Medical expenses: you get to pick the 12-month window — and the 3% hurdle decides who claims
The medical expense credit isn't tied to the calendar year, and the first 3% of your income earns nothing. How to choose the window, who should claim, and what to pay before December 31.
Dental work, new glasses, a hearing aid, a stack of prescriptions — most households pay for these without ever thinking about the tax return. The medical expense tax credit can give some of it back, but only if you set up the claim deliberately.
The rule most people miss: it's any 12 months
You can claim eligible expenses paid in any 12-month period ending in the tax year — not just January to December. For your 2026 return, that could be December 2025 to November 2026, or any other window ending in 2026. Choose the one that bundles your biggest bills, as long as you haven't already claimed those expenses on another return.
The hurdle: the first 3% earns nothing
You only get a credit on expenses above the lesser of:
- 3% of your net income, or
- $2,890 (the 2026 federal cap)
Some examples:
- $60,000 net income: hurdle is $1,800. A $4,000 year of expenses leaves $2,200 to claim.
- $100,000 net income: 3% is $3,000, so the $2,890 cap applies. The same $4,000 leaves only $1,110.
The federal credit is worth 14% of the claimable amount — about $308 in the first case and $155 in the second — plus a provincial credit on top.
It's a modest credit, not a refund of the bill. But it's real money for doing paperwork you may already have.
Who should claim: usually the lower earner
Either spouse can claim the family's expenses, and the hurdle is based on the claiming spouse's net income. A lower net income means a lower 3% hurdle, which usually means a bigger claim. Run it both ways before filing.
What counts (and what doesn't)
Typically eligible: prescription drugs, dental work, prescription glasses and contacts, hearing aids, CPAP machines, mental health services from qualified practitioners, and medical travel over about 40 km one way.
Typically not: most over-the-counter products, vitamins, gym memberships, and cosmetic procedures. Anything your employer plan or insurer reimburses can't be claimed again.
What to do before December 31
- Gather receipts for your likely window — pharmacy printouts, dental and vision invoices, insurance statements.
- Check your total against the hurdle. If you're close, paying a planned bill (glasses, a dental treatment) before year-end can push the window over it.
- Check your coverage first. If your group plan reimburses most of it, the remainder may be too small to claim.
To see where your net income — and your hurdle — lands, check your numbers in the take-home pay calculator.
The takeaway
The credit rewards the organized: pick the 12-month window, check the 3% hurdle against the lower earner's income, and gather receipts now rather than at tax time. Confirm eligibility and the current-year limit with the CRA before you file.
Figures reflect the 2026 federal threshold of $2,890 and 14% credit rate; verify against the CRA's published 2026 amounts. Take-home context via Metrestick.