cra medical expenses travel per km

How to claim CRA medical travel expenses for 2023

The costs involved with traveling to receive medical attention can be significant when you factor in accommodation, meals, and related expenses.

Find out how to claim your CRA medical travel expenses.

IMPORTANT: All claims related to Medical Travel require documentation provided by the practitioner confirming your attendance (whether this be a receipt for services, or a letter signed by your service provider).

Claiming Mileage

There are two ways to claim transportation costs as a CRA travel medical expense but you have to travel at least 40 kilometers one way to obtain medical service that were not available locally.

Example: for trips to and from the hospital, clinic, or doctor’s office.

Record the distance of travel, calculate your mileage according to the province in which you reside. (2021 rates):

Example: 55¢ x 160km = $88.00; you may claim $88.00 as an eligible medical expense.

Vehicle expenses may be claimed as CRA medical travel expenses by submitting gas receipts for the date(s) of travel/service.

Claiming Meals, Accommodations and Parking

In addition to the transportation costs above, you may claim reasonable expenses during your trip for medical attention provided that you had to travel more than 80 kilometers to attend your appointment. The travel costs of one accompanying individual are also allowable, if it is deemed necessary to have a companion.

Meals can be claimed one of two ways: 1. Meal receipts can be submitted for reasonable costs for the patient and one attendant (alcoholic beverages will not be reimbursed) OR 2. A flat rate of $23 per meal may be claimed for the patient and one attendant up to a maximum of $69 per day per person.

Accommodations

Receipts must be enclosed for any reasonable accommodation fees that are being claimed (ie: hotel receipt). Coverage applies to the accommodations ONLY; telephone, movie charges and the like are not eligible for reimbursement.

Receipts must be enclosed for any parking lot fees incurred. Please refer to the CRA medical travel expenses website for further details

A farmer lives in rural Alberta. There is not much in the way of medical services, vision care, or therapeutic care, such as physiotherapy, available in this small town.  Consequently, most treatment modalities require travelling to a center that has the appropriate medical facilities. The closest center is 44 kilometers from their home.

On a recent trip, they had chiropractic services performed and managed to visit the dentist for a check-up and teeth cleaning.  They were eligible to be reimbursed for the cost of the travel between their home and where the services took place.

In Alberta, that amounts to 53 cents a kilometer – so they were also able to claim $46.64 for travel expenses (there and back).  An alternative is to submit gas receipts for the dates of travel service.

On occasion, the same farmer requires a medical service that was only available on a timely basis in a major medical facility in the USA. This service was available in Canada but the wait time was over six months and the inconvenience to our customer as a result of their condition necessitated a faster remedy. They chose the US destination for the service.

As the travel distance now exceeded 80 Kilometers, in addition to the travel costs (economy class air fare), our customer can claim reimbursement for meals, accommodations, parking as well as the costs associated with a companion travelling with the patient if deemed necessary. An eligible travel expense claim of this magnitude represents a significant savings. 

How to write off 100% your medical expenses

Are you an incorporated business owner with no arm's length employees? Learn how to use a Health Spending Account to pay for your medical expenses through your corporation:

Do you own a corporation with arm's length employees? Discover a tax deductible health and dental plan that has no premiums:

Write off 100% of your medical expenses

Are you an incorporated business owner with no employees? Learn how to use a Health Spending Account to pay for your medical expenses through your corporation: 

Do you own a corporation with employees? Discover a tax deductible health and dental plan that has no premiums:

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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: March 22, 2024

CRA Mileage Rate 2024: Guide to Tax-Free Vehicle Allowances For Business Travel

Cra mileage rate 2024.

Are you an employee, small business owner, or self-employed individual looking to understand the rules and regulations of CRA mileage rate this 2024 ? Canadian taxpayers need to be aware of what they can expense on their taxes as entertainment, such as meals or kilometres travelled in a car.

We will discuss all relevant to ensure you maximize your deductions for businesses travelling while remaining compliant.

Key Takeaways

• 70¢ per kilometre for the first 5,000km driven
• 64¢ per kilometre after that
• 74¢ per kilometre for the first 5,000km driven
• 68¢ per kilometre after that

Changes to the CRA mileage rate for 2024

When reimbursing employees for business travel, the Canada Revenue Agency (CRA) has set out a specific set of rules that employers must adhere to. Canadian taxpayers should be aware of these rules when managing their business expenses to avoid any penalties from the CRA.

The 2024 standard CRA mileage rate per kilometre is currently 70 cents with a 4-cent per kilometre reduction after the first 5,000 kilometres driven yearly.

Here’s the CRA’s Automobile Allowance Rates for the past five years:

You can report any tax-subjected automobile allowances paid to employees or officers on Form T2200 Declaration of Conditions of Employment .

Employers can claim input tax credits based on reimbursements made for these expense claims but must ensure they keep detailed records alongside invoices related to any incurred costs.

Businesses must recognize reimbursement requirements, as failure to comply could result in CRA-implemented fines and other financial penalties, which will financially affect both employers and their staff.

What is CRA mileage allowance and tax-free vehicle allowance in Canada?

The CRA mileage rates are a guide set by the Canada Revenue Agency to reimburse taxpayers for vehicle expenses incurred for business use. They calculate the deductible expenses related to operating a vehicle for business, medical, moving, or charitable purposes. Taxpayers can use these rates to calculate their deductible vehicle expenses when filing their income tax returns.

How to use the 2024 CRA mileage rate and automobile allowance: Salaried workers, Self-employed, and Employers

Mileage reimbursement rules for salaried workers.

Employees may be eligible to claim allowable motor vehicle expenses on their income tax return if they incurred these expenses under the terms of their employment contract. For instance, if an employer agrees to reimburse travel expenses for using one’s personal vehicle for work-related tasks.

However, it’s essential for employees to maintain accurate records and evidence to substantiate that the kilometers claimed were indeed for business purposes.

Mileage Reimbursement Rules for Self-employed

Self-employees can also deduct business-related vehicle expenses. This also applies to personal cars used for business purposes such as purchasing supplies for your businesses, meeting with clients, attending conferences, or visiting customers. Other expenses may also include:

• License and registration fees
• Fuel and oil expenses
• Insurance fees
• Maintenance and repairs expenses
• Leasing costs
• Capital cost allowance

The allowance will be deducted in the annual tax returns. But remember, self-employees must keep receipts and invoices in order to get deductions. Expenses incurred for personal use of their personal vehicle will not be eligible for coverage under the allowance.

Mileage Reimbursement Rules for Employers

There is no law mandating that employers must compensate employees for using their personal vehicles for business purposes – this depends on individual company policies or contracts.

Nevertheless, implementing a mileage allowance using Canada Revenue Agency (CRA) standards can make a job offer more attractive to potential employees, as it compensates for their personal vehicle usage.

With a CRA mileage allowance, employers are obliged to cover employees’ work-related vehicle expenses. This reimbursement also provides a tax benefit for the company. To qualify as legitimate and tax-deductible, the reimbursement should:

• Cover the yearly amount of kilometres driven solely for business purposes
• Be based on a reasonable per-kilometre rate or slightly lower than the official CRA vehicle allowance rates
• Be for the employee who hasn’t already been reimbursed for the same use of their vehicle.

If these conditions are met, the mileage reimbursement is considered a non-taxable benefit for employees.

Eligibility For CRA Mileage Rate 2024 And Tax-Free Vehicle Allowances

The CRA provides rules and regulations for claiming tax-free vehicle allowances and mileage rates when travelling for business purposes.

You are also eligible if you use your car to attend conventions, seminars or meetings, and other activities with work-related purposes away from home. But travelling from your home to your normal place of work is not considered business-related driving.

The type of transportation used is essential—employees using public transport, such as buses and subways, do not qualify for any reimbursements. At the same time, those who choose personal cars will receive a predetermined per-kilometre rate (according to the CRA standard mileage rate as shown above).

4 Types Of Business Travel Eligible For CRA Mileage Rates And Tax-Free Vehicle Allowances

• Regular Work Locations
• Temporary Work Locations
• Home Office as a Regular Work Location
• Commuting to Work

Whether travelling for regular work locations, temporary work locations, home office or commuting to work, you’ll find everything you need to know about the CRA mileage rates and tax-free vehicle allowances here.

