travel expenses tax deduction canada

If devices mentioned above have not been purchased directly from a doctor, dentist, nurse or hospital , make sure you have something in writing from your medical practitioner to indicate that the device is medically required.

If you're not sure if your medical expense qualifies, follow the links below to Canada Revenue Agency information.

Cannabis as an Eligible Medical Expense

Income tax act s. 118.2(2)(u), cannabis regulations s. 264(1).

Previously, the cost of cannabis products could be eligible for the medical expense tax credit (METC) when they were purchased for a patient for medical purposes as per the Access to Cannabis for Medical Purposes Regulations , under the Controlled Drugs and Substances Act .

With the legalization of cannabis, as of October 17, 2018, eligible medical expenses include, for a patient who is the holder of an appropriate medical document , the cost of cannabis, cannabis oil, cannabis plant seeds or cannabis products purchased for medical purposes from a holder of a licence for sale for medical purposes of cannabis products. The individual purchasing the cannabis product must be registered as a client of the holder of a licence for sale.  This measure was included in Bill C-97 which received Royal Assent in June 2019.  See Licensed cultivators, processors and sellers of cannabis under the Cannabis Act .

Cannabis-related Definitions under the Cannabis Regulations s. 264(1):

Cosmetic procedures, taxtips.ca resources, canada revenue agency (cra) resources.

 - Details of medical expenses

Meal and vehicle rates used to calculate travel expenses for medical travel for each province - 2022 rates will be available in 2023

Income Tax Folios:

Revised: August 29, 2024

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Employee Tax Deduction of Travel Expenses for Commuting

Published: March 10, 2020

Last Updated: October 21, 2022

As a general rule, you may not deduct expenses from employment income except for certain employment – related expenses that are specifically allowed. One example of such an allowable deduction is the motor vehicle travel expense in a limited number of situations. An employee who is ordinarily required to perform their work away from the employer’s place of business or who is “on the road” for work at all times and is required to use a vehicle can use the travel expenses incurred as a deduction against employment income. The employer must complete Form T2200 “Declaration of Conditions of Employment” in order for the employee to be able to deduct employment expenses from his/her income.

In general, motor vehicle expenses can only be claimed as expenses related to “on the job” travel. If you drive from your home to your place of employment and then back home, you may not claim the travel costs associated with that commute. This is because Canada Revenue Agency (“CRA”) regards this use as a personal use of your motor vehicle. However, if you are required by your employer to take your motor vehicle to work and would have taken a less expensive means of transport to work had it not been for your employer’s requirement, you may be eligible to claim the costs associated with your commute to work as a deduction on your income tax return.

In the Tax Court of Canada decision of Tolson v. HMQ [2007TCC661], the taxpayer was required to travel for employment related purposes and his employer gave him two vehicle allowances – a per kilometre allowance and a fixed allowance. When claiming motor vehicle expenses, the taxpayer included the expenses associated with his daily 30-kilometre drive between his residence and his office. The taxpayer justified this by stating that the only reason he took his motor vehicle to work was because his employer required him to do so. If it had not been for his employer’s requirement, he would have carpooled or taken public transportation. The Minister denied the deduction on the basis that traveling to and from work was personal use of a motor vehicle. In addition, although the taxpayer was entitled to claim a per kilometre allowance, he did not do so. Therefore the Minister presumed that the taxpayer did not use the vehicle for employment-related purposes and denied all motor vehicle expenses.

Justice Sheridan found that the taxpayer was required to have his motor vehicle available at the office and that the only way that requirement could be satisfied was to drive it to work each day. Although counsel for the Crown suggested that the taxpayer should have left his vehicle permanently parked at the office, the judge stated that this would have deprived the taxpayer of all personal use of his vehicle and that such deprivation would be unreasonable. Therefore, the taxpayer was allowed to claim the deduction for the travel expenses associated with his commute to and from work. The taxpayer was also permitted to claim his “on the job” travel expenses despite the fact that he did not claim the per kilometre travel allowance.

Related Post

Disclaimer:.

"This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions you should consult a lawyer."

About the Author

David j. rotfleisch.

David J. Rotfleisch, a leading Canadian tax lawyer, is not only a certified specialist in taxation but also a chartered professional accountant. Most recently, David is a pioneer in Canadian crypto taxation.

As of April 2020, he was one of 12 Ontario Certified Specialists In Taxation™.

Frequently Asked Questions

How much can i claim for travel expenses without receipts.

You cannot claim any expenses without receipts. If you have receipts then you can claim business-related travel expenses except for regular commuting to and from your place of employment. You can also potentially claim for 50% of the cost of some of the meals you eat while travelling for business. Your tax lawyer or accountant will explain which ones you can claim for.

What if I get audited and don't have receipts?

If you get audited by the CRA and don’t have receipts, you will lose your deductions. There are no exceptions to this. No receipt means no deduction. Unfortunately, credit card and bank statements are not accepted as proof of expenditure. However, certain taxpayers may be able to claim some of their vehicle and meal expenses by using the simplified method.

What is the maximum I can claim on tax without receipts?

The maximum you can claim on tax without receipts is zero. The CRA only accepts deductions if you produce the original receipts or invoices. If you have lost some, you could try contacting the seller and asking for a duplicate. You need to hang onto your receipts for a minimum of 6 years because you could be audited at any time during that period.

One exception to this is work-from-home expenses during the 2020, 2021, and 2022 tax years which can be claimed using a temporary flat-rate. The flat rate is $2 for each day you worked at home due to COVID-19 to a maximum of $500 or 250 working days.

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17 medical expenses tax deductions in canada.

