Travel Expenses (At Least 80 km)

Are travel expenses (at least 80 km) CRA eligible in Canada?

Yes. Other reasonable travel expenses — including meals, accommodation, and parking — to transport a patient for medical services are eligible medical expenses under paragraph 118.2(2)(h) of the Income Tax Act, as discussed in paragraphs 1.68–1.70 of Income Tax Folio S1-F1-C1. All four conditions must be met:

1. The patient travels to a place at least 80 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.

This is broader than the 40 km rule: at 80 km, meals, accommodation, parking, and other reasonable travel costs all qualify in addition to transportation. Because a Health Spending Account reimburses CRA-eligible medical expenses, qualifying medical travel of at least 80 km is eligible for HSA reimbursement.

What Qualifies

• Reasonable meals incurred during travel of at least 80 km to receive medical services unavailable locally
• Accommodation (hotel, motel) when an overnight stay is necessary for the medical trip
• Parking fees at the medical facility or during the trip
• Vehicle operating expenses (fuel, oil, maintenance) calculated using either the detailed or simplified method
• Transportation, meals, and accommodation for one accompanying person when a medical practitioner certifies in writing that the patient cannot travel alone

What Does Not Qualify

• Travel when equivalent medical services are available in the patient's locality
• Luxury accommodation upgrades beyond a reasonable amount
• Non-medical travel costs bundled with a medical trip

Good to Know

• Vehicle and meal expenses can be calculated using either the detailed method (actual receipts) or the simplified method (CRA flat rates — per-kilometre rate for vehicle, flat daily rate for meals). Accommodation and parking require actual receipts regardless of which method is used.

Frequently Asked Questions

Are travel expenses of at least 80 km CRA eligible?

Yes. Reasonable transportation, meals, accommodation, and parking for medical travel of at least 80 km are METC eligible under paragraph 118.2(2)(h), provided the four CRA conditions are met.

Can I claim 80 km medical travel through my HSA?

Yes, qualifying medical travel expenses of at least 80 km are reimbursable through a Health Spending Account.

Should I use the detailed or simplified method for expenses?

Either method is accepted by the CRA. The detailed method requires keeping all actual receipts. The simplified method uses CRA flat rates (per-kilometre for vehicle, flat daily rate for meals) without the need for individual receipts. Accommodation and parking always require actual receipts regardless of which method you choose.

Can a companion claim meals and accommodation too?

Yes. If a medical practitioner certifies in writing that the patient cannot travel alone, one accompanying person's transportation, meals, and accommodation expenses are all eligible under the 80 km threshold.

Source

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