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An Ontario resident with $70,000 of income who paid $7,800 of medical bills from July 2025 to June 2026 saves about $1,090 in tax. The calendar year alone, with $6,200 of receipts, saves $785. The first slice of any claim is ignored: the lesser of 3% of net income and $2,890 for 2026, or $2,080 here.
You pick the 12 months, so it pays to look before the year ends. A period finishing in December 2026 can still collect about ten more weeks of receipts.
Which 12 months should you claim?
Any 12 months in a row that end in 2026 are allowed, provided you didn’t claim those expenses on an earlier return. The threshold is the same whichever period you pick, so the period with the most eligible receipts usually wins. In the example, July 2025 to June 2026 holds $7,800 and January to December 2026 holds $6,200. Take out anything an insurer or health plan paid back, and make sure the window doesn’t reuse months you already claimed on your 2025 return.
How is the medical expense credit worked out for 2026?
Subtract the lesser of 3% of your net income and $2,890 from your eligible expenses. Multiply what’s left by the lowest federal rate, 14%, and by your province’s lowest rate. The $2,890 is the indexed amount in the Canada Revenue Agency: indexation adjustment table for 2026, up from $2,834 for 2025. In the Ontario example, $5,720 over the threshold gives $801 federal and $289 Ontario (at 5.05%), about $1,090 in total. Provinces set their own thresholds: British Columbia uses $2,748 and Saskatchewan $2,735 for 2026. Quebec has a separate rule based on 3% of family income.
The threshold at a few incomes:
| Employment income | Threshold that comes off your claim |
|---|---|
| $30,000 | $892 |
| $50,000 | $1,486 |
| $70,000 | $2,080 |
| $120,000 | $2,890 |
Should you pay a bill before 31 December?
Expenses count in the period when you paid them. A dental bill settled on 28 December lands in a 2026 window, and the same bill paid on 3 January lands in 2027. If your 2026 total sits just under the threshold, a planned payment made before year end can lift the whole claim. If you’re well over it, paying early changes little. Keep the dated receipt either way.
Which spouse should make the claim?
Either spouse can claim the family’s expenses, which cover you, your spouse and your children under 18 at the end of the year. The lower-income spouse has the lower 3% threshold, so more of the bill counts: at $30,000 the threshold is $892, and the same $7,800 period saves about $1,316, against $1,090 when the $70,000 earner claims. The catch is that the credit isn’t refundable, so the claimant needs enough tax to absorb it (the tax refund calculator shows how much you owe or get back). A dependant such as a parent you support is worked out separately, with their own net income. For other credits on the same return, see the tax credits calculator; if the claim is for a family member with a disability, the disability tax credit calculator covers that credit.
Where does this information come from?
The 2026 federal threshold comes from the Canada Revenue Agency indexation table and the provincial thresholds from the British Columbia and Saskatchewan government pages; the credit figures come from our own engine with 2026 rates. Checked in October 2026. This is an independent information site: we provide no services, we do not represent the CRA or any organization, and we do not guarantee that anything here is accurate or current. We accept no liability for decisions based on it. Check the official source before you rely on it. See the full disclaimer.
Frequently asked questions
Is the medical expense credit refundable?
No. It only reduces tax you owe, and any unused part is lost. At the 14% federal rate, $3,000 of credit amount is worth $420 if you owe at least that much federal tax.
What changes for Quebec residents?
Revenu Quebec counts the part of expenses above 3% of your income, and adds your spouse's income if you had a spouse on 31 December. You pick the most advantageous 12 months, and you need receipts to support the claim.
What if the person died during the year?
The CRA allows expenses paid in any 24-month period that includes the date of death, as long as they weren't claimed for another year. The executor can gather up to 24 months of receipts for the final return.
Will the threshold change in 2027?
It's indexed each year, and the CRA hasn't published the 2027 amount yet, so there is no 2027 figure to quote. For the 2026 return filed by 30 April 2027, the threshold is $2,890.