There is a common assumption that due to the universal healthcare system, Canadians don’t need to worry about medical costs. This assumption is untrue. Many Canadians have surprisingly steep medical bills, which is why the CRA lets Canadians claim eligible medical expenses as a credit on their taxes.

However, there are also non-eligible medical expenses. For this reason, it’s important for you to do your research on what you can claim for tax credit before claiming medical expenses.

Key Takeaways

• Eligible medical expenses must be recognized by a licensed healthcare provider.
• Expenses incurred are deductible up to $2,479 or 3% of your net income.
• Canada covers most medical expenses either as deductibles or under universal healthcare.
• Many non-eligible expenses have exceptions in certain situations. 
• You may carry over expenses from the previous year as long as they were incurred within the past 12 months.
• You may claim travel expenses for treatments in some but not all cases.
• Tax credit only applies to medical expenses not covered by another health insurance plan.

Table of Contents

• CRA-Approved Medical Expenses Tax Deduction in Canada

Medical Expenses Not Eligible for Tax Deduction in Canada

• Simplify Your Tax Preparation with FreshBooks
• Frequently Asked Questions

17 CRA-Approved Medical Expenses Tax Deductions in Canada

Eligible expenses must be prescribed by a recognized medical practitioner, needed, and paid without reimbursement. There is also a threshold of $2,479 or 3% of your net income. Here are 17 medical expenses that are approved by the Canada Revenue Agency as tax-deductible:

1. Prescription Medications 

Eligible prescription medications must be prescribed by a licensed practitioner. Over-the-counter medications do not qualify. Prescription supplements also do not qualify, with the exception of Vitamin B12. Medical cannabis may qualify if the patient has valid documentation stating the need and is registered with the licensed seller they’re purchasing from.

2. Medical Services 

Eligible medical services vary based on province, so you should consult the Government of Canada website to verify which services qualify in your province. Eligible services may be reimbursed regardless of whether you received the treatment in or out of your home province or Canada. However, the out-of-province or country practitioner must be licensed in their jurisdiction. 

3. Service Animals

Costs related to training and caring for a service animal may be eligible for tax credit in some cases. Emotional support and therapy animals do not qualify. Eligible service animals include those for:

• A physical impairment that restricts mobility
• Diabetes (for expenses incurred after 2013)
• Some psychiatric conditions in cases where the animal is trained to respond to psychiatric incidents, such as a PTSD flashback (for expenses incurred after 2017)

4. Medical Devices and Equipment 

Most medical devices are eligible if they are prescribed by a licensed practitioner. Paid assistive devices are only eligible if prescribed. For example, television closed caption decoders purchased out of pocket without a prescription would not qualify, although they would if they were prescribed.

5. Vision Care

Any device that assists with vision correction is eligible for tax credit. This includes glasses, contact lenses, laser eye surgery, and other assistive vision devices such as prescription swimming goggles. The cost of both lenses and frames for glasses is refundable on your income tax return. Medical services to help correct vision, such as regular eye exams, are also claimable expenses. 

6. Sexual Reassignment Surgery

Sexual reassignment surgery usually qualifies as a tax-deductible expense in Canada. However, the procedure must be performed by a licensed practitioner or hospital to qualify. You must also prove that the surgery is part of ongoing treatment for gender dysphoria disorder and not for cosmetic reasons. Other forms of gender-affirming care qualify as long as they meet these same qualifications. For instance, laser hair removal as part of gender dysphoria treatment would qualify, but purely cosmetic hair removal would not qualify.

7. Dental Services 

Dental services are only eligible if the service is for a medical need. This would include any dental health procedures (such as cleaning or fillings), dentures, and any necessary medications related to a dental procedure. Cosmetic dental procedures do not qualify with the exception of braces. 

8. Psychological Services 

Psychological services are only eligible if they are recommended by a medical practitioner. If mental functions are severely impacted, you may qualify for the disability tax credit. To qualify, your mental impairment must render you unable to perform everyday tasks or perform them 3 times slower than the average for a person in your age range. This must be an issue 90% of the time for a period longer than 12 months and an impairment that does not improve with the use of psychiatric medication. 

9. Nursing Care 

Any amount paid for a licensed nurse is an eligible medical expense. This includes home care attendants who help individuals perform needed functions in their everyday lives. Deductible nurse expenses include the nurse’s salary, food preparation, housekeeping, health care, some grooming expenses, transportation, and activities.

10. Travel for Medical Treatment 

Travel expenses for medical treatment are only eligible if you traveled further than 40 kilometers to receive treatment. However, you must prove that reasonable treatment was not available any closer to your home to receive a tax credit for the travel expense. You also must show that you chose the most direct route to your location and still exceeded 40 kilometers. 

Lodging expenses and accommodation expenses are only deductible if you need to travel more than 80 kilometers for treatment. Proving that there were no reasonable options closer and that you took the most direct route is also required to deduct accommodation expenses for medical travel. 

11. Healthcare Premiums 

Premiums paid toward a private health services plan may be eligible as long as 90% of the premiums go toward eligible medical expenses as specified by the Canada Revenue Agency. For instance, if ineligible cosmetic procedures take up more than 90% of the cost of your health insurance premiums, paying into those premiums wouldn’t qualify.

12. Fertility Services

Medical expenses paid to help a patient conceive a child are eligible for tax deductions. The service must be performed or overseen by a public or licensed private health centre to qualify. Expenses paid toward a surrogate mother or sperm/ova/embryo donor are eligible if incurred after 2022 and as long as the surrogate/donor is from Canada. An example of such an expense would be paying for medical exams for a surrogate mother. Freezing one’s sperm or ova with the intent of conceiving a child in the future also qualifies for deductions. 

