Are Medical Expenses Tax Deductible?

Key takeaways

• The 7.5% rule: You can deduct only the medical and dental costs that go above 7.5% of your adjusted gross income.

• Itemizing comes first: You need to itemize on Schedule A, so the deduction generally helps only when itemizing beats the standard deduction.

• What counts: Doctor visits, prescriptions, dental care and medical mileage can qualify. Gym dues, funerals and most over-the-counter drugs don't.

• Other options: Health savings accounts, flexible spending arrangements and the self-employed health insurance deduction can also cut taxes on health costs.

Doctor visits, prescriptions and insurance premiums add up fast, so you may wonder: are medical expenses tax deductible? They can be if you meet IRS rules. This guide covers how the deduction works, which costs count and when claiming it makes sense.

Are medical expenses tax deductible?

Yes, but only in some cases. Federal rules let you deduct medical and dental costs for you, your spouse and your dependents that exceed 7.5% of AGI. AGI, or adjusted gross income, equals your total income minus certain adjustments.

You can claim this deduction only if you itemize on Schedule A of Form 1040. An itemized deduction is a specific expense you subtract from your income instead of taking the flat standard deduction. The deduction also covers only unreimbursed costs, meaning money insurance or another source didn't pay back to you.

Because of these two hurdles, the deduction often helps most in a year with large medical bills.

What is the medical expense deduction?

The medical expense deduction lets you subtract qualified health care costs above a set floor from your taxable income. Think of 7.5% of your AGI as a threshold you have to cross first. Only the spending above that line counts.

Here's an updated example. Say your AGI is $40,000, which makes your threshold $3,000. If you paid $5,000 in qualified, unreimbursed medical bills, you could deduct $2,000.

Your dependents generally need to meet IRS tests for a qualifying child or qualifying relative, according to IRS Publication 502.

Who can claim the medical expense deduction?

Only taxpayers who itemize on Schedule A can claim this deduction. When you itemize, you list each eligible expense instead of taking one flat amount. Common itemized deductions include:

• Medical and dental expenses

• Mortgage interest

• Charitable contributions

• Property taxes

Itemizing generally makes sense only when your itemized total adds up to more than your standard deduction. You'll find the current standard deduction amounts later in this guide.

How to calculate the medical expense deduction

You can figure your deduction in four steps. Grab your tax return and your medical receipts before you start.

• Find your AGI: Look for your adjusted gross income on Form 1040.

• Multiply by 7.5%: The result becomes your threshold.

• Add up qualified costs: Total the unreimbursed medical and dental expenses you paid during the year.

• Subtract the threshold: Anything above it counts as your medical expense deduction.

Here's how the math works for someone with a $50,000 AGI.

In this example, you'd add $2,250 to your other itemized deductions on Schedule A.

What medical expenses are tax deductible?

The IRS allows costs for medically necessary care, including preventive care, treatment, surgeries, dental care and vision care. Prescriptions, eyeglasses, contact lenses, hearing aids and insulin can count. Visits to psychologists and psychiatrists can qualify too.

Health insurance premiums can also count, as long as you paid them with after-tax money.

IRS-permitted medical deductions

IRS Publication 502 lists many expenses you can include. Here are common ones:

• Payments to doctors, dentists, surgeons, psychiatrists and other medical practitioners

• X-rays and lab services

• Prescription medicines and insulin

• Hospital and nursing home care

• Diagnostic tests

• Addiction treatment and smoking-cessation programs

• Weight-loss programs that treat a disease a physician diagnosed

• Acupuncture

• Transportation to and from medical care

• Dentures, eyeglasses, contact lenses, hearing aids, crutches, wheelchairs and service animals

• Medical or long-term care insurance premiums you pay out of pocket with after-tax money

Driving to appointments? The 2025 medical mileage rate is 21¢ per mile, and you can add parking and tolls. The IRS set 2026 rates at 20.5¢ per mile for January through June and 23.5¢ per mile for July through December.

Lodging near a hospital can count too, up to $50 per night for each person. The stay must be primarily for and essential to care from a doctor in a licensed hospital or similar facility. It can't be lavish or include significant personal pleasure, and meals don't count.