Canada Revenue Agency (CRA) defines regular work location as any workplace that the employee visits at least once a week on a sustained basis for a purpose related to their employment.

It includes both long-term and short-term job positions or assignments. The employer must be able to provide sufficient proof of attendance; records such as timesheets should help demonstrate this.

In addition, travel expenses associated with these locations are only eligible for reimbursement if they are located more than 80 km (one way) from the primary place of business or residence of the employee.

For example, an accountant who works in Toronto but travels to Ottawa each weekend would likely qualify for CRA mileage rate reimbursements since it’s more than 160 km one way between cities—even if he has not been assigned there permanently yet.

Any work location other than an employee’s regular place of employment is considered a “temporary” work location and would be eligible for mileage rate and tax-free vehicle allowances.

According to CRA guidelines, temporary locations last up to four weeks or have been pre-approved by the employer in writing. Considering all surrounding circumstances, the employer must demonstrate why the travel was reasonable.

Any expenses related to this travel, such as lodging, meals, allowance and specific motor vehicle rates, can be deducted from income if proven to be necessary business or relocation expenses incurred during that journey.

• Home Office As A Regular Work Location

Home offices may qualify for either CRA mileage reimbursement or tax-free vehicle allowance when it is determined to be a regular work location.

To qualify as a regular work location, the home office must be used for working with clients or customers more than 50% of the time each month and must meet specific criteria, such as having private entrances, separate telephone lines and an exclusive portion of the residence dedicated solely for business activities.

• Commuting To Work

Commuting expenses incurred while travelling to and from work regularly are usually not eligible for mileage rate or tax-free vehicle allowance benefits under the CRA.

However, Canadian taxpayers can claim certain commuting expenses for business activities associated with their job or profession that require them to travel and attend industry events or other such engagements away from their workplace.

To be eligible, the primary purpose of this travel must be generating income by performing duties related to your job/profession rather than commuting between home and work.

LEARN MORE: How to Find the Best Tax Accountant Near Me

Mileage Reimbursement Implications

Tax implications.

In Canada, tax deductions are available to businesses for business travel expenses, including mileage and car allowances. Mileage allowance paid to employees or officers is treated as a taxable benefit subject to the employer’s income tax withholding at source.

If an employee is provided with the use of a company car, this will be presented as part of their salary, and taxes will be deducted accordingly. For employers, eligible expenditure on providing car allowances to employees may also qualify for input tax credits if applicable according to prevailing rules in each province or territory.

Accurate tracking and record-keeping are essential when claiming CRA mileage rates and tax-free vehicle allowances for business travel. Recent changes have been implemented regarding the supporting documentation that employers must keep to claim certain deductions from their business’s income taxes relating to these types of expenses (e.g., a detailed log that includes the date of travel, route taken, and distance travelled).

If you need clarification about the tax implications, you can always consult a tax accountant who can help you with personal and corporate tax matters.

External Influences

• Economic Conditions : Rates might be adjusted to align with prevailing economic conditions.
• Cost of Fuel: Fluctuations in fuel prices may cause the allowance rate to increase or decrease.
• Inflation Rates: General inflation can affect the cost of vehicle maintenance, repairs, insurance, and other related expenses. CRA might adjust the mileage allowance accordingly.
• Policy Changes: Any new regulations regarding business expenses and reimbursements might necessitate changes to the allowance.
• Technological Advancements: The increase in electric and hybrid vehicles can affect the per-kilometre cost calculation regarding vehicle expenses, which could potentially impact the CRA mileage allowance.

3 Tips For Managing Business Travel Expenses and Mileage Tracking

– Provide clear guidelines for employees to follow when tracking and recording business travel expenses, such as keeping detailed records and utilizing technology.

1. Keep Detailed Records

Keeping detailed records of business travel expenses is essential for Canadian taxpayers. It helps to accurately calculate CRA mileage rates and tax-free vehicle allowances and avoid potential issues during an audit from the Canada Revenue Agency (CRA). Taxpayers need to keep records such as:

• Gas receipts

• Oil changes

• Car maintenance & repair costs

• Insurance payments

• Any other related out-of-pocket expenses

By keeping these mileage records, Canadian taxpayers can easily track their business travel expenses and ensure everything is accounted for correctly. Further, it provides evidence that any vehicle deductions are legitimate, so there are no problems or additional costs associated with CRA audits. Technology can also help Canadians monitor their spending by using various automatic mileage tracking tools, such as Driversnote’s expense reimbursement system and tracking tool – perfect for managing business trips abroad or just around town!

2. Use Technology To Track Vehicle Expenses

Technology can be a valuable tool for managing business travel expenses associated with CRA mileage rates and tax-free vehicle allowances. Mileage tracking apps and other tools can enable accurate record-keeping and precise calculations, which can help taxpayers claim total tax deductions. Keeping a detailed log of trips is still necessary, but using technology reduces the need for manual tracking of odometer readings while adding convenience.

Examples of mileage tracking apps include TripLog , MileIQ , QuickBooks Self Employed , etc. Additionally, businesses may install GPS units on employee vehicles to keep track of automobile-related expenses for various purposes, including deduction claims at year-end taxes or providing client billing information when required.

Using these apps or tools can make managing business travel expenses in different locations within Canada easier by automatically tracking all drives based on time spent driving as per kilometre rate set by the CRA standard mileage allowance (SMA). It saves time to manually enter odometer readings every time an individual travels between two points, ensuring that no detail remains unaccounted during tax filing or claiming expenditures from bosses/employers, respectively.

DISCOVER: Free Resources

3. Reimburse Employees Promptly

Employers must ensure that employees are reimbursed promptly and accurately for travel expenses on business trips to avoid any potential complications or legal ramifications.

Promptly reimbursing employees helps maintain employee morale and makes them feel empowered and valued, primarily if the employer guides them in navigating the expense system. Hence, they know exactly what to do when their reimbursements will be delivered and why it’s crucial.

According to Canadian tax laws, employers who provide an automobile allowance must maintain documents clearly outlining this arrangement and documenting all claims made by employees against it via an expense reimbursement form.

Furthermore, failure to automate the process in some way may lead to delays with repayment — another aspect that should be addressed in such arrangements.

• Understanding Provincial/Territorial Allowances and Mileage Rates in Canada

Canadian taxpayers are responsible for understanding the differences between federal and provincial/territorial allowances when claiming expenses related to business travel.

The CRA has a standard mileage rate of $0.70 per kilometre for the first 5,000 kilometres driven each year; however, some provinces or territories might have additional tax-free vehicle allowance amounts based on their accommodations, cost of living or other particular circumstances that could increase the amount an individual can claim up from CRA’s base rate.

CRA Mileage Rate 2024 Conclusion

As business travel can be complicated and expensive, understanding the CRA mileage rates and tax-free vehicle allowances is essential. Following the rules prescribed by the Canada Revenue Agency (CRA) can save time, money, and energy when preparing your taxes.

The key takeaway from this article is to keep records of all your travels—including destinations, distances travelled, and dates—and submit accurate expense reports for CRA mileage reimbursement or claim for a business vehicle allowance as per eligible criteria as soon as possible.

Common questions related to CRA Mileage Rates this 2024 And Tax-Free Vehicle Allowances For Business Travel relate to eligibility criteria for claiming deductions on taxes relating to business trips; applicability of different rates in various provinces/territories; use of technology tools for tracking expenses; etc., all of which have been addressed throughout this article.

It’s also essential to remember that expenses must adhere to guidelines set forth by the Canada Revenue Agency’s prescriptions for deductions to apply on personal income tax filings.

1. What are the CRA mileage rates for business travel?

The Canada Revenue Agency (CRA) sets a mileage rate for business travel for automobile and bicycle use. Currently, the kilometric rate is set at $0.70/km (2024)for taxis, cars or vans leased or owned by employees.

2. How do you calculate vehicle allowances provided by employers through CRA?

To calculate vehicle allowance amounts provided by employers using the CRA mileage rate, multiply an employee’s total business kilometres driven during a given tax year with the corresponding kilometric rate of ($0.70 per km 2024 for the first 5,000km and $0.64 thereafter). This amount should be included in Box 14 on their T4 slip from the employer to declare it as income when filing taxes every year unless the allowance meets certain criteria and is considered “reasonable.”