13. Mobility Aids 

Walking aids, standing devices, wheelchairs, and crutches all qualify for a tax credit. Modified vehicles designed to allow a person with physical impairments to drive also qualify with a prescription. 20% of the fees paid for a van used to transport a person in a wheelchair can also be reimbursed. However, this amount has a limit of $5,000 with the exception of Ontario where the limit is $7,703.

14. Therapeutic Services 

The cost of personalized therapy for a person who qualifies for the disability tax credit is eligible. Rehabilitative therapy also qualifies as an eligible medical expense. Therapy must be prescribed and delivered by a licensed psychologist, doctor, or nurse depending on the nature of the mental or physical impairment.

15. Home Renovations 

Renovation expenses qualify if the renovations are to increase the mobility of a person in their own home, making them eligible for the home accessibility tax credit . They cannot be done with the expectation that the renovations will increase the value of the property. Examples may include buying and installing wheelchair ramps, lowering cabinets, or enlarging doorways. This applies to costs related to modifying an existing home or building a new house. 

16. Certain Education and Training Costs

Some training costs to help an abled person care for a disabled family member may be eligible if the disabled person is unable to function without the family member’s support. Tutoring services for a person with a severe learning disability may also qualify. Tutoring must be in addition to primary schooling and certified as needed by a medical practitioner. 

The cost of purchasing a wig may be eligible for tax credit if the person buying the wig is experiencing abnormal hair loss due to an illness, accident, or medical treatment. A licensed medical professional must verify in writing that the wig is being purchased by a person in this situation.  

Don’t miss deducting any of your eligible medical expenses on your next tax return. Watch the video below to see how you can simplify your tax preparation process with FreshBooks.

The Canada Revenue Agency specifies non-deductible medical expenses as anything that is not a medical need as verified by a healthcare provider. You also cannot claim medical expenses that are reimbursed by other means.

Non-Prescription Medications 

Any over-the-counter medications such as non-prescription painkillers, antacids, or antihistamines do not qualify. This is true even if the non-prescription medication is to help manage a chronic illness or disability. Over-the-counter medications recommended by a physician also do not count without an official prescription.

Cosmetic Surgery 

Any form of cosmetic or “plastic” surgery does not qualify if the procedure is purely for cosmetic purposes. There is an exception if the cosmetic surgery was performed under compassionate grounds. For example, prosthetic breasts may qualify for a person who received a mastectomy due to breast cancer treatment. 

Health Club Memberships 

Health club memberships including gym, fitness, and recreational centres do not qualify as eligible medical expenses. Some services offered at such a facility may qualify in some cases. For instance, physical therapy performed by a licensed physiotherapist at a health club may qualify, depending on the circumstances. 

Vitamins and Supplements 

With the exception of Vitamin B12, vitamins, and supplements do not qualify as a deductible expense, even if prescribed by a licensed physician. This also includes supplements other than Vitamin B12 that require a prescription to purchase. 

Birth Control

Non-prescription contraception is not a qualifying medical expense. However, birth control pills prescribed by a medical practitioner do qualify as a deductible expense. In this situation, the contraceptive medication must be prescribed with the intent of improving the life of someone with a medical condition that can be treated or better managed with birth control pills. 

The province of British Columbia recently made birth control free through BC Medical. While this is technically not a tax deduction, it is worth noting as this particular expense may receive more coverage in the future.

Abortion is legal in all Canadian provinces, and historically this was an ineligible medical expense. However, as of March 2023 , the Canadian government announced that abortion costs will be partially covered under universal healthcare. 

Specialized Food

With the exception of gluten-free food, specialty foods for people with dietary restrictions do not qualify as a deductible expense. This includes organic food, sugar-free food, and allergen-free food. People who wish to claim medical expenses on gluten-free food must provide written proof from a medical professional that they need gluten-free food for a medical condition, such as Celiac disease. 

Weight Loss Programs 

Weight loss programs are not a tax-deductible expense in Canada. This is true even if weight loss is recommended by medical practitioners. This also applies to weight loss supplements. Many weight loss programs and supplements are unregulated, which is why they cannot be officially claimed for a tax credit.

Cosmetic Dentistry 

With the exception of orthodontic procedures like braces and teeth straightening, cosmetic dentistry is not eligible as a deductible expense. This includes teeth whitening, veneers, and dental implant devices that are purely for cosmetic purposes. Eligible orthodontic procedures can be claimed for yourself, your common-law partner, or any dependent child under 18.

Hair Replacement or Removal

Hair replacements and hair transplant surgeries are classified as cosmetic procedures. For this reason, they do not qualify for tax credits. This also applies to hair growth serums or supplements. Hair removal procedures are not usually eligible. However, electrolysis or laser hair removal performed by a licensed medical professional does qualify for the tax credit.

Veterinary Expenses

Tax-deductible medical expenses must be for yourself or a human dependent. Veterinary expenses do not qualify, except in some cases for a service animal. In this case, the service animal is considered a medical necessity for a human, and the animal’s ability to perform is considered part of the human’s healthcare needs. Pet insurance options for non-service animals are available in Canada. However, these are not covered by federal tax under universal healthcare. 

Medical Expenses Already Reimbursed 

Medical tax credit is intended for unreimbursed medical expenses. Costs that have been reimbursed by other means do not qualify for tax credit. This includes those reimbursed by health insurance premiums, private health services, and employer medical benefits. If your health insurance plan reimbursed only part of your expenses, you may still be eligible for tax credit on the remainder in some situations. 

Medical Expenses Claimed in Previous Years

You can only claim expenses for yourself, your spouse or common-law partner, or any dependent children within 12 months of the current tax year. You may claim some expenses from the previous tax year as long as they were not claimed during that tax season. For example, while filing your 2024 tax return, you may only include expenses from 2023 if they were not already claimed on your 2023 return.