Long-term care insurance premiums carry yearly caps based on age. The 2025 per-person limit runs $480 for ages 40 and under and $6,020 for ages 71 and older. Premiums within the cap still face the 7.5% floor.

Which expenses can't you deduct?

Some health-related costs don't qualify, even when they feel essential. You generally can't deduct:

• Funeral and burial costs

• Over-the-counter medicines, except insulin

• Premiums your employer plan paid or you paid with pretax money

• Everyday personal items like toothpaste

• Cosmetic surgery, with some exceptions

• Nonprescription nicotine gum or patches

• Gym, health club or spa dues

Cosmetic surgery can qualify when it corrects a deformity from a congenital abnormality, an accident or a disfiguring disease.

Is it worth claiming medical expenses on your taxes?

Claiming medical costs pays off only when your itemized deductions beat your standard deduction. The standard deduction gives you a flat amount based on your filing status, with no receipts needed. Here are the federal amounts for the next two filing seasons:

Say you're a single filer with $12,000 in other itemized deductions and a $2,250 medical deduction. Your total of $14,250 falls short of the $15,750 standard deduction for 2025. In that case, the standard deduction likely saves you more.

Age 65 or older? Between 2025 and 2028, you may claim an extra $6,000 senior deduction, which phases out above $75,000 of modified AGI or $150,000 for joint filers. This break stands apart from the medical expense deduction.

How to claim medical expenses on your taxes

If itemizing makes sense for you, follow these steps. Tax software or a tax professional can walk you through each one.

• Total your qualified costs: Add up unreimbursed medical and dental expenses for you, your spouse and your dependents.

• Figure your threshold: Multiply your AGI by 7.5%.

• Complete Schedule A: Enter your medical costs and other itemized deductions on Schedule A of Form 1040.

• Compare your totals: Choose itemizing only if your total beats your standard deduction.

The IRS says you should keep records of your medical and dental expenses to support your deduction. Don't send those records with a paper return. A tax documents checklist can help you stay organized.

Self-employed health insurance deduction

Self-employed? You may deduct health insurance premiums without itemizing. Here's how this deduction works, according to IRS Publication 502:

• No itemizing needed: It's an adjustment to income, which you report on Schedule 1 of Form 1040, line 17.

• Net profit needed: Your business generally needs a net profit for the year.

• Earned income cap: Your deduction can't exceed your earned income from that business.

• Employer plan limit: You can't deduct premiums for any month you could join a subsidized plan through your employer or your spouse's employer.

You can figure the amount on Form 7206 or with a worksheet in the Form 1040 instructions. You'll need Form 7206 if you have more than one source of self-employment income, file Form 2555 or include long-term care premiums. Any premiums left over can go on Schedule A, where the 7.5% floor applies.

Other tax-advantaged ways to pay for medical costs

Two types of accounts can help you pay health costs with pretax or tax-free money. Each one comes with its own rules.

A health savings account, or HSA, lets you set aside money for qualified medical expenses. You need coverage under a high-deductible health plan, or HDHP. An HDHP carries a minimum deductible of $1,700 for self-only coverage in 2026.

• Tax-free withdrawals: You can take tax-free HSA distributions to pay qualified medical expenses.

• 2026 limits: You can contribute up to $4,400 for self-only coverage or $8,750 for family coverage.

• Catch-up contributions: If you're 55 or older, you can add $1,000 more.

A health flexible spending arrangement, or FSA, works through your employer. You fund it with salary reductions, meaning your employer sets aside part of your pay before taxes.

• Employer choice: Your employer decides whether to offer an FSA and sets plan limits.

• 2026 limit: You can contribute up to $3,400 in 2026.

• Carryover: Some plans let you carry over up to $680 into the next year.

You can't deduct an expense on Schedule A if you paid it with tax-free HSA money or an FSA reimbursed you.

Track your medical costs all year

Medical bills can catch you off guard, but a little planning can make tax time easier. Save receipts for doctor visits, prescriptions and mileage as you go. At year-end, compare your total against 7.5% of your AGI to see whether itemizing makes sense.

Even if you don't itemize this year, your records can help you plan for next year. For questions about your own situation, consult a tax professional or the IRS.

If you file your taxes through the Chime^® app, you can get your federal tax refund up to 5 days early with direct deposit to your Chime account. (see disclosure 1) ¹