3 . Are car expenses covered under my prescribed mileage rates allowance?

Yes – once you met CRA’s conditions, reimbursed car expenses such as insurance costs and eligible lease payments are intended to be covered by your prescribed mileage rates allowance according to CRA guidelines.

Are you looking for assistance with your personal or corporate taxes? Look no further than CPA Guide. Our network of top accountants and accounting firms in Canada will help you find the best CPA to suit your needs. Get started today with CPA Guide .

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Lines 33099 and 33199 – Eligible medical expenses you can claim on your tax return

On this page, medical expenses you can claim, how to claim eligible medical expenses on your tax return, documents you need to support your medical expenses claim.

• Claiming medical expenses for a person who died

Credits and deductions related to medical expenses

Doing taxes for someone who died.

To know for whom you can claim medical expenses, see How to claim eligible medical expenses on your tax return .

You can claim only eligible medical expenses on your tax return if you, or your spouse or common-law partner:

• paid for the medical expenses in any 12-month period ending in 2023
• did not claim them in 2022

Generally, you can claim all amounts paid, even if they were not paid in Canada.

For all expenses, you can only claim the part of the expense that you or someone else have not been and will not be reimbursed for. However, the expense can be claimed if the reimbursement is included in your or someone else's income (such as a benefit shown on a T4, Statement of Remuneration Paid (slip) , and the reimbursement was not deducted anywhere else on the tax return.

List of common medical expenses

This list of common medical expenses shows:

• types of medical expenses
• if the expense is eligible
• if you need any supporting documents (such as Form T2201, Disability Tax Credit Certificate )

This list is not exhaustive. You can use the search feature of this list to quickly find a specific medical expense. For more information on eligible medical expenses, see Income Tax Folio S1–F1–C1 , Medical Expense Tax Credit .

You can claim eligible medical expenses on line 33099 or line 33199 of your tax return (Step 5 – Federal tax).

Line 33099 – Medical expenses for self, spouse or common-law partner, and your dependant children under 18

Use line 33099 to claim the total eligible medical expenses that you or your spouse or common-law partner paid for any of the following persons:

• your spouse or common-law partner
• your or your spouse or common-law partner's children who were under 18 years of age at the end of the tax year

Line 33199 – Allowable amount of medical expenses for other dependants

Use line 33199 to claim the part of eligible medical expenses that you or your spouse or common-law partner paid for any of the following persons who depended on you for support:

• your or your spouse or common-law partner's children who were 18 years of age or older at the end of the tax year, or grandchildren
• your or your spouse or common-law partner's parents, grand-parents, brothers, sisters, uncles, aunts, nephews, or nieces who were residents of Canada at any time in the year

Amounts you can claim

Follow these steps to find out how to calculate the amount to enter on lines 33099 and 33199 of your tax return.

On line 33099 of your tax return (Step 5 – Federal Tax), enter the total amount that you or your spouse or common-law partner paid in 2023 for eligible medical expenses.

On the line below line 33099, enter the lesser of the following amounts:

• 3% of your net income ( line 23600 ) or

Subtract the amount of step 2 from the amount on line 33099, and enter the result on the following line of your tax return (Step 5 – Federal tax ) .

Claim the corresponding provincial or territorial tax credits for individuals on line 58689 of your provincial or territorial Form 428 . If you live in Quebec, visit Revenu Québec .

Compare the amount you can claim with the amount your spouse or common-law partner would be able to claim. It may be better for the spouse or common-law partner with the lower net income (line 23600) to claim the eligible medical expenses.

You have to do the following calculation for each dependant.

Add up the total amount that you, or your spouse or common-law partner paid in 2023 for eligible medical expenses.

Find out which amount is less between:

• 3% of your dependant's net income ( line 23600 ) or

Subtract the lesser amount from Step 2 from the amount from Step 1. Enter the result on line 33199 of your tax return ( Step 5 – Federal Tax) .

Claim the corresponding provincial or territorial tax credits for individuals on line 58729 of your provincial or territorial Form 428. If you live in Quebec, visit Revenu Québec .

Richard and Pauline have two children, Jen and Rob. They have reviewed their medical expenses and decided that the 12-month period ending in 2023 they will use to calculate their claim is July 1, 2022, to June 30, 2023. They had the following expenses:

• Richard – $1,500
• Pauline – $1,000
• Jen (their 16-year-old daughter) – $1,800
• Rob (their 19-year-old son) – $1,000

Total medical expenses = $5,300

Since Jen is under 18, Richard and Pauline can combine her medical expenses with theirs, for a total of $4,300. Either Richard or Pauline can claim this amount on line 33099 of their tax return (Step 5 – Federal tax). Since Rob is over 18, his medical expenses should be claimed on line 33199.

Pauline’s net income (on line 23600 of her return) is $32,000. She calculates 3% of that amount, which is $960. Because the result is less than $2,635, she subtracts $960 from $4,300. The difference is $3,340, which is the amount she could claim on her tax return.

Richard’s net income is $48,000. He calculates 3% of that amount, which is $1,440. Because the result is less than $2,635, he subtracts $1,440 from $4,300. The difference is $2,860, which is the amount he could claim on his tax return.

In this case, it is better for Pauline to claim all the expenses for Richard, herself, and their daughter Jen on line 33099.

To decide who should claim the medical expenses for Rob on line 33199, Richard and Pauline will have to make the same calculation using Rob’s net income.

Do not send any documents with your tax return. Keep them in case the Canada Revenue Agency (CRA) asks to see them later.

• Receipts – Receipts must show the name of the company or individual to whom the expense was paid.  
• Prescription – The List of common medical expenses  indicates if you need a prescription to support your claim. A medical practitioner  can provide the prescription.  
• Certification in writing – The List of common medical expenses  indicates if you need a certification in writing to support your claim. A medical practitioner  can provide the certification.  
• Form T2201, Disability Tax Credit Certificate – The List of common medical expenses  indicates if you need to have this form approved by the CRA for your claim. For more information about this approval process, see Disability Tax Credit . If the person for whom you are claiming the medical expense is already approved for the disability tax credit for 2023, you do not need to send a new Form T2201.

Claiming medical expenses for a person who died

A claim can be made for expenses paid in any 24-month period that includes the date of death. It only applies if the expenses were not claimed for any other year.

Disability supports deduction (line 21500)

If you have an impairment in physical or mental functions, you may be able to claim some  medical expenses as a disability supports deduction. You can claim these expenses on line 21500 or line 33099. You can also split the claim between these two lines, as long as the total of the amounts claimed is not more than the total expenses paid. You may claim whichever is better for you. For more information, go to Line 21500 – Disability supports deduction .

Refundable medical expense supplement (line 45200)

The refundable medical expense supplement is a refundable tax credit available to working individuals with low incomes and high medical expenses. For more information, go to Line 45200 – Refundable medical expense supplement .

There may be special considerations when claiming amounts on lines 33099 and 33199 for someone who died .

Forms and publications

• Get a T1 Income tax package
• Guide RC4065, Medical Expenses
• Income Tax Folio S1-F1-C1, Medical Expense Tax Credit
• Form T2201, Disability Tax Credit Certificate
• Guide RC4064, Disability-Related Information

Related links

• Tax credits and deductions for persons with disabilities
• Line 21500 – Disability supports deduction
• Disability Tax Credit (DTC)
• Line 45200 – Refundable medical expense supplement

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MileIQ Inc.

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What Is a Medical Mileage Deduction and How to Claim It?

Medical mileage deduction is a form of financial relief for taxpayers who travel for various medical purposes. Mileage-based tax deductions can be claimed for various types of doctor visits, medical procedures, therapy, and even trips to pharmacies. 

The medical mileage rate set for 2024 is 21 cents per mile. You may be eligible for a considerable tax deduction if you frequently travel for medical reasons. 

The Internal Revenue Service has a set of guidelines to determine what is considered medical travel. If you want to claim this deduction. The key requirement is tracking and recording mileage for each trip, including its purpose.

What is a medical mileage deduction?

Medical mileage deduction is a tax relief method set by the Internal Revenue Service to make necessary medical travel less financially impactful for those in need and their families. It’s based on the standard mileage rates set by the IRS annually, along with mileage rates for business, charitable, and moving-related travel. 