Simplify Your Tax Preparation With FreshBooks

FreshBooks stands out as one of the top accounting software tools for any small business owner. However, freelancers and self-employed individuals can also use Freshbooks to keep all of their expenses in order. Claim all your eligible medical expenses this tax season by using FreshBooks to keep track of everything you’re entitled to deduct from your taxes.

Sign up for your free trial today to see how much easier filing your income tax return could be. Try FreshBooks free !

Medical costs aren’t the only tax deductions Canadians can claim. Learn more about tax write-offs for small businesses in Canada before you file your next return.

FAQs About Medical Expense Tax Deduction in Canada

All procedures performed for medical or reconstructive purposes and reasonable travel expenses to receive treatment may be covered for you by the Canadian government. Here are the answers to some commonly asked questions about medical-related tax deductions.

What is the medical expenses tax deduction? 

The medical expenses tax deduction in Canada is a non-refundable tax credit Canadians can claim on their personal tax return. This credit is called the Medical Expense Tax Credit (METC). Because it is a non-refundable tax credit, you can subtract it from your tax owed as long as it does not bring your balance above 0.

It’s easy to track and calculate your Medical Expense Tax Credit (METC) with FreshBooks. Our accounting software lets you easily track all of your expenses in one centralized location to give you a clear picture of what you may receive from your medical expense tax credit. 

Are medical expenses tax deductible in Canada? 

Most medical expenses are tax deductible or covered by universal healthcare in Canada. Exceptions include cosmetic, veterinary, and non-prescription services. These services may still be covered in some cases.

FreshBooks can help you keep track of all your tax deductible medical costs. This way, you won’t forget to claim anything you’re entitled to at the end of this tax year.

How much medical expense can I claim on my taxes? 

The maximum amount of medical expenses for tax deduction in Canada is either 3% of your net income or $2,479, whichever is lower. For example, if 3% of your net income is $1,200, you can claim $1,200, but if 3% of your net income is $3,000, you can only claim $2,479.

Can I carry over medical expenses for taxes? 

You can carry over medical expenses for taxes if they were incurred within 12 months of the end of the current tax year. However, you need to be sure that they were not claimed by you or anyone else in the previous tax season before adding them to your current return. By tracking claims with FreshBooks, you can be sure that you’re not repeating claims this tax season.

Do I have to attach medical receipts to my tax return? 

You will need to attach your medical receipts to your tax return if you’re filing your return on paper. If you’re filing electronically, you should keep your receipts but you won’t need to attach them.

To keep your records organized, you can store financial data on your medical receipts using FreshBooks. This will help you easily retain records of all eligible medical expenses for tax deductions. 

How do you calculate medical expense tax deductions?

First, determine whether 3% of your net income is lower than $2,479. Then, take the lowest marginal tax rate in your province plus the federal tax rate and multiply it by the minimum threshold. Here’s how that will look as a formula:

• Medical Expenses – 3% or $2,479 = X
• X (Provincial Rate + 0.15) = Medical Expense Tax Credit

Note: 0.15 was chosen because 15% is the lowest marginal tax rate at the federal government level.

More Useful Resources

• Disability Tax Credit
• Home Accessibility Tax Credit

Kristen Slavin, CPA

About the author

Kristen Slavin is a CPA with 16 years of experience, specializing in accounting, bookkeeping, and tax services for small businesses. A member of the CPA Association of BC, she also holds a Master’s Degree in Business Administration from Simon Fraser University. In her spare time, Kristen enjoys camping, hiking, and road tripping with her husband and two children. In 2022 Kristen founded K10 Accounting. The firm offers bookkeeping and accounting services for business and personal needs, as well as ERP consulting and audit assistance.

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Claiming Travel Expenses: What Canadians Need To Know

• Last updated Sep 04, 2024
• Difficulty Beginner

• Category Travel

In Canada, travel expenses can be claimed as deductions on your taxes, but only under certain conditions. These expenses must be reasonable and directly related to earning business income. The Canada Revenue Agency (CRA) allows for the deduction of several types of travel expenses from business income, leading to substantial tax savings. It is important to keep records of all travel expenses and any supporting documentation to maximise your deductions.

- Transportation costs: airfare, bus, train, taxi, and car rental expenses are all eligible for tax deductions. If you use your car for business travel, you can deduct expenses like fuel, maintenance, insurance, license and registration fees, and depreciation or leasing costs.

- Accommodation: if an overnight stay is required for business purposes, you can deduct 100% of the cost of your hotel room, including phone calls, faster internet access, and laundry and dry-cleaning services.

- Meals and entertainment: you can deduct 50% of the cost of business-related meals and entertainment.

- Other travel expenses: this includes baggage fees, business calls, tips, and other reasonable expenses incurred while travelling for business.

- Conference and education fees: if attending a conference or educational event related to your current business, the registration fees and related costs might be deductible.

- Travel insurance: if purchased for a business trip, the cost can be deductible.

- Foreign exchange fees: fees incurred while converting currency for business travel can be included.

What You'll Learn

Travel expenses for medical reasons, travel expenses for business reasons, travel expenses for employees, travel expenses for shareholders, travel expenses for self-employed people.

Canada's vast landscape means that some people live in remote areas, far from medical care. The Canadian government allows citizens to claim medical expense travel credits if they need to travel a long distance to access healthcare.

Eligible Expenses

If you have to travel for medical treatment, you may be able to claim expenses for transportation, meals, and accommodation for both the patient and an attendant if required. To be eligible, there must be no equivalent medical services near your home, and you must take a direct route to your destination.

