Medical Expense Deduction 2026 — Deduct Your Healthcare Costs

What Is the Medical Expense Deduction?

The medical expense deduction is an itemized deduction available to taxpayers who have significant unreimbursed medical costs during the tax year. It allows you to deduct the portion of your medical and dental expenses that exceeds 7.5% of your adjusted gross income (AGI). This deduction is claimed on Schedule A (Form 1040) and is only available if you itemize deductions rather than taking the standard deduction.

The medical expense deduction covers a wide range of healthcare costs: doctor visits, hospital stays, prescription drugs, dental care, vision care, mental health treatment, long-term care, medical equipment, and even transportation costs related to medical care. The key requirement is that the expenses must be primarily for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for treatment affecting any structure or function of the body.

For the 2025 tax year, the 7.5% AGI threshold applies to all taxpayers regardless of age. This threshold was temporarily reduced from 10% to 7.5% by the Tax Cuts and Jobs Act of 2017 for tax years 2017 through 2025. For 2026 and beyond, absent new legislation, the threshold will revert to 10% for most taxpayers, though the 7.5% rate may be extended.

According to IRS data, approximately 6-7 million taxpayers claim the medical expense deduction each year, with the average deduction amount being roughly $8,000 to $10,000 among those who itemize and have qualifying expenses.

Use our free tax refund calculator to compare how itemizing with medical expenses versus taking the standard deduction affects your tax situation.

The 7.5% AGI Floor

The 7.5% AGI floor is the most important concept to understand about the medical expense deduction. It means you can only deduct medical expenses that exceed 7.5% of your AGI. The expenses below this threshold provide no tax benefit.

Here is how the calculation works:

• Step 1: Calculate your adjusted gross income (AGI) from Form 1040.
• Step 2: Multiply your AGI by 7.5% (0.075). This is your threshold amount.
• Step 3: Total all your qualified unreimbursed medical expenses for the year.
• Step 4: Subtract the threshold amount from your total medical expenses.
• Step 5: The result is the amount you can deduct on Schedule A Line 1.

As your AGI increases, the threshold rises proportionally, making it harder to benefit from the deduction. This is why the medical expense deduction tends to be most valuable to taxpayers with moderate incomes but high medical costs — particularly seniors and those with chronic health conditions.

Qualifying Medical Expenses

The IRS allows a broad range of medical expenses to be deducted. Here is a comprehensive list of qualifying expenses:

Medical and Hospital Care

• Doctor, surgeon, and specialist visits
• Hospital stays, including meals and nursing services
• Emergency room and urgent care visits
• Outpatient surgery center fees
• Laboratory and diagnostic test fees
• X-rays, MRIs, CT scans, and other imaging
• Ambulance and emergency medical transportation
• Physical therapy, occupational therapy, and speech therapy
• Chiropractor visits
• Acupuncture
• Psychiatric and psychological care (including therapy sessions)
• Nursing services (including LPN and RN home care)

Prescription Medications

• Prescription drugs and medicines
• Insulin and diabetic supplies
• Prescription birth control
• Smoking cessation programs and prescription nicotine products
• Weight loss programs (when prescribed by a doctor for a specific diagnosed condition)

Dental Care

• Dental exams, cleanings, and X-rays
• Fillings, crowns, bridges, and dentures
• Root canals, extractions, and oral surgery
• Orthodontic treatment (braces, Invisalign)
• Periodontal treatment
• Dental implants

Vision Care

• Eye exams and vision tests
• Eyeglasses and contact lenses (including prescription sunglasses)
• Contact lens solution and supplies
• LASIK and other corrective eye surgery
• Reading glasses (if prescribed by an eye doctor)

Medical Equipment and Supplies

• Wheelchairs, walkers, crutches, and canes
• Hospital beds and patient lifts
• Hearing aids, batteries, and repair
• CPAP machines and supplies for sleep apnea
• Blood pressure monitors (if recommended by doctor)
• Blood sugar test kits and supplies
• Oxygen equipment and supplies
• Prosthetic devices
• Breast pumps and lactation supplies