Tax deductions for medical travel can significantly help your budget, especially if you travel long distances for doctor’s appointments and hospital visits. However, if you’re in that unfortunate position, you must follow crucial IRS guidelines to get your tax deduction fair and square. 

Eligibility criteria for medical mileage deduction

The general rule for claiming tax deductions for any medical expenses is that their total must surpass 7.5% of your adjusted gross income. Mileage is also included in that rule. It’s a quite significant threshold that makes a significant percentage of people ineligible. The idea behind that is to ensure that only those most financially affected by health issues can claim tax deductions. 

There’s also a set of regulations for the exact types of travel that qualify for deduction. According to the IRS, you can only count trips for appointments and procedures related to necessary medical care, including physical and mental health. 

It means you can safely count the miles for all doctor visits and appointments related to diagnostics and treatment of a specific physical or mental condition. You can also include trips to the pharmacy, but only to purchase prescribed medicine. And lastly, you can claim medical mileage deduction for trips concluded as a parent or a caregiver. 

You can’t claim mileage tax deductions on trips that can’t be considered necessary or aren’t linked to any medical condition. It may include appointments and procedures related to aesthetic medicine and trips to the pharmacy for non-prescribed medication.

Calculation your medical mileage deduction

The medical mileage rate for 2024 is 21 cents per mile. 

Using this rate, you can easily calculate your tax deduction and fill your tax return with an appropriate number. Here’s a simple formula to calculate medical mileage deduction:

Number of eligible miles driven * medical mileage rate ($0.21 in 2024) = tax deduction

For example, let’s say you’ve recorded 500 miles during all your medically purposed trips throughout the year. In that case, you may be eligible for a $105 deduction, as shown in the equation below. 

500 * $0.21 = $105

However, bear in mind that you will only be eligible for tax deduction if your total medical expenses (treatments, therapy, equipment, insurance premiums, etc.), including mileage, are higher than 7.5% of your adjusted gross income. 

In addition to that, remember that the IRS updates standard mileage rates every year, so make sure you’re using the correct rate in your calculations. Using incorrect rates or missing crucial documentation may even lead to an IRS audit. In the best-case scenario, you may receive a smaller tax deduction than you’re entitled to. 

As you can see, understanding and accurately calculating medical mileage deduction can significantly impact your tax savings. Staying up to date with the current rates and keeping precise mileage records can help you save quite a lot of money.  The IRS offers a standard deduction amount that automatically reduces your taxable income. In some cases, the standard deduction might be higher than the total itemized deductions you could claim, including medical mileage. It's important to compare the standard deduction to your total itemized deductions (including medical mileage) to see which option gives you a bigger tax benefit.

Documentation and recordkeeping

Accurate documentation and recordkeeping are necessary if you’re considering claiming a tax deduction for medical mileage. The IRS will require you to provide and keep the documents that prove the distance and purpose of your trip. 

A couple of decades ago, physical mileage logs were quite common. Now, you can use a simple spreadsheet or a dedicated app like MileIQ that does most of the work for you. Whichever method you choose, the crucial pieces of information to keep track of are:

• Date of each trip.
• Purpose (therapy, procedure, pharmacy visit).
• The actual mileage (including each trip's starting and ending point).
• Proof of medical necessity (doctor’s referral, prescription, test results)
• Any other documentation that confirms the medical purpose of a trip. 

Thorough recordkeeping will help you maximize your tax deduction but can also keep you safe in case of an IRS audit. And while we’re on that, it’s also worth noting that you should keep all relevant documentation for up to five years, according to the IRS guidelines.

Download MileIQ to start tracking your drives

Automatic, accurate mileage reports.

How to claim a medical mileage deduction

Assuming you’ve diligently documented all your medical trips throughout the year and calculated the deduction using the current rate, you should be ready to claim the deduction on your tax return. Fill in your medical expenses on line 1 of Schedule A . 

As you’ll see, the line refers to all medical and dental expenses, so you should add calculated mileage to all the other medically motivated purchases. According to a very extensive list provided by the IRS, you can include expenses such as:

• prescription medicine
• insurance premiums
• wheelchair ramps, elevators, railings, and other home improvements related to disability
• car modifications related to disability
• medical equipment (hearing aid, crutches, contact lenses, and much more)
• guide dog and Braille books (if their cost is higher than regular editions)

The full list is available on the IRS website . 

Remember to itemize your deductions and list them individually on Schedule A to claim the standard mileage deduction.

Claiming the medical mileage deduction can be complicated, especially if you’re doing it for the first time. However, with a clear understanding of the process and accurate recordkeeping, you can successfully claim this deduction and potentially save a significant amount on your taxes.

Common mistakes to avoid

It’s always nice to get a substantial tax deduction. But there are mistakes to be made that can give you a headache caused by an IRS audit instead. 

Perhaps the most common mistake is including costs or trips that the IRS doesn’t consider deductible. So, if you have any doubts about something, check the list of qualifying expenses. You should also verify that all the trips you’ve included actually had medical purposes. 

Another frequent reason for the IRS audit is missing documentation. If you’ve misplaced a parking slip or a crucial receipt and can’t get a copy, it’s better to omit that cost from your calculations. 

Regardless of the type of error, remember that the IRS can and will ask for proof, so it’s best to double-check everything before submitting a tax return. 

And finally, remember that mileage rates are changed annually. If you’ve written down a calculation formula somewhere last year, you probably shouldn’t use it this time. Over the last 10 years, we haven’t had a situation where medical mileage rates remained unchanged year to year.

Medical rates over the years

The IRS adjusts the standard medical mileage rates to reflect the changing economic conditions. This includes factors like:

• fuel expenses
• vehicle upkeep
• vehicle depreciation

Before calculating your medical mileage, always refer to the current mileage rates. Traditionally, the IRS announces new rates for the year in the middle of December. However, a few times in the last decades, the rates had been updated twice over the course of a year to reflect rapidly changing economic conditions. The most notable example in recent years was the change in 2022 due to the Covid-19 pandemic. 

Medical mileage rates 2023

The medical mileage rate for 2023 was 22 cents per mile. The rate remained consistent with the previous year, which is quite rare. 

Medical mileage rates 2022

The standard medical mileage rate for 2022 was initially 18 cents per mile and then increased to 22 cents per mile from July 1st.  

This significant change was motivated by the global economic conditions caused by the pandemic, particularly by a significant increase in gasoline prices. 

Medical mileage rates 2021

With just 16 cents per mile in 2021, the IRS set the lowest rate for medical travel in the last two decades. The change was motivated by dropping gas prices and economic stability in the previous years. 

Medical mileage rates 2020

The medical mileage rate for 2020 was set at 17 cents per mile. The rate was lower than the rate of the previous year.

Charitable Mileage Deduction

In addition to medical and business mileage, you can also claim charitable mileage deductions for travels related to charitable activities. 

The standard mileage rate for charitable travel is 14 cents per mile, which has remained unchanged for decades. Similar to the medical mileage deduction, it requires maintaining sufficient and complete records to prove charitable activity. However, there are certain differences in what qualifies as deductible mileage.

Tracking mileage as a way to preserve health and wealth

If you find yourself driving long distances for medical reasons, tracking medical mileage can significantly help your budget. We hope this article helped you better understand how to track and claim deductions on your tax return.

As long as you keep your documentation organized and use the correct mileage rate for the year, you should be good to go. 

Can you write off travel expenses for medical purposes?

Yes, you can write off travel expenses for medical purposes, including transportation costs to reach a medical treatment facility and deducting mileage for travel to doctor's offices, pharmacies, and therapy sessions, as well as parking fees and tolls. However, keeping detailed records of these expenses for tax purposes is important.

Still tracking miles by hand?

Check out more mileage guides.

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Eligibility of Mobility-Related Expenses to the Medical Expense Tax Credit

The medical expense tax credit provides tax relief for individuals who have sustained significant medical expenses for themselves or certain of their dependants. The medical expense tax credit is a non-refundable tax credit that is applied to reduce the taxes of an individual. As a non-refundable credit, it can reduce your taxes to zero. If your medical expenses are high in relation to your income, you may also qualify for a partial refund.

