Medical Tax Deductions for Cancer Patients: What You Can Write Off During Treatment (2025)

A cancer diagnosis brings enormous medical costs — and many of those costs are deductible. From chemotherapy and radiation to travel to treatment centers, wigs, and clinical trial expenses, understanding what you can write off can provide meaningful financial relief during an already difficult time. Here’s a comprehensive guide to cancer-related medical expense deductions for 2025.

Cancer Treatment Costs Are Clearly Deductible

All cancer treatment is a qualifying medical expense under IRS rules. Cancer is unambiguously a disease, and costs to treat it — to diagnose, cure, mitigate, or treat — qualify for the medical expense deduction on Schedule A, subject to the 7.5% AGI threshold.

What Cancer-Related Expenses Are Deductible?

Medical Treatment Costs

Chemotherapy and infusion treatments
Radiation therapy
Immunotherapy and targeted therapy drugs
Hormone therapy
Surgery and anesthesia
Hospital inpatient stays
Oncologist, surgeon, and specialist fees
Diagnostic tests and biopsies
Scans (CT, PET, MRI) and imaging
Laboratory and pathology fees
Pain management and palliative care
Hospice care costs (if applicable)

Prescription Medications

All prescription cancer drugs — including oral chemotherapy, specialty biologics, and anti-nausea medications
Medications to manage side effects (anti-nausea, pain, steroids)
Growth factor injections (like Neulasta or Neupogen) to prevent infection

Wigs and Prosthetics

The IRS specifically recognizes that the cost of a wig purchased for hair loss resulting from chemotherapy is a deductible medical expense. This is an often-missed deduction. Similarly, breast prostheses and breast forms following mastectomy are deductible, as is breast reconstruction surgery.

Travel to Treatment Centers

Transportation costs to and from cancer treatment are deductible. You can deduct:

Mileage driven to treatment at the IRS medical rate (21 cents per mile in 2025)
Actual costs for taxis, rideshares, buses, trains, or ambulances
Parking fees and tolls
Airfare and transportation costs when traveling to a distant cancer center for specialized treatment
Lodging near a cancer treatment center (up to $50 per night per person, with certain conditions) when travel is primarily for medical treatment

Lodging for Out-of-Town Treatment

If you must travel away from home to receive cancer treatment at a specialized center, lodging expenses can be partially deductible. The IRS allows a deduction of up to $50 per night per person — so if a caregiver accompanies the patient, up to $100 per night can be deducted. The lodging must be primarily for medical care (not for personal travel), and the care must be provided at a hospital or similar institution.

Mental Health Treatment

Cancer can take a serious mental health toll. Therapy, psychiatry, and mental health counseling to address depression, anxiety, or trauma related to a cancer diagnosis are deductible medical expenses — same as any other mental health treatment.

Rehabilitative Care

Physical therapy, occupational therapy, and rehabilitative services after cancer surgery or treatment are deductible. This includes lymphedema management, speech therapy after head and neck cancer treatment, and other rehabilitation services.

Medical Equipment and Supplies

Equipment prescribed for cancer or its treatment — including enteral feeding supplies, oxygen equipment, compression garments for lymphedema, and other medically necessary supplies — are deductible.

Clinical Trials: Are Expenses Deductible?

If you participate in a clinical trial for cancer treatment, your out-of-pocket costs for routine medical care provided as part of the trial are generally deductible. Costs for the investigational drug or procedure itself are typically paid by the trial sponsor, but your transportation to trial sites, lodging, and standard-of-care medical costs are deductible expenses.

The 7.5% AGI Threshold for Cancer Patients

Cancer treatment costs are typically substantial, which means many cancer patients easily clear the 7.5% AGI threshold — especially in the year of diagnosis and active treatment. A key consideration: in the year of a cancer diagnosis, your income may be reduced if you couldn’t work (lowering your AGI and thus your threshold), while your medical expenses spike significantly.

Even if insurance covers much of the cost, out-of-pocket maximums for many plans are $3,000–$9,000 or more, and with co-pays, deductibles, and uncovered expenses, total out-of-pocket costs often far exceed the 7.5% floor for most income levels.

What’s Not Deductible for Cancer Patients

A few cancer-adjacent costs don’t qualify:

Special foods — A special diet (organic foods, supplements, specific nutritional protocols) recommended for cancer recovery is generally not deductible because food is a normal personal expense
General wellness supplements — Vitamins and OTC supplements taken for general wellness during treatment are not deductible unless specifically prescribed to treat a documented deficiency
Life insurance premiums — Even if purchased because of a cancer diagnosis, life insurance is not a medical expense

Record-Keeping During Treatment

Keeping track of cancer treatment costs while undergoing treatment is challenging but important. Consider maintaining a simple expense log or spreadsheet tracking: date, provider/pharmacy, description of service or medication, total charge, insurance payment, and your out-of-pocket amount. Save all Explanation of Benefits statements from your insurer and all receipts. This documentation is essential if the IRS asks questions and will also help you accurately calculate your deductible amount at tax time.

The Bottom Line

Nearly every expense related to cancer diagnosis and treatment qualifies as a deductible medical expense — from chemo and surgery to wigs and travel to treatment centers. For most cancer patients, the 7.5% AGI threshold is easily cleared due to the high cost of treatment and potentially reduced income during illness. If you’re a cancer patient or supporting a family member through treatment, tracking all qualifying expenses carefully and working with a tax professional can provide meaningful financial relief at a difficult time.