Long-Term Care and Home Health

• Long-term care services provided to a chronically ill individual
• Nursing home costs (including meals and lodging if primarily for medical care)
• Home health aide services (for medical care)
• Assisted living facility costs (portion allocable to medical care)
• Personal care attendant services

Transportation for Medical Care

• Standard mileage rate for medical travel (21¢/mile for 2025)
• Parking fees and tolls at medical appointments
• Bus, taxi, Uber/Lyft fares to medical appointments
• Airfare for out-of-town medical treatment
• Ambulance services

Home Modifications for Medical Care

• Wheelchair ramps and lifts
• Grab bars and handrails in bathrooms
• Widening doorways for wheelchair access
• Lowering cabinets or modifying kitchens for wheelchair access
• Adding support bars or modifying bathrooms
• Installing stairlifts
• Modifying fire alarms and security systems for hearing-impaired

Non-Qualifying Expenses

The following expenses are generally not deductible as medical expenses:

• Cosmetic surgery — Procedures performed primarily to improve appearance (nose jobs, facelifts, liposuction) are not deductible unless the procedure is necessary to correct a deformity from a congenital abnormality, accident, or disease.
• Over-the-counter medications — Most OTC drugs (pain relievers, cold medicine, allergy medicine) are not deductible unless prescribed by a doctor. Insulin is an exception and is deductible.
• Health club memberships — Gym memberships, fitness classes, and exercise equipment are not deductible even if recommended by a doctor for general health.
• Vitamins and supplements — Generally not deductible unless prescribed by a doctor for a specific diagnosed condition.
• Funeral expenses — Burial, cremation, and funeral costs are not deductible as medical expenses.
• Controlled substances — Any expenses related to illegal drugs or controlled substances (under federal law) are not deductible, even if recommended by a doctor.
• Weight loss programs for general health — Weight loss programs are deductible only if prescribed by a doctor to treat a specific diagnosed condition (obesity, diabetes, heart disease). Weight loss for general health or appearance is not deductible.
• Teeth whitening — Cosmetic dental procedures are not deductible.
• Maternity clothes — Not deductible.
• Medical marijuana — While legal in many states, it remains a Schedule I controlled substance under federal law and expenses are not deductible.

Health Insurance Premiums

Health insurance premiums are one of the largest and most commonly claimed medical expenses. Here is what you need to know:

Deductible premiums include:

• Medicare Part B and Part D premiums (if paid out-of-pocket)
• Medigap (Medicare Supplement) premiums
• COBRA continuation coverage premiums
• Health insurance purchased through the Health Insurance Marketplace
• Individual health insurance policies bought directly from insurers
• Dental and vision insurance premiums
• Long-term care insurance premiums (up to age-based limits)

Non-deductible premiums include:

• Employer-sponsored health insurance premiums paid with pre-tax dollars (through a cafeteria plan or Section 125 plan)
• Health insurance premiums paid by your employer as a tax-free benefit
• Medicare Part A (if you have coverage without paying premiums)

If you are self-employed, you may qualify for the self-employed health insurance deduction, which is an above-the-line deduction on Schedule 1 (not subject to the 7.5% AGI floor). You cannot double-dip — if you claim the self-employed health insurance deduction, you cannot also include those premiums as itemized medical expenses on Schedule A.

Medicare beneficiaries: If you have Medicare Part B premiums deducted from your Social Security benefits, those premiums are considered paid by you and are deductible as medical expenses (if you itemize). Check your annual Social Security benefit statement (Form SSA-1099) for the total Part B premiums withheld.

Long-Term Care Insurance Premiums

Long-term care insurance premiums are deductible as medical expenses, but subject to age-based dollar limits. These limits are adjusted annually for inflation. For 2025, the limits are:

Only the portion of your long-term care premiums up to these limits is deductible. If your premiums exceed these amounts, the excess is not deductible as a medical expense. The limits apply per person, so a married couple where both spouses have long-term care policies can deduct up to the limit for each spouse based on their respective ages.