Many different expenses qualify for the credit. For patients who have severe mobility impairments, there are many expenses that might not be generally considered as medical that are nonetheless eligible for the medical expense tax credit.

Expenses Related to Transportation

The first broad category of expenses are those that relate to transportation.

If, as a person with limited mobility, you need to modify your driveway to make access to your vehicle easier, reasonable expenses relating to the modifications are eligible as a medical expense.

Also eligible is a portion of the amount paid to acquire or modify a vehicle for use in transporting a patient who requires the use of a wheelchair.

An amount paid to transport a patient by ambulance to or from a public or licensed private hospital is an eligible medical expense. In the same way, if you need to hire a professional transportation service, this will be an eligible medical expense under the following circumstances:

• The patient travels to a place that is at least 40 kilometres away from the locality where he usually lives;
• Substantially equivalent medical services are unavailable within the patient’s locality;
• The patient takes a reasonably direct travel route having regard to the circumstances; and
• It is reasonable, in the circumstances, for the patient to travel to that place for the medical services.

Expenses Related to Housing

Taxpayers with severe impairments often have special housing needs. There are many expenses relating to adapting their housing situations that qualify as eligible expenses.

Expenses relating to renovations or alterations to the taxpayer’s home or costs related to the construction of a new principal place of residence for the taxpayer are such an example. To claim these as eligible medical expenses, the following conditions must be met:

• The expenses were paid to enable the patient to gain access to his house or be mobile or functional within it;
• The expenses would not typically be expected to increase the value of the home;
• The expenses would not normally be incurred by persons who have normal physical development or who do not have severe and prolonged mobility impairment.

Items that are typically Included in this category are the purchase and installation of outdoor or indoor ramps where stairways impede the patient’s mobility, the enlarging of halls and doorways to allow the patient access to the various rooms of the home, and the lowering of kitchen or bathroom cabinets to allow the patient to be more functional in his home.

References & Resources

• CRA “S1-F1-C1, Medical Expense Tax Credit”

Related articles

How to deduct your medical expenses, tax tip: claiming the medical expenses tax credit for immediate family and other dependants, which dental expenses are considered deductible medical expenses when filing income taxes.

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Medical Expenses and Taxes – What Can You Claim?

January 2024

You may claim a tax credit for medical expenses when preparing your income tax return. How much is it worth to you? What qualifies as a medical expense? In my 45 years of doing tax returns, I consider the medical expense credit as the most common tax credit under-claimed by taxpayers, especially the mileage claims, out-of-province travel insurance premiums and assisted living costs for infirm residents.  Although this article is quite complex, we hope it is easier to read than the Canada Revenue Agency  Income Tax Folio – S1-F1-C1 available to you free from the Canada Revenue Agency  (CRA).  I also recommend their publication RC4065, Medical Expenses .  See the CRA Folio index for other medical and disability information.  If you pay someone to do your tax return based on time, read this article on how to Organize your Medical Receipts to save them time in trying to figure out all of your receipts.

If you have missed claims in past years, you are allowed to amend prior year returns for up to 10 calendar years after the error or omission.

First of all, you can only claim medical expenses after they exceed a certain amount. This threshold amount for the federal part of your tax return (Schedule 1) is either 3% of your net income as reported on your tax return, or $2,635 in 2023 ($2,759 in 2024), whichever is lower. For example, if your net income on your tax return is $40,000, you can deduct expenses in excess of $1,200. If your income is over $87,833 in 2023, you can claim any amount over $2,635. Provincial thresholds vary.  For example, for P.E.I. residents, the 3% formula is the same, but there is a different threshold.  For many years, the threshold has been $1,678 for P.E.I., which means that if your income is over $55,933, you can claim any amount over $1,678.  If you are preparing your tax return and you do not qualify to claim expenses on a federal basis because the amount is too low, remember to look at the provincial form also.

The medical expense is deductible based on when it was paid , not when the service was performed. If you pay a bill late, or by instalments (such as many parents do for large dental bills), your tax savings may be reduced. Your tax savings for medical expenses will be the amount of medical claim multiplied by the lowest federal rate of 15%, plus your provincial tax rate.  This will be approximately 20% to 25% of your qualifying expenses. For example, in P.E.I., if you pay $2,000 of medical costs, but the first $1,200 are not deductible, then the $800 that you can claim will save you tax of about $200 (15% + 9.8% = 24.8% of $800).  For certain low income taxpayers, the medical claim may result in a refundable tax credit, meaning that a tax refund is issued even if you have no taxes payable.   You may claim medical costs for you, your spouse or common-law partner or a dependent relative, which may include a child, grandchild, parent, grandparent, brother, sister, uncle, aunt, niece or nephew. I discuss dependants further below.

Note that medical costs for cosmetic procedures will not qualify unless required for reconstructive purposes. These non-qualifying costs include teeth whitening, hair replacement, liposuction and botulinum injections. Other costs that do not qualify include over-the-counter medications, non-prescription birth control devices, vitamins and supplements, health foods, emergency personal response systems and blood pressure monitors. Common expenses that qualify as medical expenses are listed below. In some cases, you need a prescription, and in other cases, you do not.  When in doubt, contact the Canada Revenue Agency for clarification, or visit the Canada Revenue Agency Web page discussing medical cost s. Also, to help you organize your receipts, see my article titled Organize your Medical Receipts – Reduce Your Tax Preparation Fee .

• Payments for prescriptions , minus any amounts refunded by a health insurance plan;
• Premiums paid to a health insurance plan – whether paid privately or deducted from your wages.  Do not include life or disability premiums, only the medical, dental and vision;
• Premiums paid for travel health insurance , such as out of country coverage;
• Payments for vision care, such as checkups, eye glasses, contact lenses or eye surgery;
• Payments for hearing aids , as well as hearing aid batteries (no prescription required);
• Payments for dental work, including checkups, cleaning, surgery and other procedures;
• Payments to qualified medical professionals . A publication by the Canada Revenue Agency ( Income Tax Folio – S1-F1-C1 ) provides a sample list of professionals. Do not rely on this list because, as their publication states, the correct definition depends on “the laws of the jurisdiction”. Go to the CRA web site listing of authorized medical practitioner s by province or territory for a list of qualified medical professionals for each province. For example, in some provinces, fees paid to a podiatrist, a massage therapist or a naturopathic doctor will not qualify.  However, these can change at anytime, so check annually.
• Payment for attendant care for a patient who has a severe and prolonged mental or physical impairment.  Depending on your situation, you will need either a doctor’s letter or a Disability Tax Credit Certificate.  See the CRA publication, RC4064, Disability-Related Information .  Generally speaking, if a person qualifies for the disability credit, then you can claim either the disability credit or the attendant care fees for full-time  care in the person’s home or for a nursing home , but not both. Note that the Income Tax Act, in paragraph 118.2(2)(b) and (c) says “remuneration for one full-time attendant”, but that phrase also includes multiple people providing care, not just one round-the-clock person.  CRA folio S1-F1-C1 , starting at paragraph 1.31, provides more detail than I provide here. In addition, CRA states online in their description of tax return lines 33099 and 33199 for attendant care , “We consider care to be full-time when a person needs constant care and attendance.” A retirement residence, community care home or assisted living facility is not a nursing home.  All costs for a nursing home can be claimed, if applicable, but for people living elsewhere, only salary and wages paid for attendant care will qualify.  There are exceptions to this “either/or” rule.  If you are living at home or in a retirement home, then ITA paragraph 118.2(2)(b.1) in combination with ITA subsection 118.3(c) comes into play.  You can claim the disability credit and the attendant care fees where you claim only salaries and wages for the attendant, and claim no more than $10,000 of these salaries and wages ($20,000 in year of death).  If you pay wages, for example, of $15,000, you can choose to claim only the attendant care, only the disability credit, or $10,000 of wages plus the disability credit. For care paid directly, such as in your own home, you would know these figures.  Where you are claiming attendant care for an assisted living facility, that facility would need to provide you with a breakdown of their fees to allow you to determine the eligible amounts.  I have a more extensive discussion of these rules an my article titled   Caregivers of Parents and Tax Deductible Expenses .  While that article relates to caregivers, the medical descriptions are applicable to you or other dependants.  See the heading, “Attendant care and nursing home costs are medical expenses” in that article.    Finally, patients being cared for in a group home or at a training school may claim both the disability credit and attendant care expenses, if they qualify for both. See  RC4065, Medical Expenses  for details and examples about this complex deduction.
• Payment for the cost of full-time care in a nursing home for a patient who has a severe and prolonged mental or physical impairment. To qualify as a nursing home, there must be appropriately qualified medical personnel in attendance in sufficient numbers on a 24-hour basis. Receipts from the nursing home and a certificate from a medical practitioner (a medical doctor or a nurse practitioner) are required to support a claim for an expenditure of this nature. A letter is sufficient from a  medical practitioner when a patient’s mental capacity is the only issue.  Otherwise, a  Form T2201 , Disability Tax Credit Certificate is required, i.e. for mental or physical incapacity.  See the CRA publication, RC4065, Disability-Related Information.   Costs for a community care facility may qualify as a payment for a “full-time attendant” if the institution will not qualify as a nursing home.  Also, see my article on Caregivers of Parents and Tax Deductible Expenses  for more information.
• Travel to a location that is at least 40 kilometers away in order for the patient to receive medical services. This includes travel expenses for one individual to accompany the patient as long as the patient has been certified by a medical practitioner as being incapable of travelling without an attendant. See more details on qualifying travel expenses below.
• Cost of purchase or rental of medical appliances , such as crutches, hearing aids and hearing aid batteries, wheelchairs, artificial limbs, products required because of incontinence, ileostomy or colostomy pads including pouches and adhesives used for the same purpose, compression stockings, etc.  Medical prescriptions may be required for some of these items, but not all of them.  See the CRA Guide RC4065, Medical Expense to determine which items need prescriptions.
• Under certain circumstances, the cost of house renovations , chair lifts, moving costs, special vehicles, etc. for individuals with mental or physical disabilities.  Again, I refer you to my article on Caregivers of Parents and Tax Deductible Expenses for a description.

