Medical Cannabis & Your Taxes
Tax season is upon us! The Canada Revenue Agency (CRA) allows for medical cannabis to be claimed as a “medical expense” deduction on your federal income taxes, the same way you can claim the cost of glasses, dental work, and prescription medications. Here’s how it works.
Who Qualifies?
To claim medical cannabis, you must have a prescription/authorization from a medical doctor (MD) or nurse practitioner (NP) to purchase directly from a Health Canada licensed seller.
How to Calculate How Much You Can Claim
The Canada Revenue Agency (CRA) calculates eligibility for medical cannabis expenses based on the following considerations:
- Total medical expenses
- Less than 3% of your net income (up to a maximum of $2,180)
For example:
Let’s say your income is $50,000 annually, and your medical cannabis expenses are $2,000 annually.
0.03 (3%) x $50,000 (net income) = $1,500
Therefore, you could claim $1,500 of the $2,000 spent on your taxes.
Eligible & Claimable Items
- Cannabis flower
- Seeds
- Oils
- Ingestibles
- Health Canada approved vaporizers
If you are currently using cannabis without a prescription and would like to be assessed for medical cannabis, apply now.
