Ways to Reduce the Cost of Home Care in Ontario
You may qualify for thousands of dollars in tax credits and government programs.
Many families are surprised to learn that the cost of home care may be partially offset through federal and provincial tax credits. While eligibility varies, these programs can significantly reduce the overall cost of caring for a loved one at home.
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Tax Credits & Programs That May Apply
Depending on your situation, you or your loved one may qualify for one or more of these programs.
Canada Caregiver Credit
You may qualify if you support a spouse, parent, grandparent, or other eligible family member with a physical or mental impairment.
- Federal tax credit
- May reduce your taxes owing
- Applies to many family caregiving situations
Disability Tax Credit (DTC)
If your loved one has a prolonged physical or cognitive disability, this important federal credit may unlock additional government benefits beyond the tax credit itself.
- Can be claimed retroactively
- May lead to other federal benefits
- Requires medical certification
Ontario Seniors Care at Home Tax Credit
Ontario residents aged 70+ may qualify for a refundable tax credit on eligible home care expenses, including personal support services.
- Covers eligible home care costs
- Refundable credit
- Helps offset aging-at-home expenses
Medical Expense Tax Credit
Certain home care services or products may be eligible as medical expenses, reducing the amount of income tax you may owe.
- Includes many care-related expenses
- Can be claimed by you or your loved one
- Keep your receipts
Need help understanding what you may qualify for?
While we don't provide tax advice, we regularly help families understand the programs that may reduce the cost of care. We're happy to point you toward the appropriate resources while connecting you with the right caregiver for your needs.
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- Serving Canadian families for over 20 years
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Frequently Asked Questions
Answers to the questions families ask us most about paying for home care.
Can caregiver costs be claimed on my income taxes?
In many cases, yes. Certain home care expenses may qualify as eligible medical expenses under the Medical Expense Tax Credit. Depending on your circumstances, you may also qualify for programs such as the Canada Caregiver Credit, the Disability Tax Credit (DTC), or the Ontario Seniors Care at Home Tax Credit.
Eligibility depends on factors such as the type of care provided, who receives the care, and your personal tax situation. We recommend speaking with a qualified tax professional for advice specific to your circumstances.
What home care expenses may qualify?
Eligible expenses may include:
- Personal Support Workers (PSWs)
- Nursing care
- Attendant care
- In-home assistance for individuals with disabilities
- Certain prescribed medical services
- Some home care provided by licensed professionals
The rules vary depending on the program and your individual situation.
Can I claim expenses for my parents or grandparents?
Possibly. If you provide financial support to an eligible parent, grandparent, or another qualifying family member with a physical or mental impairment, you may qualify for certain caregiver tax credits.
Eligibility depends on your relationship, your loved one's income, and other CRA requirements.
Does private caregiving qualify for tax credits?
It can. Some privately arranged caregiving expenses may qualify as eligible medical expenses if CRA requirements are met.
Because every family's situation is unique, it's best to keep detailed receipts and consult your accountant or tax advisor.
What if my loved one has dementia?
Many individuals living with dementia may qualify for additional government programs, including the Disability Tax Credit (DTC), depending on how the condition affects daily living.
Families caring for someone with dementia may also be eligible for caregiver-related tax credits and deductions.
What documents should I keep?
We recommend keeping:
- Caregiver invoices
- Receipts
- Proof of payment
- Care agreements
- Medical documentation (when applicable)
- Physician certifications if required for specific programs
Good record-keeping can make tax filing much easier.
Can I receive government funding for home care?
Depending on your circumstances, publicly funded home care may be available through Ontario Health atHome. Many families also choose to supplement government-funded care with private caregivers to receive additional hours or specialized support.
Our team can help you understand your options.
Will hiring privately affect my tax credits?
Not necessarily. In some situations, privately paid caregiving expenses may still qualify under certain tax rules. Eligibility depends on the services provided and CRA requirements.
Keeping accurate records and receipts is essential.
Can you tell me which tax credits I qualify for?
We're happy to explain the programs that may be available and direct you to helpful government resources. However, we do not provide tax or legal advice.
For personalized tax guidance, we recommend speaking with a Chartered Professional Accountant (CPA) or qualified tax advisor.