In addition to premiums, unreimbursed long-term care services received by a chronically ill individual are deductible as medical expenses without dollar limits, provided they are part of a plan of care prescribed by a licensed health care practitioner. This includes home health aide services, adult day care, and nursing home care for chronic conditions.

Medical Mileage Deduction

You can deduct transportation costs for medical care using either the standard medical mileage rate or your actual vehicle expenses. The standard medical mileage rate for 2025 is 21 cents per mile. This is significantly lower than the business mileage rate (67.5¢/mi for 2025) but still provides a meaningful deduction for frequent medical travelers.

In addition to mileage, you can deduct:

• Parking fees at medical appointments, hospitals, and pharmacies
• Tolls incurred while traveling for medical care
• Bus, train, taxi, Uber/Lyft, and other public transportation fares
• Airfare if you travel out of town for medical treatment
• Ambulance services

You can choose between the standard mileage rate and actual expenses. The standard rate is simpler and usually more beneficial unless you have unusually high vehicle operating costs. If you use actual expenses, you can deduct gas, oil, repairs, insurance, and depreciation that are attributable to medical travel — but you must track all expenses and calculate the business-use percentage, which is complex.

Medical mileage is calculated per round trip. For example, if you drive 20 miles round trip to a doctor's appointment, you can deduct 20 x $0.21 = $4.20 for that visit. If you have 12 visits per year, that is $50.40. While small individually, these miles add up — especially for patients with chronic conditions requiring frequent treatment.

Home Modifications for Medical Care

Home modifications made to accommodate a medical condition may be deductible as medical expenses. The key requirement is that the modification is primarily for medical care, not for general home improvement. If the modification adds value to your home, the deductible amount is reduced by the increase in your home's value.

Common deductible modifications include:

• Wheelchair ramps and porch lifts
• Grab bars in bathrooms and hallways
• Handrails and support bars
• Widening doorways for wheelchair access
• Lowering kitchen counters and cabinets
• Modifying bathroom fixtures (roll-in shower, raised toilet)
• Installing stairlifts
• Modifying fire alarms and security systems for hearing-impaired individuals
• Adding visual alert systems for hearing-impaired
• Installing medical alert systems
• Swimming pools (only if prescribed for specific medical treatment, not general fitness)
• Central air conditioning (only if prescribed for a specific respiratory condition and the modification does not increase home value)

If a modification increases your home's value, you must reduce the deductible expense by the amount of the value increase. For example, if you install a wheelchair ramp costing $5,000 and it increases your home's value by $2,000, the deductible amount is $3,000 ($5,000 - $2,000). Some modifications — like grab bars — may not increase home value at all, making the full cost deductible.

How to Claim the Deduction

Claiming the medical expense deduction requires itemizing on Schedule A. Here is the step-by-step process:

1. Calculate your AGI — Determine your adjusted gross income from Form 1040 Line 11.
2. Total your medical expenses — Add up all qualifying unreimbursed medical expenses for the tax year, including insurance premiums, doctor visits, prescriptions, dental, vision, and transportation.
3. Apply the 7.5% threshold — Multiply your AGI by 7.5% and subtract that amount from your total medical expenses. The result goes on Schedule A Line 1.
4. Add other itemized deductions — Include state and local taxes (Line 5a-5e), mortgage interest (Line 8a-8b), charitable contributions (Line 11), and any other itemized deductions.
5. Compare to standard deduction — If your total Schedule A deductions exceed your standard deduction amount, itemizing saves you money. If not, take the standard deduction.

You do not need to submit medical receipts or mileage logs with your tax return. However, you must keep detailed records in case of an IRS audit. The IRS recommends keeping medical expense documentation for at least three years from the date you file your return.

Tax preparation software like TurboTax, H&R Block, and TaxSlayer can guide you through the medical expense deduction process. The software will calculate the 7.5% threshold automatically and compare your total itemized deductions to the standard deduction for your filing status.

Frequently Asked Questions

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