Distance Requirements

If you travel at least 40km one way to get medical services, you can claim the cost of public transportation (e.g. bus, train, or taxi). If public transportation is not available, you may be able to claim vehicle expenses.

If you travel more than 80km one way, you can claim vehicle expenses, accommodation, meals, and parking expenses.

Attendant Allowance

If a medical practitioner certifies that you cannot travel without help, you may also claim the travel expenses of an attendant, regardless of the distance travelled.

Vehicle Costs

Vehicle costs can be calculated using either the detailed or simplified method. The detailed method requires keeping track of the number of kilometres driven in the 12-month period for medical expenses, then calculating the percentage of total vehicle expenses related to those trips.

The simplified method only requires multiplying the number of kilometres travelled for medical treatment by the rate for your province, which can be found on the Canada Revenue Agency's website.

To claim meals, you must have travelled more than 80km for care. You can calculate meal costs using either the detailed or simplified method. The detailed method involves tallying the actual cost of each meal, while the simplified method allows you to claim up to $17 per meal, up to a maximum of $51 per day, including sales tax.

Accommodation Costs

To claim accommodation costs, you must have travelled more than 80km for medical services. Claims are based on receipts, and only the cost of the stay, including taxes, is eligible.

International Travel

International medical expenses may also be eligible if the following conditions are met:

• Practitioners must be authorised in their country by law, and in the case of hospital stays, the institution must be public or a licensed private hospital.
• The healthcare services must not be available in your area, and travel must be necessary to access them.

If your spouse, common-law partner, or another individual travels with you, you may be able to include their expenses in your claim. To do so, you will need a note from a medical practitioner certifying that you were unable to travel alone.

Claiming Expenses

Expenses can be claimed on line 33099 or 33199 of your tax return under Step 5 – Federal tax. You can only claim expenses that have not been or will not be reimbursed.

Travel Plans: Citizenship Application

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In Canada, business travel expenses are tax-deductible if they are reasonable and directly related to earning business income. The Canada Revenue Agency (CRA) allows for the deduction of several types of travel expenses from business income, leading to substantial tax savings.

Transportation Costs

The cost of airline, bus, train, taxi, and car rental expenses are all eligible for tax deductions. If you use your car for business travel, you can deduct expenses like fuel, maintenance, insurance, license and registration fees, and depreciation or leasing costs. You can choose to keep detailed receipts or use a standard kilometre rate set by the CRA to calculate your deduction.

Accommodation

If an overnight stay is required for business purposes, you can deduct 100% of the cost of your hotel room. This also includes the cost of any phone calls, faster Internet access, and laundry and dry-cleaning services used during your stay.

Meals & Entertainment

You can deduct 50% of the cost of business-related meals and entertainment when travelling. For example, if you spend $100 on a business lunch, you can deduct $50 from your taxes. Be sure to save all receipts to show the CRA how much you spent.

Other Travel Expenses

This can include a variety of costs such as baggage fees, business calls, tips, and other reasonable expenses incurred while travelling for business.

Conference and Education Fees

If attending a conference or educational event is related to your current business, the registration fees and related costs might be deductible.

Travel Insurance

If travel insurance is purchased for a business trip, the cost can be deductible.

Foreign Exchange Fees

Fees incurred while converting currency for business travel can be included.

Restrictions on Business Travel Expense Claims

When claiming business travel expenses, there are a few general rules to keep in mind. Firstly, you can only deduct the cost of travel that is directly related to your business activities. Secondly, you can only deduct expenses that are reasonable. The CRA will not allow deductions for first-class airfare or luxury accommodations unless there is a legitimate business reason.

Travelling to Canada with a US Student Visa: Your Comprehensive Guide

As an employee in Canada, you can deduct travel expenses from your income tax and benefit return if you meet certain conditions. These expenses include food, beverage, lodging, and transportation (such as airplane, train, or bus) costs. However, motor vehicle expenses for commuting between home and work are generally not deductible. Here are the conditions you need to meet to deduct travel expenses:

• You are required to work away from your employer's place of business or in different places.
• Your employment contract states that you have to pay your travel expenses.
• You did not receive a non-taxable allowance for travel expenses. A non-taxable allowance is generally reasonable as long as it is not more than what you actually spent.
• You have a completed Form T2200, "Declaration of Conditions of Employment," from your employer.

To claim deductible transportation expenses, fill out the "Other expenses" line of Form T777, "Statement of Employment Expenses." You can also deduct food and beverage expenses if your employer requires you to be away for at least 12 consecutive hours from your regular workplace (including the municipality and metropolitan area). The maximum deduction for food and beverage expenses is 50% of what you paid, up to a reasonable amount.

If you are a transportation employee, you may also be able to claim expenses for meals and lodging, including showers. Make sure to keep detailed records of your travel expenses, including receipts, ticket stubs, and credit card statements. These records will support your claims when filing your income tax and benefit return.

US Travelers and Bali: What You Need to Know

In Canada, travel expenses are generally only deductible if they are incurred in the course of employment duties. This means that travel between home and work is not deductible, as this is considered personal use. However, there are some exceptions where travel expenses may be deductible for shareholders.

For example, if a shareholder is required to travel as part of their employment duties, and this travel is not primarily for personal purposes, then their travel expenses may be deductible. This could include travel to attend a convention, conference, or seminar related to their business. In this case, the travel must be primarily for business purposes, and the shareholder must be able to show that their attendance benefits their trade or business.

Additionally, if a shareholder is required to work away from their employer's place of business, they may be able to deduct travel expenses, including food, beverage, lodging, and transportation expenses. However, this is only applicable if the shareholder is required to pay their own travel expenses under their contract of employment and does not receive a non-taxable allowance for these expenses.

