Funding Guide

Home care tax deductions and credits in Ontario: what families should know

Q: Can I claim home care expenses on my Canadian tax return?

In many cases, yes. Attendant care costs - including personal support worker services - may be claimed under the federal Medical Expense Tax Credit (METC) if the person receiving care has a certified disability or medical condition. The Canada Caregiver Credit may also apply to family members providing or funding care for a dependent with an impairment. Always confirm eligibility with a tax professional, as CRA rules are specific and change over time.

Q: What is the Medical Expense Tax Credit and does it apply to PSW home care?

The Medical Expense Tax Credit (METC) is a non-refundable federal tax credit for eligible medical expenses. Attendant care expenses - including PSW services for a person with a certified physical or mental impairment - may qualify. A T2201 Disability Tax Credit Certificate is typically required to claim attendant care under the METC. A tax professional can advise on eligibility and documentation.

Q: What is the Home Accessibility Tax Credit?

The Home Accessibility Tax Credit (HATC) is a federal non-refundable tax credit for qualifying renovations that make a home safer or more accessible for an eligible individual - someone who is 65 or older, or who is eligible for the Disability Tax Credit. Eligible expenses include grab bars, ramps, walk-in bathtubs, and widened doorways. It does not apply to ongoing PSW service costs, but is useful for families modifying a home to support aging in place.

Key takeaways

Attendant care expenses - including PSW home care - may qualify for the federal Medical Expense Tax Credit (METC) in certain circumstances.
The Canada Caregiver Credit, Disability Tax Credit, and Home Accessibility Tax Credit are additional credits worth knowing.
Eligibility is specific and depends on the person's medical situation - always confirm with a tax professional before filing. This guide is an overview, not tax advice.

Author: Director, Aviora Healthcare
Reviewed by: Aviora Care Coordination Team
Last reviewed: June 2026

An overview of Canadian tax credits that may reduce the out-of-pocket cost of home care - and what documentation to keep.

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Important note: This guide provides general information only and is not tax advice. CRA rules are specific, eligibility conditions vary, and this area of tax law changes. Always consult a qualified accountant or tax professional before claiming home care expenses on a return. What follows is a plain-language overview of credits that may be relevant - a starting point for a conversation with your tax advisor.

Last reviewed: June 2026 | Reading time: 7 min

Tax credits overview

Which Canadian tax credits may apply to home care expenses in Ontario?

Several federal tax credits may reduce the after-tax cost of private home care, depending on the person's situation. The amounts involved can be meaningful for families paying out of pocket for regular PSW services. Here is a plain-language overview of the main ones.

Medical Expense Tax Credit (METC)

The Medical Expense Tax Credit is a federal non-refundable tax credit for eligible medical expenses. Attendant care expenses - including PSW and personal support services - may qualify if the person receiving care has a certified physical or mental impairment.

Key conditions:

The person must have an eligible impairment - typically confirmed by a medical certificate or T2201 form
Attendant care must be provided by someone who is not a spouse or close family member
Receipts must be kept for all claimed expenses

The METC is claimed on the T1 personal income tax return. The eligible amount is calculated after a threshold (the lesser of 3% of net income or a set dollar amount that changes annually). Claim on line 33099 for yourself or a spouse; line 33199 for other dependants. Your accountant can guide the calculation.

Canada Caregiver Credit (CCC)

The Canada Caregiver Credit is a non-refundable federal tax credit for individuals who support a spouse, common-law partner, or dependent with a physical or mental impairment. It is not a deduction for care costs directly - it is a credit based on the relationship and the dependent's impairment.

The CCC may apply if:

You support an infirm dependent - including a parent, grandparent, child, sibling, or other eligible relation
The dependent's impairment has been certified by a medical practitioner
The dependent is resident in Canada

The CCC does not require the Disability Tax Credit certificate, though having one simplifies the claim. Ask your accountant whether this applies to your situation.

Disability Tax Credit (DTC)

The Disability Tax Credit is a non-refundable federal tax credit for individuals with a severe and prolonged physical or mental impairment. It is not directly a home care deduction, but having a DTC certificate is often required to access other credits (such as the METC attendant care claim) and benefits.

Applying for the DTC involves completing a T2201 form, which must be certified by a qualified medical practitioner. If the person receiving home care has not applied for the DTC and has a qualifying impairment, this is worth discussing with their physician.

Home Accessibility Tax Credit and other relevant credits

Home Accessibility Tax Credit (HATC)

The Home Accessibility Tax Credit is a federal non-refundable credit for qualifying renovations that make a home safer or more accessible. Eligible individuals are those aged 65 and older, or those eligible for the DTC.

Eligible renovation expenses include grab bars, ramps, stair lifts, walk-in bathtubs, wider doorways, and other modifications that reduce hazards or improve access. This credit applies to home modifications, not to ongoing PSW service fees - but it is directly relevant to families investing in home safety to support aging in place.

Ontario Seniors' Care at Home Tax Credit

Ontario offers a refundable tax credit specifically for seniors 70 and older (or their spouse/partner) to help with eligible home care and medical expenses. This is a provincial credit claimed on the Ontario tax return. It may apply to eligible attendant care and other in-home expenses. Check the Ontario Ministry of Finance or speak with a tax professional for current eligibility details and amounts, as provincial credits change year to year.

Keeping documentation

Regardless of which credits apply, families paying for private home care should keep:

All receipts for PSW and home care services, showing dates and amounts
The provider's name and business information
Any medical certificates or T2201 forms supporting the disability claim
Bank or credit card statements as backup

Aviora provides clients with detailed invoices and payment records upon request, which can be used for tax purposes.

For a full picture of home care funding options, see our guide on home care costs and funding in Ontario.

Common questions

Home care tax credits in Ontario: questions families ask

Can I claim home care expenses on my Canadian tax return?

In many cases, yes. Attendant care costs including PSW services may be claimed under the Medical Expense Tax Credit if the person receiving care has a certified disability or medical condition. The Canada Caregiver Credit may also apply. Always confirm eligibility with a tax professional.

What is the Medical Expense Tax Credit and does it apply to PSW care?

The Medical Expense Tax Credit is a non-refundable federal credit for eligible medical expenses. Attendant care - including PSW services - may qualify for a person with a certified impairment. A T2201 Disability Tax Credit Certificate is typically required to claim attendant care under the METC. Consult a tax professional to determine eligibility and documentation requirements.

What is the Home Accessibility Tax Credit?

The HATC is a federal credit for qualifying renovations that make a home safer or more accessible for individuals aged 65+ or those eligible for the Disability Tax Credit. It applies to physical modifications (grab bars, ramps, etc.) rather than ongoing PSW service fees.

Should I talk to a tax professional about home care expenses in Ontario?

Yes. Tax rules for medical and attendant care expenses are specific, eligibility conditions vary, and amounts can be significant. A CPA or tax accountant familiar with CRA medical expense claims is the right person to determine what applies to your situation. This guide provides general information only and is not tax advice.

Questions about home care funding in Ontario?

Aviora can walk you through the private home care options available for your situation and provide documentation for tax and insurance purposes. A free consultation is the starting point.

Also useful: home care costs and funding in Ontario, VAC home care benefits, and WSIB home care coverage.

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