Ads keep this website free for you. does not research or endorse any product or service appearing in ads on this site.  Before making a major financial decision you  should consult a qualified professional.

Private Health Plan Premiums
Canadian Tax and
Financial Information

If you use an ad blocker, please consider a small contribution to help keep free for everyone.

Need an accounting, tax or financial advisor? Look in our Directory.  Use above search box to easily find your topic!   Stay Connected with!
What's New
Personal Tax
Sales Taxes
Financial Freedom
Financial Planning
Real Estate
British Columbia
Atlantic Provinces
Federal Budget
Prov/Terr Budgets
Statistics etc.
Site Map
Advertise With Us
Contact Us/About Us
Links & Resources
Filing Your Return  -> Private Health Plan Premiums

Private Health Plan Premiums - Extended Health Benefit Costs

Premiums paid to a private health services plan, such as extended health benefits or a dental plan, other than those fees paid by an employer, qualify as medical expenses for purposes of the medical expense tax credit.  Fees paid for a provincial health care plan (such as BC Medical Services Plan premiums, which have been discontinued) do not qualify.  Many employees pay all or a portion of the premiums for their extended health benefits, with the premiums being deducted from their pay.  When the employer pays the premiums for provincial health care plan, this is considered a taxable benefit to the employee.

Often, the income of the person paying the premiums is high enough that they are not able to claim medical expenses, because it is only the expenses in excess of 3% of net income that can be claimed.  If there is a lower income spouse, it may be beneficial to claim all the costs on the tax return of that spouse.

If a person is self employed, the premiums paid for a private health services plan can be deducted from self employment income, instead of being claimed as a medical expense.  This would result in greater (or at least equal) tax savings, and is a way to provide a tax-free benefit to employees of a small business.  See our article on private health services plans.

Tax Tip:  Make sure you include private health plan premiums when calculating your total medical expenses.

Revised: February 26, 2022


Copyright © 2002 Boat Harbour Investments Ltd. All Rights Reserved.  See Reproduction of information from

Facebook  | Twitter  |  See What’s New, stay connected with by RSS or Email
The information on this site is not intended to be a substitute for professional advice.  Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage. 
Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.