If you pay for therapy yourself, it's natural to ask: is therapy tax deductible in Ontario? Many people are surprised to learn that therapy fees may count as medical expenses on a Canadian tax return. Whether yours do depends on who provided the care, what the receipt says and how much your insurance already paid. This guide explains how the claim works in general and what to keep. It also shows where to check the rules that apply to you.
This article is general education, not tax advice. Only the Canada Revenue Agency (CRA) can tell you what you can claim on your own return.
The short answer, and why it depends
Therapy is not a simple yes or no on a tax return. In Canada, you don't deduct it the way you deduct some other costs. Instead, eligible medical expenses can be used toward a medical expense tax credit. Whether a therapy fee is eligible depends on the type of provider and the rules the CRA applies to it.
Here is what we can say with confidence. The CRA lists the medical expense credit on its page about eligible medical expenses on your tax return. That page also says its list of common medical expenses is not complete. So not seeing therapy on a short list doesn't settle the question. It means you should read the CRA's full guidance for your situation.
How the medical expense credit works in general
The credit is built around the medical costs you paid during a set period. The CRA page says you can claim eligible expenses you paid in any 12-month period that ends in the tax year you're filing for. You can't claim the same expenses again in a later year. That gives you some room to pick the 12 months that work best for you.
The CRA page also explains who the costs can be for. You can claim eligible costs for yourself, your spouse or common-law partner and your children under 18 on one line of your return. Costs for certain other dependants go on a different line. The page also tells you to claim the matching provincial amount on your provincial form, so your Ontario return is part of the picture.
We won't quote amounts or income limits here. They change from year to year, and the CRA keeps the current numbers on its page. The page we read was written for 2025 returns, so check the year you are filing.
Which providers' fees can be claimed
This is the part that matters most for therapy, and it's where you should read the CRA's wording closely. The CRA's guide to the credit, Income Tax Folio S1-F1-C1, says that a reference to a professional such as a psychologist means a person authorized to practise as one under the laws of the place where the service is given. It also says payments to a medical practitioner for medical services can be eligible.
We aren't going to guess how those words apply to every kind of therapist. The pages we read name psychologists. They don't spell out registered psychotherapists or registered social workers. At our clinic, Registered Psychotherapists (RPs) and Registered Social Workers (RSWs) provide therapy, and our psychologists assess and diagnose. If you want to know which of those fees fit the CRA's wording, ask the CRA directly and keep their answer with your records.
What a good therapy receipt shows
Receipts are the part you control. The CRA says to keep your documents in case it asks to see them later, and not to send them in with your return. In its guide on medical expenses, the CRA says receipts must show the name of the company or individual the expense was paid to. The folio adds that a receipt should show:
the purpose of the payment
the date of the payment
the patient the payment was for
the professional who gave the service, if applicable
The CRA also says a cancelled cheque is not a substitute for a proper receipt.
If you want to be sure your receipts show what the CRA asks for, mention it when you book. Our team can talk through receipts in your free consultation. The CRA's guide to medical expenses lists what to keep. Another CRA page, Preparing to do your taxes, says to keep your documents for 6 years after you file.
If insurance or your benefits plan already paid part
Insurance changes the picture. The CRA says you can only claim the part of an eligible expense that you have not been, and will not be, paid back for. There is one exception. If the payback is included in your income, and you didn't deduct it somewhere else on your return, you can claim the full expense.
So if your plan pays part of a session, the CRA's wording points to the part you paid yourself. Keep your insurer's statement next to your receipt, so the two match.
A Health Spending Account (HSA) works through your employer or plan, and the details differ. Whether an HSA payment counts as being paid back depends on how your plan works. We aren't able to say, so check the CRA's wording before you claim. We accept HSAs, and we can direct bill many plans. You can read more on our direct billing page. Depending on your plan, your insurance may cover the full session fee.
What may not be claimable, or is unclear
Some costs are harder to place. We can't tell you how the CRA treats each one, so we'll name them and let you check.
Setup fees. New clients pay a one-time $50 setup fee, which we don't charge for the free 15-minute consultation. Whether a setup fee counts as part of a medical expense is a question for the CRA.
Fees that aren't for the session itself. If a charge isn't for care given to you, don't assume it's eligible.
Couples and family sessions. The CRA lets you claim for a spouse or common-law partner and for children under 18, but a joint session raises the question of whose name goes on the receipt. Ask the CRA before you claim it.
Care for someone else. The CRA page sets out who counts as a dependant. If you pay for an adult relative's therapy, read that section closely.
If a claim is unclear, it's usually safer to ask than to guess. A short call to the CRA is easier than fixing a return later.
A simple end-of-year checklist
You don't need to be a tax expert to stay organized. A few small habits make filing easier.
Save a receipt after every paid session, and store them in one folder.
Check that each receipt shows the date, the amount, who the session was for and who gave it.
Keep your insurer's statements and any HSA statements with your receipts.
Decide which 12-month period you want to use for your medical expenses.
Read the CRA page for the year you're filing, since the rules and numbers can change.
Keep everything for 6 years after you file.
Setting this up early in the year is much easier than hunting for receipts in March or April.
If cost is what's keeping you from starting
A tax credit helps after you've paid, and many people still need to afford the sessions first. That's a real barrier, and you're not the only one facing it. Our guide to insurance and therapy in Ontario explains how coverage works. CAMH notes that psychologists' fees are not covered by most provincial health plans, which is why so many people use private benefits.
Our sessions are $130 to $200 for individuals, $170 to $200 for couples and families, and $0 to $80 with a student therapist. You can see the full details on our cost page. Psychologist fees depend on the service, and we go over them with you in your free consultation.
Start with a free conversation
You don't have to sort out the money side alone. Book a free 15-minute consultation to ask about our team, our fees and how billing works. We see clients in person in Waterloo, Kitchener, Cambridge and Ottawa, and online across Ontario. No referral is needed. If you'd like to know what therapy is like first, NIMH explains how talk therapy works.
Again, this article is general information and not tax advice. For your own return, rely on the CRA's current guidance.