It is important to note that the rules and regulations surrounding travel expense deductions can be complex and subject to change. As such, it is always recommended to consult with a tax professional or advisor to determine eligibility and ensure compliance with the latest guidelines.

In the context of shareholders' meetings, the IRS has issued guidelines that bar any deduction for travel expenses when shareholders attend merely to gather information for future investments. However, there have been cases where the IRS has allowed deductions for expenses incurred by shareholders who actively participate in meetings to protect their investments, such as leading a revolt or introducing resolutions. These deductions are typically allowed when specific requirements are met, such as being a main organizer of an association or having a primary purpose of forming an association to prevent dilution of stock.

Japan Travel: What to Know

Self-employed people in Canada can claim a range of business expenses to offset their net income, lower their overall income, and reduce their taxes owing. Here is a detailed list of some of the most common tax write-offs for self-employed people in Canada:

• Home Office Expenses: If you work from home, you can deduct a portion of your rent or mortgage interest relative to the space used as an office. For instance, if your home office occupies 25% of your rented home, you can deduct 25% of your total monthly rent.
• Business Supplies: Common office supplies like stationery, as well as larger purchases like computers and furniture, are deductible. Larger items are considered capital costs, so you can deduct a certain amount over time based on depreciation.
• Medical and Dental Expenses: You can deduct certain medical and dental expenses, although this typically excludes things like massage therapy or counseling.
• Professional Services: Costs associated with hiring professionals like lawyers or accountants to help with your business are deductible.
• Business Licenses and Dues: Costs related to registering your business, business licenses, and membership dues for trade or commercial associations are deductible.
• Insurance: Various types of insurance payments, such as liability insurance and tenant's insurance, are tax-deductible.
• Travel Expenses: If you travel for business, you can deduct associated costs like transportation, hotel accommodation, and meals. However, there is generally a 50% limit on meal and entertainment expenses.
• Vehicle Expenses: You can deduct vehicle-related expenses, but only for the percentage of vehicle use that is dedicated to business purposes. Keep a logbook and records to accurately claim these expenses.
• Moving Expenses: In some cases, you may be able to deduct moving expenses if you can prove that you moved your residence to start your business, and the business could not be conducted virtually.

Southwest Airlines: Solo Travel Age Requirements

Frequently asked questions.

No, you cannot deduct the cost of travel to and from work.

Yes, you can claim medical travel expenses for your medical mileage if you travel more than 40 kilometres in one direction to receive medical attention.

Yes, you can claim business travel expenses as deductions on your taxes. This includes transportation costs, accommodation, meals & entertainment, and other travel expenses.

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• Merve Nussman Author Reviewer Traveller

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Snowbird Advisor Insurance

COVID-19 Travel Insurance Coverage Options - UPDATE LEARN MORE

The Insurance Specialists for Snowbirds, Boomers and Seniors

Reduce the cost of your travel medical insurance by claiming a tax credit.

Canadian travellers may be eligible to get some money back for travel medical insurance premiums

Travel insurance can be expensive, particularly if you travel for extended periods of time, have pre-existing health conditions, or are a more mature traveller.

Fortunately, Canadian travellers may be eligible to recoup some of the cost of your travel medical insurance premium by claiming it for a CRA Medical Expense Tax Credit on your income tax return.

Medical Expense Tax Credits allow you to reduce your income tax liability by claiming travel medical insurance premiums and other eligible medical expenses on your tax return and meeting certain eligibility requirements.

Make sure you speak to your accountant to get professional advice on claiming your travel medical insurance premium as a Medical Expense Tax Credit:

In the meantime, here are a few things to keep in mind about Medical Expense Tax Credits:

• Only travel medical insurance is eligible to be claimed. Other types of travel insurance like trip cancellation/interruption insurance and baggage insurance are not eligible for Medical Expense Tax Credits. If you have an all-inclusive travel insurance policy that covers medical, cancellation/interruption and baggage, only the amount related to the medical portion of your premium is eligible for the credit. If you purchased your policy from Snowbird Advisor Insurance , you can find your total premium in the confirmation package you received at the time you purchased your policy .
• You’ll need a copy of your travel medical insurance receipt/confirmation to prove to CRA how much your premium cost and that your insurance policy was eligible for a tax credit.
• You can claim other eligible medical expenses you incur inside and outside Canada, as long as you were not reimbursed for those expenses (i.e. under an insurance plan).
• Only medical expenses that exceed a minimum dollar value threshold prescribed by the government are eligible for the tax credit.
• Any tax credit you receive won’t be for the full amount of your eligible expenses, as the government only allows you recoup a percentage of your expenses.

The bottom line is that while you won’t be able to recoup the full amount of your travel medical insurance premiums by claiming them on your tax return, it can still be a fast and easy way to save some money.

You can learn more about Medical Expense Tax Credits here.

Disclaimer:  The material provided in the Snowbird Advisor Insurance Learning Centre is for informational purposes only and does NOT constitute insurance, legal, financial or other advice, and should not be relied on as such. If you require such advice, you should speak with a qualified professional to assist you.

Travel Insurance:

Manulife coverage is underwritten by The Manufacturers Life Insurance Company and First North American Insurance Company , a wholly-owned subsidiary of Manulife, PO Box 670, Stn. Waterloo, Waterloo, ON N2J 4B8.* Manulife and the Block design are trademarks of The Manufacturers Life Insurance Company and are used by it and its affiliates under license. 

Blue Cross coverage is underwritten by Canassurance Hospital Service Association and/or Canassurance Insurance Company .*

* Certain terms, conditions, limitations, and exclusions apply, see policies for details. Some products may not be available in all provinces.

