Seniors, care and family caregivers
Are care home fees tax deductible as a medical expense in Alberta?
Short answer
Sometimes. Care home fees can be claimed for the Medical Expense Tax Credit when the home gives full-time nursing care and the resident qualifies. Where it does, all regular fees count, including food and accommodation. But that claim blocks the Disability Tax Credit for everyone. A resident eligible for that credit can instead claim the attendant care part of the fees, up to $10,000 a year, and keep it.
What part of an Alberta care home bill do you pay?
In Type A and Type B continuing care homes, the care itself is publicly funded. You pay for the room, meals, housekeeping and utilities. Alberta caps that accommodation charge.
From August 1, 2026, the maximum is $83.05 a day for a private room. That is about $2,526 in an average month. Phone, cable, laundry and some medications are paid on top. Part of the room charge can come back as a tax credit. That needs you, your spouse or a supporting child to pay income tax.
When do care home fees count as a medical expense?
The Income Tax Act allows several kinds of care costs. Which one applies depends on the person and the home.
CRA treats a nursing home as a place that gives full-time nursing care to patients who cannot care for themselves. This is a tax test, not an Alberta care label. Ask the home and your tax preparer whether it meets the test. Where only part of a facility gives that care, only that part counts.
- Full-time care in a nursing home: for a person eligible for the Disability Tax Credit. Or for a person a doctor certifies as dependent on others for lack of normal mental capacity. No dollar limit.
- Attendant care: for a person eligible for the Disability Tax Credit. Up to $10,000 a year, or $20,000 in the year of death.
Nursing home fees or the Disability Tax Credit: which is better?
You must choose. Claiming full-time nursing home care blocks the Disability Tax Credit for everyone, including a transfer to a spouse or child. For 2026, the federal disability amount is $10,341.
A person eligible for the Disability Tax Credit can instead claim the part of the fees paid for attendant care, and keep the credit. Ask the home for a receipt that separates attendant care from accommodation. Then work out both options before choosing.
Who claims, and how much is lost to the threshold?
Medical expenses can be claimed for any 12-month period ending in the tax year. Either spouse can claim the expenses of both spouses. If your parent depended on you for support, you can claim the parent's medical expenses on your own return, on line 33199.
The expenses are reduced by 3% of the parent's net income, or $2,890 for 2026 if that is less. Keep the receipts in the parent's name and proof that you paid. On the final return after a death, the period can be any 24 months that include the date of death.
Related questions
Can I claim my mother's care home fees on my own tax return?
If your parent depended on you for support, you can claim the parent's medical expenses on your own return, on line 33199. The parent does not have to be infirm. Keep receipts in the parent's name and proof that you paid.
Does dementia qualify for the Disability Tax Credit?
Memory loss and other changes in thinking can qualify if they restrict daily life at least 90% of the time. A diagnosis alone is not enough; the certificate must describe the effect. Once CRA approves earlier years, it can reassess up to 10 earlier years.
What is the most an Alberta care home can charge for a private room?
From August 1, 2026, Alberta's maximum accommodation charge for a private room is $83.05 a day, about $2,526 in an average month. Alberta adjusts these maximums each year for inflation.
Drawn from Legacy Planning in Care, Chapter 5. Paying for care, including continuing care homes, by Derik Godbout, PBA, CEA, DMA. Reviewed October 2026. General information, not advice for your situation; rules and amounts change, so confirm current figures before you act.
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TaxOnTax™ Advisory Ltd. is a tax planning, accounting and executor advisory practice that also provides plain-language tax education. Derik Godbout is a PBA, CEA and DMA, Personal Tax Services Specialist™, not a CPA, lawyer, registered investment adviser, or licensed insurance professional. Nothing on this site constitutes personalized tax, legal, investment, or insurance advice. Always consult a qualified professional before acting on any information.