of the tax benefits of RRSPs and other accounts, you might not know that the medical portion of travel insurance is tax deductible. 

Travel insurance is crucial when travelling outside your home country or province. It protects your travel plans in case of unforeseen emergencies—such as unexpected travel interruptions, and having extra health insurance protects your wallet from the high cost of medical care. 

Buying travel insurance is a smart move that covers you in an emergency with a tax benefit as a nice bonus. 

Can I claim travel insurance premiums on my 2026 tax return?

Yes, you may be eligible to claim your travel medical insurance premiums on your tax return under METC if the costs fall within the criteria outlined by the Canada Revenue Agency (CRA).

According to the CRA, premiums paid to private health services plans may be claimed as a medical expense, provided that 90% or more of the premiums are for eligible medical expenses. 

Other types of travel insurance, such as trip cancellation insurance, trip interruption insurance, and baggage loss insurance, do not qualify for this credit and should not be included in any tax claims related to medical expenses. Only the medical coverage portion of your policy can be used. You can also claim out-of-pocket expenses that insurance will not reimburse you for. 

Which travel medical expenses can I claim under METC? 

Examples of eligible travel expenses that can be claimed as medical expenses on your tax return include:

• Hospital stays
• Ambulance services
• Dental services
• Prescription drugs

Which travel medical expenses cannot be claimed under METC? 

Examples of travel expenses that are not eligible to claim as medical expenses include:

• Cosmetic surgery (including teeth whitening)
• Over-the-counter medication
• Fitness club fees
• Medical expenses that you will be reimbursed for from private insurance

How to claim travel medical insurance

You can claim this tax credit if you have eligible medical expenses for:

• Yourself
• Your spouse or common-law partner
• Your children under 18
• Certain other dependants (like parents, grandparents, siblings, etc.).

If you have a spouse and a common-law partner, you can only claim medical expenses for one, not both.

How is the medical expense tax credit calculated?

The tax credit is 15% of the total eligible medical expenses that exceed the lower of:

• A fixed amount (which changes yearly).

• 3% of your net income for the year.

For other dependants (e.g., parents, grandparents), the tax credit is based on 3% of their net income instead of yours.

Who counts as a dependant?

• A child, grandchild, parent, grandparent, sibling, uncle, aunt, niece, or nephew who depends on you for support (food, shelter, clothing, etc.) and lives in Canada (unless they are your child or grandchild).
• Children under 18 are not considered dependants for this purpose because their expenses are already covered under your main claim.
• If you paid for a spouse’s or dependant’s medical expenses while still your spouse/dependant, you can claim them even if they are no longer your spouse or dependant when you file your taxes.
• Either spouse/common-law partner can claim the total medical expenses for the family.

Conditions for claiming travel medical expenses

To qualify for the tax credit:

• The medical costs must be eligible under tax rules.
• You or your legal representative must have paid the expenses.
• The expenses must have been paid within 12 months ending in the tax year (or 24 months if the patient passed away).
• The expenses cannot have already been used for another tax deduction.
• You must have receipts as proof.
• The expenses must not have been reimbursed by insurance or another source.

Consult a tax professional if you’re not sure about your eligibility.

Keep a record of your expenses

Using the tax credit takes a bit of preparation. Always keep detailed records of your expenses and hold on to all receipts, ensuring they clearly show the name of the company you paid. However, do not send these documents with your tax return, just keep them if the CRA asks to see them later. Generally speaking, you must keep all required records and supporting documents for six years from the end of the last tax year they relate to. Visit Revenu Québec and the CRA for more information.

The bottom line

Travel insurance isn’t just a smart way to protect yourself from unexpected medical costs; you can also use the medical portion to reduce your overall tax burden with the Medical Expense Tax Credit. Whether you're a frequent traveler or planning a one-time trip, claiming the eligible portion of your travel insurance costs can help you save money while staying protected. Consult with a tax professional to ensure you maximize your deductions and meet all CRA requirements.

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

Also read

• • Filing Canadian taxes: Everything you need to know
  • How to choose the best travel insurance
  • How travel insurance protects you from travel scams
  • Is small business insurance tax deductible in Canada?