A special “ disability supports deduction ” also exists for attendant care and long-term disabilities that differ from the medical expense credit, which should be investigated if the circumstances warrant it. This credit is available for personal attendant care and other disability supports expenses that allowed you to go to school or to earn certain income.  See the CRA publication, RC4065, Disability-Related Information .

Travel Costs for Medical Purposes

Patients must often travel to obtain their required services, and special rules relate to travel expenses that can be claimed. First, the travel must be at least 40 kilometers. Then, in order to qualify, equivalent medical services must be unavailable within the patient’s locality. Travel costs must be paid to a person engaged in the business of providing transportation services if one is readily available; otherwise, reasonable expenses incurred for operating a vehicle are accepted. A “per kilometer” amount may be claimed for actual automobile expenses based on a prescribed rate set annually by the government. For PEI, in calendar year 2023, it is 56.0 cents per kilometer; such rates are announced in mid to late January of the following year.  See the CRA web site for current prescribed rates .

For travel at least 80 kilometers away, other reasonable travel expenses may be claimed such as meals and accommodation for a patient and, where certified medically necessary by the doctor, for an accompanying individual. Receipts must be retained for accommodations, but a flat rate may be claimed for meals. This flat rate for 2023 is $23.00 per meal to a maximum of $69.00 per day.  For many years prior to 2020, it was $17.00 per meal, to a maximum of $51.00 per day.  This information is also available on the web site for current prescribed rates .   Amounts paid for lodging must be necessary because of the distance travelled, or because of the condition of the patient, and not solely for the sake of convenience.

Claims for Dependants

Who is a dependant? Based on Canada Revenue Agency published interpretations:

Generally, a person will be dependent for support on an individual if the individual has actually supplied necessary maintenance or the necessities of life, to the person on a regular and consistent basis. For example, when an elderly parent who is not wholly self-supporting because of mental or physical infirmity lives with a married child, and the child provides the necessary food, lodging, clothing, medical care, etc., the parent may qualify as a dependant of that child. In general terms, support involves the provision of the basic necessities of life such as food, shelter, and clothing. A person may be confined to a hospital for all or substantially all of the year because of mental or physical infirmity and the cost of hospitalization is paid by a provincial government. The latter fact, in itself, does not necessarily mean that the person was not supported by an individual. If expenses such as clothing, comforts, and medical premiums were paid by the individual (e.g. child) on those occasions when the dependant (e.g. parent) was able to be out of hospital, then, ordinarily, it is recognized that the individual supported that person.  

In Technical Interpretation 2010-0381211I7, CRA clarifies that support must deal with provision of the basic necessities of life such as food, shelter and clothing, and can be financial or non-financial.  They state, “financial support” would involve money to acquire the basic necessities and the term “non-financial support” would refer to directly providing such things as shelter, clothing and food.  The nature and degree of the actions or contributions in each case will determine whether they constitute “support” of another person. However, they state that support does not include “visiting the dependent each day, providing moral support, preparing a meal and doing the person’s laundry and/or shopping.”

What can be claimed? First, medical costs for minor children are combined with those of the parents. For other dependants, you must know that dependant’s net income. You may claim expenses that exceed 3% of that dependant’s income (or above the limits as set earlier) on your tax return.  If your dependant qualifies for the disability tax credit and does not need that credit to eliminate their own income taxes, the unused portion of the credit can be transferred to you for use.

Claim Period

You may claim medical expenses on your tax return for any 12-month period ending in that year. Most people use the calendar year, but that is not necessary. For example, for 2023, if you wanted to do so, you could claim expenses paid from January 2, 2022 to January 1, 2023, which is 12 months. On the other hand, you could claim July 1, 2022 to June 30, 2023, or any other combination of 12 months. Look for the time frame with the biggest expenses, but also consider your expectations for the following year.  If you claim only part of the expenses on a particular day because you have eliminated all of your taxes, you can include that particular day again next year, as long as you never exceed a 12-month period and do not claim the same expense twice.  This sometimes happens when claiming nursing home costs, which are large expenses paid on a particular day.   If you missed some expenses in a prior year, you have up to ten years to ask for a correction.

Of course, I wish you and your family the best of health so you never have a deduction.  If this article was useful to you, or if you have suggestions, a brief email to me from my contact page would be helpful to know whether I should continue publishing it.

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Blair Corkum, CPA, CA, R.F.P., CFP, CFDS, CLU, CHS holds his Chartered Professional Accountant, Chartered Accountant, Registered Financial Planner, Chartered Financial Divorce Specialist as well as several other financial planning related designations. Blair offers hourly based fee-only personal financial planning, holds no investment or insurance licenses, and receives no commissions or referral fees. This publication should not be construed as legal or investment advice. It is neither a definitive analysis of the law nor a substitute for professional advice which you should obtain before acting on information in this article. Information may change as a result of legislation or regulations issued after this article was written.©Blair Corkum

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Canadian Income Tax

Travel costs claimed as medical expense tax credit, by edelkoort smethurst cpas llp.

In an effort to assist Canadian residents who have to travel for medical care the Government allows the costs of travel to be claimed as a medical expense tax credit on personal tax returns.

In order to claim travel CRA medical expenses the following three conditions must all be met:

• Equivalent medical service is not available near your home hence the requirement to travel to receive medical care
• A reasonable travel route was taken to receive medical support
• It is considered reasonable to travel to a place for the medical support received

If a doctor/medical practitioner confirms you are unable to travel alone to receive the necessary medical care, the travel costs of an attendant may also be claimed as per the conditions outlined.

Travel Radius

In order to claim travel costs as a medical expense, taxpayers must travel at least 40 kilometers for purposes of seeking medical support.

• When traveling 40 kilometers or more, public transportation expenses such as fare of taxis, buses, or trains can be claimed.  If public transportation is not readily available, vehicle expenses can be claimed.
• When traveling 80 kilometers or more, because it is likely you need temporary accommodations while receiving the medical care, accommodation expenses can be claimed, along with any parking and meal expenses in addition to vehicle expenses.

Claiming Public Transportation (Travel Distance of 40 km or more)

Public Transportation can vary from the cost paid to travel by taxi, bus, train, or air travel to reach a destination where medical services are provided.