Home & Auto Insurance:

Home and Auto insurance is arranged by Canadian Insurance Alliance (2018) Inc. o/a HUB SmartCoverage (all rights reserved) and is underwritten by a number of Canadian insurers.

For more than 20 years, HUB SmartCoverage has worked with some of the largest insurance companies in Canada, servicing the home and auto insurance needs of Canadians in Alberta, Ontario and the Atlantic provinces, as well as providing residents of British Columbia with home insurance solutions.

Is Travel Insurance Tax Deductible in Canada?

Tax seasons are not a favourite for many. For most, getting assistance from a qualified accountant is the go-to option. However, understanding your tax payments and claims is paramount. If you love to travel, you probably have started exploring travel medical insurance options. And you may already have a ton of quotes from different travel insurance providers. For example, if you like travelling by boat, you can get quotes for boat insurance in Alberta and boat insurance in Red Deer . 

Confused about whether to claim your travel insurance costs when filing your income tax? Well, we will break it all down for you, so be sure to have a copy of your travel insurance documents for the income tax filing. You never know, you could save some money on your travel insurance in the next tax season!

Is travel insurance eligible for tax credits?

Travel insurance is expensive. Whether travelling for a short trip, an extended holiday with the family or are suffering from pre-existing medical conditions, anyone will tell you one thing. NEVER make travel plans without the necessary insurance. Luckily, you can recoup part of the travel medical costs via the CRA Medical Expense Tax Credit. These tax credits pave a way for travellers to cut down on their tax liability. However, one must meet certain requirements to be eligible for a claim. 

Find the best insurance rates today.

What are the travel insurance tax deduction provisions in canada .

• You can only claim travel medical costs. This eliminates other travel insurance-related claims such as travel interruption, cancellation or even baggage insurance. You may have travel insurance that provides coverage for all travel-related perils. However, the only amount that can be claimed for a refund is that which is related to the medical costs that will be incurred during the travel period. This also applies to other eligible uninsured medical expenses that a traveller incurs when travelling outside Canada. 
• Travellers can claim medical expenses incurred outside and inside Canada. However, you MUST NOT have received reimbursement for the expenses. For instance, if you have an insurance policy, your insurer must not have reimbursed the extra medical expenses incurred. 
• Employed persons cannot make claims on health benefits received by the employer which are reimbursed to the said person. However, if the insured incurred travel medical costs out of pocket, then they can file a tax claim. 
• Medical costs paid to a private health services plan for a spouse, self or anyone connected by blood can be claimed on the income tax. 
• You will be required to provide documents that show proof of your medical travel insurance to CRA. This will show the cost of the premium and the eligibility of the policy for a tax credit. As such, you should ensure you safely store the travel medical insurance receipt if you plan on making a claim. 
• You will not receive the medical travel expenses in full in the tax credit. The Canadian government only reimburses part of the travel medical expenses. 
• The Canadian government only offers tax credits for medical expenses up to a minimum dollar value threshold. 
• If an employer makes contributions for the employees to a private health services plan, the employees will not be granted any taxable benefit, meaning that they can not make a claim. However, if an employee pays medical premiums to a private health services plan, the costs qualify as medical expenses. As such, the employee can claim the travel costs and reap the tax deduction benefits. 

Want to have a stress-free travel experience? Here are some common travel insurance mistakes to avoid. 

• Not disclosing your true health status - Most travel insurers do not provide coverage for pre-existing conditions. If you receive treatment for a pre-existing condition that was not declared, your insurer may decline your claim or even cancel your policy. This may also make it difficult to claim a tax refund on the amount of out-of-pocket expenses incurred. 
• Purchasing a travel insurance policy based on price as opposed to coverage - Travel insurance can be expensive. Most travellers often make the mistake of purchasing a policy based on the pricing and ignore the coverage. Given that cheaper insurance plans may not provide sufficient coverage, always be on the lookout for the deductible amounts and reimbursement amounts. 
• Failure to scrutinize the policy’s exclusions and limitations - Insurance policies have coverage exclusions and limitations. For instance, your travel insurance may not provide coverage for some sporting activities such as parachuting. To avoid getting unpleasant surprises when making claims, ensure you discuss your travel plans with your insurer and get clarification on the coverage provided. 
• Failure to purchase coverage for the entire duration of the trip - Travel insurance should provide coverage for the entire trip. While it is not wrong to extend the duration of your trip, ensure you contact your insurer and inform them of the travel dates changes. 
• Travelling to a different province in Canada without travel insurance - Most Canadian residents ignore the fact that provincial health insurance does not provide coverage for all emergency medical care costs when outside your province. For instance, ambulance and prescription drugs are not covered under the provincial health insurance plan, meaning that you will be required to pay out of pocket if need be. 
• Relying only on free travel insurance coverages - You may have travel insurance included in your credit card, bank account or even your group insurance. However, take time to understand the coverage provided. Most free insurance plans provide the least coverage and are, in most cases, not suitable for travel plans, especially without another travel insurance plan. 
• Purchasing travel insurance too late - Travel insurance is often forgotten when making travel plans. Buying travel insurance too late may limit a traveller from comparing quotes from other insurance. When purchased late, you are most likely to pay exorbitant rates. 

While you will not receive the full travel expenses incurred when you make a tax claim, you can still save some money on your medical travel expenses. Tax claims can be uncertain. However, remember it is always wise to claim and receive no reimbursement than not to claim at all and miss out on a refund. If you are planning on making a claim, always ensure you have your papers, receipts and any other vital information that may be required.   

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Canada Revenue Agency: 3 Essential Tax Breaks Canadians Shouldn’t Overlook

You can claim the dividend tax credit if you realize large dividends from First National Financial (TSX:FN) stock in a taxable account.

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Do you ever wish that you didn’t have to pay so much tax?

