Medical Cannabis (Marijuana)

Is medical cannabis CRA eligible in Canada?

Conditionally. Amounts paid for cannabis, cannabis oil, cannabis plant seeds, or cannabis products purchased for medical purposes from a holder of a licence for sale (as defined in subsection 264(1) of the Cannabis Regulations) are eligible medical expenses under the Medical Expense Tax Credit (METC) and can be reimbursed through a Health Spending Account (HSA).

To qualify, the patient must be a holder of a medical document (as defined in subsection 264(1) of the Cannabis Regulations). The Cannabis Regulations also require that the patient be registered as a client of the holder of a licence for sale and that purchases be made from the holder with whom the patient is registered.

What Qualifies

• Cannabis, cannabis oil, cannabis plant seeds, or cannabis products purchased for medical purposes from a Health Canada-licensed holder of a licence for sale
• Purchases made by a patient who holds a valid medical document and is registered as a client with the licensed seller

What Does Not Qualify

• Cannabis purchased from unlicensed sources or retailers not holding a licence for sale
• Cannabis purchased without a valid medical document and client registration
• Growing and production costs where a patient holds a registration certificate to legally produce cannabis for their own medical purposes — the cost of pots, soil, nutrients, lights, and other growing supplies is not an eligible medical expense (note: the cost of cannabis plant seeds and cannabis itself may still qualify)
• Recreational cannabis purchased without a medical document

Good to Know

• Registration required: A patient cannot simply purchase medical cannabis from any legal retailer and claim the cost as a medical expense. The purchase must be made from the specific licensed holder with whom the patient is registered.
• Medical document: The patient must hold a medical document as defined under the Cannabis Regulations — this is the authorization that supports the medical use of cannabis.

Frequently Asked Questions

Is medical cannabis CRA eligible?

Conditionally. The patient must hold a valid medical document, be registered as a client with a Health Canada-licensed holder of a licence for sale, and purchase from that specific licensed holder.

Can I claim medical cannabis through my HSA?

Yes, when all conditions are met. Retain your medical document, proof of client registration, and receipts from the licensed seller.

Can I claim growing costs if I produce my own medical cannabis?

No. Where a patient holds a registration certificate allowing them to legally produce a limited amount of cannabis for their own medical purposes, the cost of growing and producing cannabis — such as pots, soil, nutrients, and lights — is not an eligible medical expense.

Source

Based on the CRA's official eligible medical expenses list and Income Tax Folio S1-F1-C1, "Medical marijuana and cannabis products for medical purposes".