Claiming Meal and Vehicle Expenses

Meal and Vehicle Expenses can be claimed using the simplified or detailed method as described below.  All expenditures claimed using the detailed method require supporting documentation in the event the CRA decides to review the claim.

Meals expenses claimed using the simplified method are calculated using at a flat rate of $17 per meal to a maximum of $51 per day (assumes three meals a day).  The detailed method claims the actual amount spent on all meals during the time spent traveling for the medical care.

Vehicle Expenses similarly can be claimed using the simplified method which is to apply a per km rate to the number of kilometers travelled from home to the place of medical service.   The per km rates are published by the CRA here and the applicable rate is based on the province in which a taxpayer departs from.

The detailed method is more complicated.  First, a taxpayer must document not only their travel for medical purposes but also the total kilometers driven during the tax year.  The taxpayer must also report the total of all vehicles related costs (fuel, license fees, insurance, repairs, etc.) in order to calculate the medical travel portion based on the kilometers tracked.  Due to the level of record keeping required, we typically advise our clients to use the simplified method.  While a log of kilometers driven for medical support must be maintained using the simplified method, it need only list the departure and destination along with the date of travel.

If you have any questions about claiming travel costs as a CRA medical expense please feel free to contact our firm for additional information to gain a better insight on your tax situation.

Blog post authored by Andrew Bidulka

Making a Claim for Medical Expense Travel Credits in Canada

by dellendo | Income Tax Return Preparation

Making a Claim for Medical Expense Travel Credits

Taxpayers can use the medical expense tax credit to offset taxes paid or owed. If you paid for healthcare, you may be allowed to deduct them from your taxes and benefits.

• Details of medical expenses

Medical Expense Tax Credit 

• Eligible medical expenses

CRA Medical Expenses in Canada

Canada is the world second largest country. In addition to its immense size, some of the country’s most attractive places to reside are found in rural communities. Traveling long distances for medical care is a hassle, and it’s an issue if you live outside of a big city. If you have to travel for your treatment, you may be able to claim travel expenses on your tax return according to the Canadian government.

A range of costs incurred when traveling for medical treatment, as well as those incurred on behalf of your spouse or family, may be eligible for tax deductions. All reimbursements will cover travel, food, and housing costs for the patient and an escort, if needed. To help with tax season, let’s consider the allowable deductions and how to claim them.

How far must I travel to qualify for Medical Expense Travel Credits?

It is likely that you have spent a lot of money on parking at a hospital in the past, so be prepared for that expense. When traveling for medical treatment, parking charges are not deductible unless you travel more than 80 kilometers.

When submitting a claim to the CRA for transportation and travel expenses, it is necessary to meet the following requirements:

• In your neighborhood there were no comparable medical services.
• You avoided detours and followed the shortest route.
• It was appropriate for you to go to the place you did in order under the circumstances to acquire such medical care.

If you take public transportation to travel more than 40 kilometers (one way) for medical treatment, you may be entitled to claim the costs (eg. bus, train, or taxi fare). Even if you don’t use public transportation, you may be able to deduct the cost of your car.

If you traveled more than 80 kilometers (one way), you can deduct your automobile expenses, as well as your housing, meals, and parking fees, from your tax return.

If a medical professional has determined that you cannot travel without assistance, you may be able to claim reimbursement for expenses incurred by someone who traveled with you as a caretaker.

How does the CRA calculate vehicle costs?

If you need to drive to get medical attention, you can claim expenses such as gasoline, oil, license fees, insurance, maintenance and repair costs, and replacement parts on your tax return. Depreciation, provincial taxes, and loan charges are all considered tax-deductible expenses in the United States.

There are two techniques to determining automobile expenses: the complete methodology and the streamlined method. The comprehensive technique is the more thorough approach. If you select the detailed option, you will be required to keep track of the total amount of kilometers driven over a 12-month period. Assess the relationship between the overall cost of your vehicle and the number of kilometers travelled for medical treatment.

You can deduct half the cost of your car on your tax return, for example, if you drive 10,000 kilometers in a year, with 5,000 kilometers of those being for medical treatment (which was more than 40 kilometers away).

You may easily calculate how many miles you traveled throughout the 12-month period in which you choose to seek medical attention by following this straightforward procedure. Calculate the distance traveled by multiplying the distance traveled by the provincial rate that is in effect. Tariffs vary by province or territory and are subject to change on a yearly basis. The document is available on the website of the Canada Revenue Agency.

Keep all of your receipts for future Canada Revenue Agency inspection applications, regardless of whether you choose a detailed or a simple approach (CRA).

What are the Accommodations Policies?

• To be eligible for payment for housing and food you must have covered more than 80 km for medical care.
• Receipts are based on accommodation claims and only stay costs, including taxes, are reimbursable. No additional price is included for items like room service, movies and telephone calls.

What is the process for claiming meals?

• You must have gone more than 80 kilometers to be eligible for food refunds from CRA. You have the possibility, as well as with car costs, to choose the detailed manner or the simplified method.
• You must keep track of the actual cost of each meal with the detailed way.
• You can deduct up to $17 for each meal up to $51 a day including sales tax and up to a maximum of $17 per meal for people who choose for the simpler option.
• Keep in mind whether you employ the detailed technique or the simplified method always to save receipts.

Travel Partners / Companions

You may be entitled to deduct the expenses of your spouse or common-law partner, as well as any other person who travels with you, as part of the tax credit for medical expenses if they accompany you on your journey. To include these charges, your doctor or other authorized practitioner must present you with a certificate showing that you were unable to travel alone at the time the incident happened.

When you meet certain qualifications, you may be able to cover the costs of transportation, lodging, and meals for your travel companion, depending on how far you traveled for medical care.

Travel outside of Canada’s borders

In addition to being able to claim expenditures incurred while out of the country, qualified medical expenses for traveling within Canada may also be reimbursed. Every single one of the following requirements must be met:

• Practitioners must have the legal right to practice in the country where they work. When it comes to hospitalizations, the institution must be either public or privately licensed private.
• The program requires that the health-care services you receive be unavailable in your neighborhood and that you travel to seek them.

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The CRA sets a standard mileage rate each year, which is used to calculate your mileage reimbursement. You can also choose to enter a custom rate in the calculator.

Mileage rates for each Canadian province

As shown in the table above, there is a small addition per kilometre in the three territories. Apart from that, there are no diversified mileage rates for the 10 provinces.

This means that you can use the CRA rates in the mileage calculator for BC, Ontario, Alberta, etc.

If you would like to calculate your mileage reimbursement manually, you can do so by following the example below:

Let’s say that by June 2023 your logbook shows a total of 6,000 km for business purposes.

All you need to do is multiply the 6,000 km by the mileage rate. However, you need to remember that the first 5000 km and the km after that are reimbursed at different mileage rates. Up to 5000 km, the CRA mileage rate for 2023 is 68¢ and after 5000km it is 62¢. Therefore you would calculate your reimbursement like this:

• 5000 (first 5000 km) x 0.68 = $3400 (Your reimbursement for the first 5000 km)
• 1000 (Remaining km) x 0.62 = $620 (Your reimbursement for the km after the first 5000) 
• Now combine the two to get the total mileage reimbursement: 
• 3400 + 620= $4020 (total reimbursement)

If you have logged all the required information in your mileage logbook, there should be no reason for you not to get reimbursed. You can use the Driversnote mileage tracking app to make sure you never miss logging a trip and quickly generate compliant mileage reports.

In order to receive the calculated mileage reimbursement, you must be able to prove that you have driven kilometres for business purposes. To do so, you must keep a mileage logbook where you record your driven kilometres. Learn more about keeping a CRA-compliant logbook . Simply using the calculator to estimate your reimbursement is not enough for you to be paid out.

By keeping track of your mileage in a logbook, whether it's an Excel sheet, a PDF, a physical notebook or an app, you can determine your work-related car expense deductions.

Remember that when keeping a mileage logbook you need to log both business and personal trips. That is because you will need to be able to show the exact percentage of your vehicle used for business purposes. The CRA requires you to keep your records for six years from when you turn in your tax return, in case they need you to substantiate your claims.

Worried you may forget to log all your trips? A mileage tracker is the easiest ways to make sure you never forget. Driversnote offers automatic tracking for free and can help you never miss a trip again.

