Reviewed April 27, 2026 · Health and dental plans for Canadians outside Quebec.
Here is something many Canadians miss: the premiums you pay for a private health and dental plan can count toward a federal tax credit — right alongside your prescriptions, dental bills, and glasses. The Medical Expense Tax Credit will not make coverage free, but it can quietly lower the real cost. Here is how it works, without the jargon.
Is this you?
- You pay for your own health and dental plan and wonder whether the premiums are tax-deductible.
- You had a heavy year of dental work, prescriptions, or paramedical care and want to know what you can claim.
- You are self-employed or between jobs and buying coverage on your own for the first time.
If so, this is worth a few minutes.
What the Medical Expense Tax Credit is
The Medical Expense Tax Credit (METC) is a non-refundable federal tax credit for eligible medical expenses you paid for yourself, your spouse or common-law partner, and certain dependants. Non-refundable means it lowers the tax you owe but will not, on its own, create a refund. You claim it on line 33099 of your return (line 33199 for other dependants), and most provinces layer a parallel credit on top.
The threshold: why not everything counts
You do not get credit on the first dollar. You can only claim the amount of eligible expenses that exceeds a threshold, and the threshold is the lesser of:
- 3% of your net income, or
- a fixed dollar amount set each year (about $2,834 for the 2025 tax year, indexed annually).
So a person with $50,000 of net income has a threshold of $1,500 (3% of $50,000); only eligible expenses above that count. Someone with a high income hits the fixed cap instead. The exact figure changes yearly, so confirm the current one on Canada.ca.
Yes — your premiums can qualify
This is the part that surprises people. Premiums you pay to a private health services plan are eligible medical expenses, as long as 90% or more of what the plan covers is itself eligible medical expenses. Most individual health, dental, and hospitalization plans meet that test, which means the monthly premium you pay out of pocket can be added to the pile of expenses you claim.
Two honest caveats:
- Premiums your employer pays for you generally do not count, because you did not pay them.
- The premium still has to clear the same threshold as everything else, so it helps most when combined with your other medical costs.
What else you can claim
The METC covers a broad list, including:
- Prescription drugs dispensed by a pharmacist.
- Dental treatment.
- Vision — eye exams for some, eyeglasses, contact lenses.
- Paramedical services from authorized practitioners.
- Medical devices and certain supplies.
The Canada Revenue Agency publishes a detailed, searchable list of what is and is not eligible. Over-the-counter products, most cosmetic procedures, and gym memberships generally do not qualify. Because you claim actual amounts paid, keep every receipt.
Two moves that maximize the credit
- Pool on the lower-income spouse. You can combine the family's eligible expenses on one return. The spouse with the lower net income faces a smaller 3% threshold, so the same expenses often produce a bigger credit there.
- Pick the best 12-month window. You do not have to use the calendar year. Any 12-month period ending in the tax year works, so you can bunch a heavy stretch of expenses — say, orthodontics that spanned two winters — into a single claim that clears the threshold with room to spare.
The honest bottom line
The METC is a genuine offset, not a giveaway. For a healthy year it may do little; for a year with real drug, dental, or premium costs it can matter. Treat it as a reason to keep your receipts and your premium statements, and run the numbers both ways at tax time. None of this is personal tax advice — for your situation, check Canada.ca or a tax professional.
If you are shopping for coverage in the first place, the premium is only part of the value. See what plans actually cost for your age and province and compare plans side by side — it takes about two minutes and needs no contact information.
Get Health Coverage is an independent comparison platform for individual health and dental insurance. We do not sell tax services, and nothing here is tax advice — confirm current rules and figures on Canada.ca. Plans are ranked by price, with no fee and no commission. Coverage is available in every province and territory except Quebec.
Frequently asked questions
Can I claim my private health insurance premiums on my taxes?
Often, yes. Premiums you pay to a private health services plan — which includes most individual health, dental, and hospitalization plans — are eligible medical expenses for the Medical Expense Tax Credit, as long as at least 90% of what the plan covers is eligible medical expenses. The premium is added to your other medical costs, and the credit applies to the total that exceeds a threshold. Premiums your employer pays for you generally do not count, because you did not pay them.
What is the 3% threshold on the Medical Expense Tax Credit?
You can only claim the portion of your eligible medical expenses that exceeds the lesser of 3% of your net income or a fixed dollar amount set each year (about $2,834 for the 2025 tax year, indexed annually). So if your net income is $40,000, your threshold is 3% of that — $1,200 — and only expenses above $1,200 count. Above roughly $94,000 of net income the fixed dollar cap applies instead. Always confirm the current-year figure on Canada.ca.
Which health costs qualify beyond premiums?
A wide range: prescription drugs, dental treatment, eyeglasses and contacts, many paramedical services, medical devices, and premiums to a qualifying private health plan, among others. The Canada Revenue Agency publishes a detailed list of eligible and ineligible expenses. Everyday over-the-counter products, most cosmetic procedures, and provincial health premiums that are really taxes generally do not qualify. Keep every receipt, because you claim actual amounts paid.
Should my spouse or I claim the medical expenses?
You can combine the family's eligible medical expenses on one return, and it is often better for the spouse with the lower net income to claim them, because the 3% threshold they must clear is smaller. The credit is non-refundable, so it reduces tax owing but will not create a refund on its own. Run it both ways, or have tax software do it, to see which spouse gets more value.
Over what time period can I claim medical expenses?
You can claim eligible expenses paid in any 12-month period that ends in the tax year, not just the calendar year. That flexibility lets you group a heavy stretch of dental work or other costs into one claim so more of it clears the threshold. Pick the 12-month window that captures the most expenses, and use the same window for everyone on the claim.