Guides ยท Last reviewed October 28, 2026
Deducting medical bills on your taxes: the 7.5% of AGI rule
You can deduct medical and dental expenses only to the extent they exceed 7.5% of your adjusted gross income (AGI), and only if you itemize deductions on Schedule A (Form 1040).
Check your bill in 3 minutes
Free, private, no sign-up. See your options, deadlines, and a ready-to-send letter.
The rule in plain English
- Add up your qualifying medical and dental expenses for the year.
- Multiply your AGI by 7.5% (0.075). That's the floor.
- Only the amount above the floor can be deducted.
- You get the benefit only if you itemize on Schedule A.
Example (made-up numbers): AGI is $60,000, so the floor is $4,500 (7.5% of $60,000). Qualifying expenses are $7,000. The deductible part is $2,500. If you take the standard deduction instead of itemizing, you don't get this deduction.
What the IRS says can count
- Fees paid to doctors, dentists, surgeons, and other licensed providers
- Inpatient hospital care and certain nursing home costs
- Insulin and prescription medicines or drugs
- Eyeglasses, contact lenses, hearing aids, and dentures
- Transportation primarily for and essential to medical care
- Health insurance premiums that cover medical care, or qualified long-term care
What the IRS says doesn't count
- Amounts paid for nonprescription medicines
- Funeral or burial expenses
- Toothpaste, toiletries, or cosmetics
- Most cosmetic surgery
- Premiums your employer paid, unless they're included in box 1 of your Form W-2
The full list is longer. Check IRS Topic 502 and Publication 502 for your situation, or ask a tax professional.
Keep records
Save itemized bills, insurance statements (EOBs), and proof of payment. An itemized bill shows exactly what you were charged. If you set up a payment plan, record each payment.
Common questions
Do I need to itemize to deduct medical expenses?
Yes. The IRS says you deduct them on Schedule A (Form 1040), which means you itemize your deductions.
What is the percentage threshold?
The IRS says you can deduct the part of your medical and dental expenses that exceeds 7.5% of your adjusted gross income.
Are over-the-counter medicines deductible?
The IRS says amounts paid for nonprescription medicines are not. Insulin and prescription medicines can be.
Check your bill in 3 minutes
Free, private, no sign-up. See your options, deadlines, and a ready-to-send letter.
Sources
IRS page last reviewed October 9, 2026. Tax rules can differ for your situation; this is not tax advice. Billmira is a self-help information tool, not a law firm, and this isn't legal, tax, or medical advice. Rules change and plans differ; check the official sources above and your own documents.