See how self-paid health premiums and medical costs turn into a non-refundable tax credit, after the income threshold.
Your threshold is the lesser of 3% of this or the fixed cap.
Association / individual extended-health premiums you pay yourself qualify (§4.3.3).
Prescriptions, dental, vision, and other CRA-eligible costs not reimbursed by a plan.
Total eligible
—
Premiums + other expenses
Threshold applied
—
—
Claimable amount
—
Above the threshold
Federal credit (15%)
—
Non-refundable
How this works. The medical expense tax credit is non-refundable: it reduces tax you owe. You total your eligible expenses over a 12-month period, including
health-plan premiums you pay yourself (employer-paid group premiums don't count), then subtract a threshold equal to the lesser of 3% of your net income or a fixed cap
(about $2,759, indexed each year and used here as an illustrative figure). The federal credit is 15% of whatever remains. Provincial credits add more on top and vary by province.
Educational illustration of standard Canadian insurance concepts. Figures are illustrative, not an insurer’s rates.
Illustration only, not a quote or advice. Figures are simplified for education and do not
reflect any specific insurer's rates. Consult a licensed advisor.