Compliance
Compliance Spotlight: New Rules for Home Accessibility & Medical Expense Credits
Starting 2026, changes to METC vs HATC eligibility mean you can't claim the same expense twice—this article shows you how to stay compliant and avoid surprises.
By NomadicTax Research Team • 5-8 min read • August 28, 2026
## Tax Credits Before 2026: What Was Allowed
- Medical Expense Tax Credit (METC): A non-refundable credit for qualifying medical expenses exceeding the lesser of **3% of net income** or a fixed threshold. ([canada.ca](https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/federal-government-budgets/budget-2025-cra-information-select-measures.html?utm_source=openai))
- Home Accessibility Tax Credit (HATC): For eligible renovations or alterations to make homes more accessible. Previously, you could use the **same expense** under both METC and HATC. ([canada.ca](https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/federal-government-budgets/budget-2025-cra-information-select-measures.html?utm_source=openai))
## What’s Changing: Exclusive Claim Rules
- **Effective for the 2026 and future taxation years**, expenses claimed under the METC **cannot also be claimed under the HATC** for the same expense. ([canada.ca](https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/federal-government-budgets/budget-2025-cra-information-select-measures.html?utm_source=openai))
- Key result: avoid “dual-claiming”; review last boxes carefully if you had renovations with medical overlap.
## Practical Examples & How to Handle Them
| Scenario | Prior to 2026 | From 2026 onward |
|---|---|---|
| Installing a wheelchair ramp, used for medical mobility, costing $5,000 | Claim full cost under both METC & HATC | Split claim: only claim under **one** credit for that expense |
| Building widened doorways due to a medical condition; some cost is structural | Under old, full claim under both; now must **choose** the credit most beneficial |
## Action Steps to Ensure Compliance
- Identify overlapping expenses and allocate appropriately: decide whether METC or HATC gives greater benefit—look at your tax bracket and credit rate.
- Keep meticulous invoices and documentation that separate medical vs non-medical uses.
- On tax return forms for 2026, do **not** include any expense under both HATC and METC.
- Consult CRA publications or a tax advisor if unsure how to apportion costs.
- Review previous year claims only for similar patterns to avoid repeated mistakes.
## Why This Matters
- Claiming incorrectly can lead to reassessments and interest on underpayment.
- In high renovation cost years, overlapping claims were increasing refunds inaccurately; this change helps integrity but requires taxpayer diligence.
**Summary:** Since 2026, the same expense no longer qualifies for both HATC and METC. Choose wisely, document clearly, and complete forms correctly to stay compliant and avoid costly errors.