In a way, it’s a silly question. Almost everybody would like to have more take-home income. Despite this, relatively few people actually take the time to lower their tax bills.

They should! Most people incur several expenses in the run of a year that can be claimed as deductions or credits. These work to lower taxes payable. In this article, I will explore three tax breaks that you might be able to claim in 2024.

Tuition fees

Tuition fees create tax-creditable expenses you can claim when you file taxes. The credit for tuition fees is 15% of the amount spent on tuition. So, for example, if you spent $10,000 on tuition in a given year, you can shave $1,500 off your tax bill.

There are some nuances pertaining to eligibility for the tuition tax credit:

• You need to be 16 or older to claim the credit.
• You have to attend an “eligible” post-secondary institution to claim the credit.
• You or your parents can claim the credit, but not both of you.
• You can claim tuition fees for certification courses if the courses are required to obtain a professional designation in Canada.
• You can’t claim travel, lodging or grocery expenses related to your education.

Basically, anybody attending a Canadian post-secondary institution can claim the tuition tax credit unless somebody else pays for their schooling. Interest on student loans is tax deductible, so don’t forget that tax break, either.

Disability tax credit

Next up, we have the disability tax credit. This is a tax credit you can claim if you are disabled or supporting a disabled family member. You can claim amounts pertaining to your/your loved one’s disability—for example, medication, home upgrades (e.g., ramps for people in wheelchairs), etc. There is theoretically no maximum amount that can be claimed for this credit; however, if the credit reduces your taxes to zero, the Canada Revenue Agency will not allow you to claim any more expenses beyond that point.

Dividend tax credit

Last but not least, we have the dividend tax credit. This is a non-refundable credit that removes some of the taxes you would otherwise pay on dividend income. The credit is 15% of a “grossed up” amount (more on that in a minute), plus a provincial credit. It can go a long way toward helping you build wealth .

Let’s imagine that you held $100,000 worth of First National Financial ( TSX:FN ) stock in a taxable account in Ontario. FN is a dividend stock yielding 6.57%. That means that you get $6,570 in annual dividend income from it if the yield doesn’t change.

How much tax would you pay on those dividends from First National Financial stock?

First, we have to gross up the dividends. To “gross up” means to account for the fact that the dividends have already been taxed. Since FN is a Canadian stock paying eligible dividends, the gross-up is 38%. So, for tax purposes, your $6,570 in dividend income becomes $9,066.

Second, you calculate your pre-credit tax by multiplying your marginal tax rate by the dividend amount. If your tax rate were 33%, your pre-credit tax would be $3,022.

Third, you calculate the 15% Federal Credit on $9,022 ($1,353) and subtract it from your pre-credit tax. This takes you to $1,669.

Finally, you remove $902 for Ontario’s 10% provincial dividend tax credit, leaving you owing $762. So, your ultimate tax is 74.6% lower than what you’d have paid without the dividend tax credits! Now, that’s a credit you don’t want to miss.

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Students: It pays to do your taxes!

September 4, 2024

Ottawa, Ontario

Canada Revenue Agency

Heading back to school? Make sure tax literacy is on your course calendar! Understanding taxes will help you make smart decisions about your finances – how to put money in your pocket and help you save for a holiday, a car, or a house of your own.

Money in your pocket

• If you are 19 years or older, you may be eligible to receive a GST/HST credit payment four times a year to help with your expenses, even if you do not earn any income.
• Get the Canada Carbon Rebate , a tax-free amount to help eligible individuals and families offset the cost of the federal pollution pricing.
• Have a child under 18? The Canada child benefit helps with the cost of raising your family.

Improve your tax literacy

• Learn about your taxes : a self-paced online learning tool to help you understand what taxes are, how to do them, and what’s in it for you.
• Access free webinars : engaging, user-centric content prepared for students.

Mind your business

If you work while in school, most of your income—like wages, scholarships, and grants—is taxable. Take action now to save yourself headaches at tax time.

• Reporting all your income is important and even tips count! Make sure you know what needs to be reported on your taxes. Learn more: Common types of income for students - Canada.ca
• If you work through an app or a website, you might be considered self-employed. Different tax rules apply when you’re self-employed. Learn more: Starting to work – Learn about your taxes - Canada.ca
• Keep your records for 6 years. This includes emails, contracts, and receipts—about your income sources. It helps at tax time!

Maximize your deductions and claims

There were over 2.4 million claims for tuition, education and textbook expenses in the 2023 tax year. This includes both claims made by students and claims transferred to other qualified individuals. Did you claim what you’re entitled to? If not,

• 16+ and taking post-secondary courses? You can claim tuition credit to reduce what you owe or you could carry it forward. You can also transfer an amount to your parent, grandparent or spouse, which in turn can reduce their taxes. It’s a win-win!
• Moved for school? You can claim moving expenses if your new home is at least 40 km closer to school.
• Paid interest on student loans ? You might claim that too, or you could carry it forward and claim it later.

Use our digital tools for easier access to your tax information

• My Account is a cool tool that lets you check the next benefit payment date, the status of your tax return, and keep your personal information up to date.
• Use your cell phone and a government issued photo to register for CRA sign-in services including My Account.
• Sign up for direct deposit in My Account and get your tax refund and benefit payments deposited directly into your account.

Need help? Free tax clinics can help

• Free tax clinics (in person or virtual) are offered between March and April across Canada, but some are open year-round. Find the right clinic for you .
• Looking to volunteer and get work experience? Free tax clinics are always looking for volunteers – you can file tax returns but there’s other roles, too. Visit Volunteer at a free tax clinic for more information.

Media Relations Canada Revenue Agency 613-948-8366 [email protected]

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