When it comes to understanding are medical expenses tax deductible 2025, knowing the IRS rules is essential. Medical expenses can be tax deductible — but there’s a catch. You can only deduct the amount of your medical costs that exceeds 7.5% of your adjusted gross income (AGI), and only if you itemize your deductions. Here’s everything you need to know.
The 7.5% AGI Rule Explained
The IRS requires that your total qualifying medical expenses exceed 7.5% of your AGI before you can deduct anything. Only the amount above that threshold is deductible.
Example: Your AGI is $60,000. You had $8,000 in medical expenses.
- 7.5% threshold: $60,000 × 0.075 = $4,500
- Amount above threshold: $8,000 − $4,500 = $3,500 deductible
Use our free medical deduction calculator to see your exact number in seconds.
What Medical Expenses Are Deductible?
The IRS allows deductions for a wide range of medical and dental expenses paid for you, your spouse, or your dependents. Qualifying expenses include:
Doctor & Hospital Visits
- Payments to physicians, surgeons, specialists, and psychologists
- Hospital stays and nursing home care (if primarily for medical reasons)
- Urgent care and emergency room visits
- Telehealth and virtual appointments
Medications & Equipment
- Prescription drugs and insulin (guide →)
- Hearing aids and batteries
- Wheelchairs, crutches, walkers
- Eyeglasses, contact lenses, and LASIK (guide →)
- Blood pressure monitors and diabetes testing supplies
Dental & Vision
- Cleanings, fillings, extractions, crowns, and root canals (guide →)
- Orthodontia (braces) for medical necessity
- Eye exams and prescription glasses
Mental Health
- Psychotherapy and counseling sessions (guide →)
- Psychiatric care and inpatient mental health treatment
- Substance abuse treatment programs
Medical Travel
- Mileage to and from medical appointments: 21¢ per mile in 2024
- Public transit, parking, and tolls for medical visits
- Flights and lodging for out-of-town medical treatment (guide →)
What Is NOT Deductible
- Over-the-counter medications (aspirin, cold medicine, vitamins)
- Cosmetic procedures (unless medically necessary)
- Gym memberships (unless prescribed by a doctor for a specific condition)
- Health insurance premiums paid through pre-tax payroll deductions
- Expenses reimbursed by insurance or an HSA/FSA
For more tax guidance, see our guides on therapy tax deductions and standard deduction vs. itemizing. For official IRS information, visit the IRS Publication 502 on medical and dental expenses.
Who Benefits Most from the Medical Deduction?
This deduction is most valuable for people who:
- Had a major medical event, surgery, or hospitalization
- Have chronic conditions requiring ongoing treatment
- Are seniors with Medicare premiums and regular healthcare costs
- Already itemize deductions (mortgage interest, property taxes, etc.)
If your medical expenses are significant, don’t leave this on the table. Try our medical deduction calculator to see if you qualify and how much you can deduct.
Also explore: Complete medical tax deduction guide | AGI calculator for medical expenses
This article is for educational purposes only. Medical deduction rules are complex — consult a tax professional for personalized guidance.
How to Calculate Your Medical Expense Deduction
Here’s the step-by-step calculation:
- Step 1: Add up all your qualifying medical expenses paid out-of-pocket for the year
- Step 2: Calculate 7.5% of your Adjusted Gross Income (AGI) — found on line 11 of Form 1040
- Step 3: Subtract the 7.5% threshold from your total medical expenses
- Step 4: The result (if positive) is your deductible medical expense amount
Example: Your AGI is $60,000 and you had $8,000 in medical expenses.
- 7.5% × $60,000 = $4,500 (your threshold)
- $8,000 − $4,500 = $3,500 deductible
If your AGI were $90,000, the threshold would be $6,750, and only $1,250 of your $8,000 would be deductible. The higher your income, the harder it is to clear the threshold.
Medical Expenses Paid for Others
You can deduct medical expenses you paid for yourself, your spouse, and your dependents. This includes children claimed on your return and, in some cases, parents or other relatives you support financially — even if they don’t live with you. If you paid medical bills for a child who is shared with another parent, you can deduct the portion you actually paid, regardless of which parent claims the dependency exemption.
Insurance Premiums and the Medical Deduction
Out-of-pocket health insurance premiums are generally deductible as medical expenses on Schedule A. However, premiums paid with pre-tax dollars (such as through an employer’s payroll deduction) are not deductible — they’ve already been excluded from your income.
Self-employed individuals have a separate and often more advantageous option: the self-employed health insurance deduction on Schedule 1 of Form 1040. This deduction reduces your AGI directly, before you calculate the 7.5% threshold for the medical expense deduction.
Long-Term Care Insurance Premiums
Premiums for qualified long-term care insurance are deductible, but only up to age-based limits. For 2025, the deductible limits are:
- Age 40 or under: $470
- Age 41–50: $880
- Age 51–60: $1,760
- Age 61–70: $4,710
- Age 71+: $5,880
These amounts are per person. A couple both over 71 could potentially deduct up to $11,760 in long-term care premiums, subject to the 7.5% AGI floor.
Timing Your Medical Deductions
Medical expenses are deductible in the year you pay them, not when they’re billed or when treatment occurs. If you received a bill in December but paid it in January, it’s deductible in the year you paid.
This creates a useful tax strategy: if you’re close to clearing the 7.5% threshold, consider paying outstanding medical bills in December rather than January to bunch them into one tax year. Similarly, you could schedule elective procedures (dental work, vision correction, etc.) to maximize your deduction in a given year.
FSA, HSA, and the Medical Deduction
Expenses paid from a Flexible Spending Account (FSA) or Health Savings Account (HSA) are not deductible as medical expenses — those accounts are funded with pre-tax dollars, so the tax benefit has already been taken. Only out-of-pocket expenses paid with after-tax money count toward your Schedule A medical deduction.
Bottom Line
Yes, medical expenses are tax deductible — but the 7.5% AGI threshold means most people only benefit in years with unusually high medical costs. If you’re on the fence about whether you have enough to itemize, add up your medical expenses, mortgage interest, state taxes paid, and charitable contributions. If the total exceeds the standard deduction for your filing status ($15,000 single / $30,000 married in 2025), it’s worth itemizing and claiming the medical deduction.