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)
- 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)
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)
- 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.