Medical Expense Tax Deduction 2026: AGI Threshold and Eligible Costs

Information checked: 2026-09-09 · Maintenance label: Evergreen check

The medical expense deduction lets you deduct unreimbursed medical and dental costs, but only the portion that exceeds 7.5% of your adjusted gross income.

That threshold is the whole story. For most households it means the deduction is worth nothing in an ordinary year and can be worth a great deal in a year with a hospital stay, a long course of treatment, or a nursing home.

This guide covers how the threshold works, which costs count, and the timing decisions that determine whether you clear it.

Key takeaway

You may deduct only the amount of unreimbursed medical and dental expenses above 7.5% of your adjusted gross income, and only if you itemise on Schedule A. Expenses for yourself, your spouse and your dependents can be combined. Insurance premiums and travel to treatment count; over-the-counter medicines and most cosmetic surgery do not.

Table of contents

• How the threshold works
• What counts
• What does not count
• Timing is the lever
• Frequently asked questions
• Summary

Related guides

• EITC Eligibility 2026: Income Limits, Filing Status, and Refund Rules — A refundable credit that does not require itemising
• Student Loan Interest Deduction 2026: Income Limits and Form 1098-E — The other deduction that works alongside the standard deduction

How the threshold works

Only the excess over 7.5% of adjusted gross income is deductible. A worked example of the arithmetic, not of your own case:

	Amount
Adjusted gross income	$60,000
7.5% threshold	$4,500
Unreimbursed medical expenses	$11,000
Deductible amount	$6,500

Two consequences follow. First, the deduction is all-or-nothing in practice: below the threshold you get nothing at all. Second, it only helps if your total itemised deductions exceed the standard deduction, which for 2026 is $16,100 for single filers, $32,200 for joint filers and $24,150 for heads of household.

That second point defeats most claims. A large medical year still produces no benefit if your itemised total lands below the standard deduction.

What counts

• Fees for doctors, dentists, surgeons, psychiatrists and other practitioners
• Hospital care, and nursing home care where medical care is the principal reason for being there
• Prescription medicines and insulin
• Medical equipment including wheelchairs, hearing aids and prescription glasses
• Transport to and from medical treatment
• Health insurance premiums
• Addiction treatment and smoking cessation programmes

You may include expenses paid for yourself, your spouse and your dependents in the same year. Combining a household's costs is often what pushes a claim over the threshold.

What does not count

• Insurance premiums paid by your employer
• Over-the-counter medicines
• Cosmetics and toiletries
• General health improvement programmes
• Most cosmetic surgery

The deduction applies only to expenses not compensated by insurance or otherwise. Anything reimbursed — by a plan, a health account or another party — comes out of the total before you apply the threshold.

Timing is the lever

Because the threshold is annual, the year in which you pay matters more than the year in which you were treated. If you are already going to clear 7.5% this year, elective costs paid before 31 December join that total. If you are nowhere near it, deferring to a year when you expect large costs may produce a deduction that would otherwise be lost entirely.

1. Add up what you have already paid this year, unreimbursed.
2. Compare it against 7.5% of your expected adjusted gross income.
3. Add your other itemised deductions and compare the total against your standard deduction.
4. Only if both tests clear does an additional payment this year produce any tax benefit.

Keep receipts and explanations of benefits for everything. The deduction is calculated from what you actually paid, not from what you were billed.

Free help from trained volunteersIRS VITA and TCE ›Free in-person return preparation for people who qualify by income, age or disability. Volunteers are IRS-certified.

Frequently asked questions

What is the threshold?

7.5% of adjusted gross income. Only the amount above that is deductible.

Do I have to itemise?

Yes. The deduction is claimed on Schedule A, so it only helps if your total itemised deductions exceed your standard deduction.

Can I include my parent's medical bills?

You can include expenses paid for a dependent. Whether a parent is your dependent depends on the dependency tests.

Are insurance premiums deductible?

Premiums you pay can count. Premiums paid by your employer do not.

What about expenses my insurance reimbursed?

Only unreimbursed expenses count. Subtract anything compensated by insurance or otherwise before applying the threshold.

Summary

Two gates, both of which must open: expenses above 7.5% of adjusted gross income, and itemised deductions above your standard deduction.

In a heavy medical year, combine the household's unreimbursed costs and check the timing of anything elective before the year ends. In an ordinary year, this deduction will almost certainly do nothing.