Travel Expenses (At Least 40 km)

Are travel expenses (at least 40 km) CRA eligible in Canada?

Yes. An amount paid to a commercial carrier — a person engaged in the business of providing transportation services — to transport a patient is an eligible medical expense under paragraph 118.2(2)(g) of the Income Tax Act, as discussed in paragraph 1.65 of Income Tax Folio S1-F1-C1. All four conditions must be met:

1. The patient travels to a place at least 40 kilometres from where they live to receive medical services.
2. Substantially equivalent medical services are unavailable in the patient's locality.
3. The patient takes a reasonably direct travel route.
4. It is reasonable in the circumstances for the patient to travel to that place.

Because a Health Spending Account reimburses CRA-eligible medical expenses, qualifying medical travel of at least 40 km is eligible for HSA reimbursement.

What Qualifies

• Fares paid to a commercial carrier (bus, train, taxi, airline, ferry) for a trip of at least 40 km to receive medical services unavailable locally
• Personal vehicle operating expenses (fuel, oil, maintenance) when a commercial carrier is not readily available — calculated using either the detailed method (actual receipts for fuel, oil, repairs, insurance, registration, depreciation) or the simplified method (CRA flat rate per kilometre)
• Transportation expenses for one accompanying person when a medical practitioner certifies in writing that the patient cannot travel without assistance

What Does Not Qualify

• Travel to a medical appointment less than 40 km from home
• Travel when equivalent medical services are available locally
• Transportation for non-medical purposes
• Meals and accommodation — those additional travel expenses require a minimum distance of 80 km under paragraph 118.2(2)(h)

Good to Know

• Paragraph 118.2(2)(g) applies specifically to amounts paid to a commercial carrier (bus, train, taxi, airline, etc.). Personal vehicle expenses are only eligible under subsection 118.2(4) when transportation by commercial carrier is not readily available in the patient's locality.

Frequently Asked Questions

Are travel expenses of at least 40 km CRA eligible?

Yes. Amounts paid to a commercial carrier are METC eligible under paragraph 118.2(2)(g), and personal vehicle costs are eligible under subsection 118.2(4) when a commercial carrier is not readily available, provided the four CRA conditions are met.

Can I claim 40 km medical travel through my HSA?

Yes, qualifying medical travel of at least 40 km is reimbursable through a Health Spending Account.

Can I use my personal vehicle instead of a commercial carrier?

Only if transportation services by a commercial carrier are not readily available in the area. In that case, you may claim vehicle operating expenses under subsection 118.2(4) using either the detailed method (actual receipts) or the simplified method (CRA per-kilometre rate).

Can a companion's travel expenses be claimed?

Yes. If a medical practitioner certifies in writing that the patient cannot travel without assistance, one accompanying person's transportation expenses can be claimed under the same provisions.

Source

Based on the CRA's official eligible medical expenses list and Income Tax Folio S1-F1-C1, "Transportation and travel expenses".