Medical Expense Tax Credit

One of the most significant tax benefits that can help offset home care costs is the Medical Expense Tax Credit (METC). This non-refundable tax credit is designed to alleviate the tax burden on those who have significant medical expenses, including certain home care costs.

To be eligible, these medical expenses must be more than 3% of the individual’s net income or a fixed amount, whichever is less. For the 2021 tax year, this fixed amount was $2,421.

Eligible medical expenses can encompass a wide range of services. For home care specifically, costs related to full-time care in a patient’s own home (including remuneration for caregivers, food and household maintenance) could potentially be included. However, there are specific requirements – for instance, the patient must be dependent on others for their personal needs and functions due to a lack of normal mental capacity.

This can make the METC quite complex, and the eligibility and extent of the tax credit can vary widely based on individual circumstances, so it’s advisable to consult with a tax expert.

Disability Tax Credit

The Disability Tax Credit (DTC) is another potential avenue for offsetting some of the costs associated with home care. The DTC is a non-refundable tax credit that helps individuals with disabilities, or those supporting them, reduce the amount of income tax they need to pay.

To be eligible for the DTC, a person must have a severe and prolonged impairment in physical or mental functions. This means that the person must have significant restrictions in their ability to perform a basic activity of daily living, or even in taking a significant amount of time to do so, and these impairments must have lasted, or be expected to last, for at least 12 months.

The application process for the DTC can be rigorous and requires a certified medical practitioner to provide information about the person’s condition. Therefore, it is crucial to understand the requirements and process fully.

The Canada Caregiver Credit

If you provide support to a dependent with an impairment in physical or mental functions, you might be eligible for the Canada Caregiver Credit (CCC). This credit also applies if the dependant is your spouse’s or common-law partner’s parent or grandparent, and they are 65 years of age or older. The CCC is a non-refundable tax credit that can help caregivers offset some of the costs associated with their role.

The amount of the CCC you can claim depends on your relationship to the person you are caring for, their net income, and whether they qualify for the disability tax credit.


While Canadian tax law provides certain avenues for deducting home care costs, these are subject to specific requirements and conditions. Understanding these nuances is essential for those looking to maximize their tax savings and effectively manage their finances while ensuring proper care for their loved ones.