As tax season approaches, many are looking for ways to maximize their returns through health-related tax credits. In 2026, taxpayers may qualify for various credits from both federal and provincial governments in Canada. Understanding these credits is crucial for ensuring you take full advantage of available benefits.
Understanding Tax Credits
Tax credits come in two categories: refundable and non-refundable. Refundable tax credits provide a payment even if you owe no tax. For example, if your tax liability is $2,000 and you qualify for $4,000 in refundable credits, you would receive $2,000 back. Conversely, non-refundable credits only reduce your tax liability. If you had $2,000 in tax owed and $4,000 in non-refundable credits, your balance would be $0, but you would not receive any payment.
Key Health Tax Credits for 2026
Medical Expenses
- For federal claims, you can request credits for medical expenses exceeding 3% of your net income or $2,397.
- Provincially, expenses that exceed 3% of net income are also eligible.
- Expenses reimbursed by insurance providers cannot be claimed.
Vision Care
Costs for prescription glasses, contact lenses, and corrective eye devices are eligible for deductions. This includes specialized eyewear such as prescription sunglasses or swimming goggles.
Gluten-Free Food Costs
Individuals with celiac disease can claim the differential costs associated with gluten-free products. Only the difference in price between gluten-free and regular products can be claimed as medical expenses.
Tax Credits for Children’s Activities
Parents can take advantage of a refundable tax credit for eligible children’s activities, including sports and recreational programs. The activity must last at least eight consecutive weeks or five continuous days, and the family income should not exceed $168,470.
Additional Credits
Disability Tax Credit (DTC)
- The DTC is a non-refundable credit to assist individuals with disabilities and their caregivers.
- For 2025, the amount is $10,138, with an additional $5,914 for those under 18 at the end of 2025.
Support for Seniors
Available for Quebec residents aged 70 and older, this refundable tax credit may provide up to $2,000, depending on family income.
Caregiver Credit
Those caring for a dependent with a physical or mental disability living in their home may claim this non-refundable credit, potentially saving up to $8,375 on taxes.
Home Accessibility Tax Credit
Renovations made to enhance accessibility for seniors or disabled individuals can be claimed, with eligible expenses up to $20,000.
In summary, leveraging health tax credits in 2026 can significantly impact your overall tax return. Staying informed about eligible expenses and conditions ensures you maximize the benefits available to you. Visit El-Balad for further details on how to optimize your tax filings.
