Massage therapy’s status as a tax-deductible medical cost differs by jurisdiction. If the spending is eligible, it is computed using the Medical Expense Tax Return (METC), which results in a tax credit that may be used to any tax owed. Massage therapy is not a tax deduction that can be claimed on your tax return. You can visit our website for more.

Massage therapy is an acceptable cost in which provinces?
In the following provinces, massage therapist services are eligible for the METC:

  • British Columbia is a province in Canada.
  • New Brunswick is a province in Canada.
  • Ontario Newfoundland and Labrador
  • Prince Edward Island is a small island off the coast of Canada

What is the Medical Expense Tax Credit (METC) and how does it work?
The Medical Expense Tax Credit (METC) is a non-refundable tax credit that you can claim on your tax return. It can be deducted from your tax payable, but it cannot increase your tax balance over 0 because it is non-refundable. You can claim this tax credit if you have medical costs that qualify under the Income Tax Act.

What is the Medical Expense Tax Credit (METC) and how does it work?
If you have medical costs that qualify under the Income Tax Act, you can claim a tax credit for the amount of those expenses that exceeds either 3% of your net income or $2,397. After that, increase the amount that exceeds the threshold by your province’s lowest marginal tax rate (10 percent in Alberta’s instance) plus federal (15 percent). This is your METC number.

METC Calculation Example:

Net Income = $100,000

Medical Expenses Eligible = $4,000

10% Equals 0.1 for the province of Alberta.

Step 1: $100,000 divided by 0.03 is $3,000

Step 2: Make a comparison between $3000 and $2,397.

Step 3: Choose the lowest number, thus A2 = $2,397.

Step 4: $4,000 minus $2,397 equals $1,603.

Step 5: METC = $1,603 * (0.1 + 0.15) = $400.75

In this situation, you have a $400.75 non-refundable Medical Expense Tax Credit.

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