Everything You Need to Know About Fertility Tax Credits

Did you know that there are provincial and federal tax credits available to help offset some of the costs that fertility patients incur throughout your treatment? This article will provide an overview of two tax credits you may be eligible for this upcoming tax season. 

The Ontario Fertility Treatment Tax Credit 

Starting in 2025, Ontario residents can benefit from a new refundable tax credit.

• Coverage: 25% of eligible fertility-related expenses
• Annual Maximum Credit: $5,000, applicable up to $20,000 in qualifying expenses
• Eligibility: Expenses must be incurred within the 2025 calendar year and not reimbursed by insurance or other programs

Eligible Expenses:

• In Vitro Fertilization (IVF) cycles
• Egg Freezing
• Intrauterine Insemination (IUI) cycles
• Fertility Medications
• Cryostorage (egg, sperm, embryos) fees
• Diagnostic testing
• Fees associated with donor sperm or eggs and surrogacy arrangements, provided they are incurred within Canada
• Travel for treatment (more than 40km from your residence)

Example: If you spend $20,000 on eligible fertility treatments in 2025, you could receive a $5,000 tax credit when filing your Ontario tax return.

The Federal Medical Expense Tax Credit

In addition to provincial support, the federal government offers the Medical Expense Tax Credit (METC), a non-refundable credit that can further reduce your tax liability.

• Coverage: A wide range of medical expenses, including many fertility-related costs.
• Eligibility: Available to all Canadian residents, including those in Ontario and British Columbia

Eligible Expenses:

• Fertility Treatment Procedures: IVF, IUI, ICSI, embryo transfer, egg freezing, sperm freezing, sperm extraction/processing
• Storage Fees: Cryostorage of sperm, eggs, and embryos paid during the tax year
• Donor Sperm and Eggs: Purchase from donor banks or agencies
• Surrogacy Expenses: If incurred in Canada and otherwise eligible under CRA rules
• Related Medications: Prescription medications; partially reimbursed meds can be claimed for the uncovered portion
• Supplies: Needles and syringes for prescribed fertility meds
• Medical Consultations: Fees for fertility-related consults
• Medical Tests: Non-OHIP covered lab/imaging/testing for fertility
• Clinical Facility Fees: Costs associated with procedures performed in clinical settings
• Travel Expenses: For travel >40 km one-way to access fertility treatment, including mileage, gas, public transit, meals, lodging (with receipts)
• Allied Health Services: Where permitted by CRA, fertility-related care from licensed professionals like naturopaths, acupuncturists, psychologists, or social workers

Ineligible Expenses:

• Over-the-counter or non-prescribed medications
• Unprescribed allied health services (e.g. massage therapy)
• Health insurance premiums
• Cosmetic procedures
• Vitamins and supplements (unless prescribed for a medical condition)
• General wellness or fitness expenses (e.g. gyms, personal trainers)

To claim the METC, your total medical expenses must exceed a threshold based on your income. Keep all receipts and supporting documentation.

Visit the CRA’s Medical Expenses page for a full list of eligible expenses, definitions, and filing instructions.