How to automate your mileage logbook

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Automate your logbook

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CRA Mileage Rate 2024

The CRA announces 2024 rates for vehicle allowance: From January 1st, 2024, per kilometre rates will increase 2 cents over 2023.

High-end vehicles are subject to luxury tax when they are imported, sold, leased etc. Learn how to calculate it in different scenarios.

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2023 CRA Per-Kilometre Rate

The 2023 CRA per kilometre rates are set at $0.68/km for the first 5,000 kilometres driven in a year, and $0.62/km after that.

Update: 2024 CRA per kilometre rate is here!

Introduction, what is the cra mileage rate in 2023, mileage reimbursement rates in the northwest territories, the yukon, and nunavut, business owners need to know about cra rules for reimbursing vehicle expenses, historical mileage rates in canada, follow us on linkedin.

The 2024 CRA mileage rate has been announced. To see the new rate, check out this blog post:

Canada 2024 Mileage Rates, Automobile Deduction Limits

The CRA per-kilometre rate is the rate paid per kilometre driven for work related expenses. The 2023 CRA per kilometre rates are set at $0.68/km for the first 5,000 kilometres driven in a year, and $0.62/km after that. This reimbursement rate covers things like gas, vehicle maintenance, and insurance.  The CRA per kilometre rate is a mileage reimbursement rate .

If you’re a Canadian who drives for work or a business owner in Canada, it’s important to know what the CRA per kilometre rates are so that you can plan accordingly. Keep reading to learn more about the 2023 CRA per kilometre rates and how they may affect you!

The Canadian Revenue Agency (CRA) Mileage Rate for the year 2023 has been set at 68 cents per kilometre for business travel, with a 4-cents-per-kilometre rate for charitable and medical purposes. It is important to keep these rates in mind when claiming expenses related to operating a vehicle such as fuel and repairs, as it can be used against income sourced from employment or business activities. Additionally, it is necessary to maintain records that indicate the date of each trip, the purpose of the trip, and the kilometres travelled so that any claims are verified upon audit.

“The limit on the deduction of tax-exempt allowances paid by employers to employees who use their personal vehicle for business purposes in the provinces will increase by seven cents to 68 cents per kilometre for the first 5,000 kilometres driven, and to 62 cents for each additional kilometre. For the territories, the limit will also increase by seven cents to 72 cents per kilometre for the first 5,000 kilometres driven, and to 66 cents for each additional kilometre,” per  Canada’s Department of Finance .

The rate applies from British Columbia to the Maritimes,  including Quebec , but it is different in the North. 

What is the Canada Revenue Agency?

The Canada Revenue Agency (CRA) is an independent agency and part of the Federal Government of Canada. Its mission is to help Canadians benefit from available tax and other credits and deductions, as well as to comply with administrative requirements. The CRA makes sure that everyone meets their obligations under Canadian taxation law by administering tax laws for all levels of government, enforcing payment, collecting taxes, and overseeing refunds and credits. They also administer government programs, including the Canada Pension Plan (CPP); Old Age Security (OAS), Registered Retirement Savings Plans (RRSPs); GST/HST credit; Universal Child Care Benefit; Working Income Tax Benefit; and more. By offering Canadians comprehensive services in a cost-effective manner, the CRA ensures fairness, integrity, and service excellence.

The CRA mileage rate is a reasonable per kilometre allowance and can be paid to drivers tax-free

The CRA mileage rate is an excellent option for businesses or individuals who require reimbursement for using their vehicle on the job or during work-related travel. The reimbursement rate of $0.68 per kilometre incurred can be paid without taxes. A number of requirements must be met in order to receive the CRA mileage rate; however, overall, it’s a convenient and reasonable way to invoice driving expenses without worrying about tax implications down the line.

The  requirements that you have to meet in order for a rate to be considered reasonable  are the following:

• This allowance is calculated solely based on the amount of company-related kilometres driven in a year.
• The rate per-kilometre is “reasonable,” i.e. is the same as the rate stated in section 7306 of the Income Tax Regulations
• You did not pay any other kind of allowance for the vehicle in question. If you decide on the allowance without including any reimbursements for tolls, ferry fees, and supplementary business insurance premiums then this does not apply to your situation.

For those who live and work in the Northwest Territories, Yukon, and Nunavut, mileage reimbursement rates are a critical part of their job. For the first 5000 kilometres driven in any given year they are reimbursed at 72¢ per kilometre; however, they receive 66¢ per kilometre driven after that. Understanding rate changes can help ensure that professionals living and working in these Northern territories maximise their journey claims and receive what they are rightfully entitled to.

As a business owner, complying with the CRA rules for vehicle expenses is incredibly important in safeguarding your company’s financial position. Gone are the days when mileage reimbursement was fuzzy at best; the CRA has released detailed guidelines regarding claims that business owners need to be aware of in order to stay compliant. By understanding and following these rules, businesses can ensure they are not wasting money on over-inflated expense reimbursements and audit risk is minimised. Ignoring or taking a lax approach to reimbursing vehicle expenses could put your company’s finances at risk – make sure you understand the CRA regulations before submitting any claims.

What the CRA considers business-related driving

For employees who drive for work in Canada, the Canada Revenue Agency (CRA) considers only business-related travel as eligible for reimbursement. Business owners need to be aware that they need to reimburse employees properly and should not include commuting costs in reimbursements. The amount eligible is determined by the CRA’s per kilometre rate, which factors in vehicle expenses such as fuel, repairs and insurance. It is important for employers to understand when travel is considered ‘business-related’ so employees can be reimbursed correctly.

How the CRA treats a Combination of flat-rate and reasonable per-kilometre allowances

When an individual receives flat-rate and per-kilometre allowances from his or her employer in combination, the Canada Revenue Agency (CRA) treats this as a taxable benefit. Therefore, it is up to the individual to be accountable for these amounts of money and to claim them on their tax returns. Employers must comply with the CRA regulations by deducting CPP, EI, and income tax from flat-rate and per-kilometre allowances. Individuals should ensure that the agency has been made aware of all flat-rate and per-kilometre allowances that they might have received over the course of a year in order to comply with its regulations.

You can read more about the CRA’s treatment of these allowances here.

How the CRA treats flat rate automobile allowances

The Canadian Revenue Agency (CRA) considers flat rate automobile allowances as taxable income for employees. As such, these allowances must be deducted from an employee’s paycheque by the employer, who is also required to deduct CPP, EI and income tax. To get a tax deduction when claiming these allowances, it is important that employees do the accounting themselves when filing their taxes. This way they can ensure that these amounts are properly filed and used to their own benefit when paying taxes.

Canadian automobile allowance rates  have changed significantly over the past several years. For 2023, the rate is 68¢ per kilometre for the first 5,000 kilometres driven and 62¢ per kilometre driven after that. In the Northwest Territories, Yukon, and Nunavut, there is an additional 4¢ per kilometre allowed for travel. Automobile allowance rates for earlier years may vary widely; for 2020, 2021 and 2022 are 61¢, 59¢ and 59¢ per kilometres respectively for the first 5,000 kilometres driven each year. For 2016 – 2018 these rates were 54-55 cents respectively whereas in 2015 it was 55 cents per mile for the first 5,000 kilometres driven. These differing rates are essential to consider before planning business driving in Canada.

As a business owner, it’s important to know about the CRA rules for reimbursing vehicle expenses. The mileage rate for 2023 has been set by the CRA and is a reasonable per kilometre allowance that can be paid to drivers tax-free. However, there are some exceptions in the Northwest Territories and Nunavut where the rates are different. It’s also important to note that when you drive your personal vehicle for work, this is considered a taxable benefit. You can claim driving allowances that have been taxed as a deduction on your personal income tax return. If you want to run a mileage reimbursement program today, contact Cardata. We would be happy to help you get started.

Disclaimer: nothing contained in this blog post is legal or accounting advice. Consult your lawyer or accountant and do not rely on the information contained herein for any business or personal financial or legal decision making. While we strive to be as reliable as possible, we are neither lawyers nor accountants. For several citations of IRS publications, on which we base our blog content ideas, please always consult this article: https://www.cardata.co/blog/irs-rules-for-mileage-reimbursements. For Cardata’s terms of service, go here: https://www.cardata.co/terms.

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