Fertility treatment costs can be significant—but you may be eligible for a valuable tax credit in Ontario.
Navigating the financial aspects of fertility treatments can be challenging. Fortunately, the Medical Expense Tax Credit (METC) offers a way to alleviate some of these costs by allowing you to claim eligible medical expenses on your income tax return.
The METC is a non-refundable tax credit that enables Canadian residents to reduce their taxable income by claiming qualifying medical expenses, including certain fertility-related costs. This credit can be applied to expenses for yourself, your spouse or common-law partner, and certain dependents.
You may be able to claim expenses such as:
- In Vitro Fertilization (IVF)
- Intrauterine Insemination (IUI)
- Intracytoplasmic Sperm Injection (ICSI)
- Fertility medications prescribed by a licensed medical practitioner
- Egg and sperm retrieval and storage (when medically necessary)
- Embryo freezing and storage
- Laboratory fees associated with assisted reproductive technologies
- Fees paid to fertility clinics or donor banks for sperm or ova acquisition
Note: Expenses must not have been reimbursed by insurance or any other source to be eligible for the METC.
Certain expenses are typically not eligible for the METC, including:
- Over-the-counter medications and supplements
- Cosmetic procedures not medically necessary
- Non-prescription fertility-related products
- General wellness programs or fitness memberships
It’s crucial to retain all receipts and documentation for your expenses, as the Canada Revenue Agency (CRA) may request them to verify your claims.
To determine your potential METC:
- Total your eligible medical expenses for the tax year.
- Subtract the lesser of:
- 3% of your net income, or
- A fixed threshold amount (e.g., $2,635 for the 2025 tax year; this amount is indexed annually).
- The remaining amount is the portion you can claim as a non-refundable tax credit on your federal tax return.
For Ontario residents, a similar calculation applies to your provincial tax return.
- Organize your receipts: Keep all medical expense receipts in one place to simplify the claiming process.
- Consult a tax professional: A tax advisor can help you identify all eligible expenses and ensure you’re maximizing your credit.
- Stay informed: Tax laws and eligible expenses can change; regularly check the CRA website or consult your tax advisor for updates.
Always consult your personal tax advisor to confirm your eligibility and receive personalized guidance.
It’s crucial to retain all receipts and documentation for your expenses, as the Canada Revenue Agency (CRA) may request them to verify your claims.
