Travel Expenses (At Least 40 km)

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

Yes. Transportation costs paid to a commercial carrier for medical travel of at least 40 km are CRA-eligible medical expenses when equivalent care is unavailable locally. 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 when a commercial carrier is not readily available — calculated using either the detailed method (the medical-travel share of actual operating and ownership expenses, supported by receipts and records) or the simplified method (qualifying kilometres multiplied by the CRA cents-per-kilometre rate for the province or territory where the travel begins)
• 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, accommodation, and parking — 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.
• The simplified vehicle rate varies by tax year and by the province or territory where the travel begins. Check the CRA's current meal and vehicle rates used to calculate travel expenses.
• The simplified method does not require detailed vehicle-expense receipts, but keep a record of the qualifying kilometres and supporting trip documentation. The CRA may ask for evidence supporting the claim.

Frequently Asked Questions

Are travel expenses of at least 40 km CRA eligible?

Yes. Amounts paid to a commercial carrier qualify under paragraph 118.2(2)(g) of the Income Tax Act, and personal vehicle costs qualify 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 (the medical-travel share of actual vehicle expenses) or the simplified method (qualifying kilometres multiplied by the CRA rate for the province or territory where the travel begins).

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". Vehicle calculations use the CRA's meal and vehicle rates used to calculate travel expenses.