Government respondedPaper451-00353 · Parliament 45

Refundable gender-affirmation tax credit

Petitioners ask for a refundable lifetime tax credit up to $70,000 for gender‑affirming care under WPATH Standards of Care v8. The government responds that existing tax credits and targeted funding support transition care.

Why we would sign this petition

  • Reduces major out-of-pocket costs by offering up to $70,000 lifetime relief, increasing affordability of medically necessary gender-affirming care.
  • Could improve access to treatments petitioners link to reduced suicidal ideation and better mental health after transition.
  • Frames gender-affirming care as a health entitlement consistent with Canada’s health and equality commitments, promoting equitable access.

Why we wouldn’t sign this petition

  • A refundable credit would require substantial public funds and raises fiscal and federal‑provincial coordination questions.
  • May overlap with the Medical Expense Tax Credit and provincial coverage, risking duplication and administrative complexity.
  • A tax credit reimburses after payment; direct public coverage or service expansion might ensure timelier, equitable access without upfront costs.

The summary and both sets of reasons are AI-generated from the petition and given equal weight. Claims are the petitioners’ own; consult the official record for the full text.

Official petition

Petition to the House of Commons of Canada, Honourable Francois-Philippe Champagne Whereas: The Canada Health Act sets out to protect, promote and restore the physical and mental well-being of residents of Canada and to facilitate reasonable access to health services without financial or other barriers; The Canadian Charter of Rights and Freedoms, specifically Section 15, protects LGBTQ+ rights by guaranteeing equality under the law and ensuring that individuals are not discriminated against based on gender identity; Transgender People are one of the most marginalized and suicidal demographics in our society and do not have reasonable access to health services to fully transition in their gender identity; Access to gender-affirming healthcare, such as hormone therapy, surgery, and other treatments necessary to align physical characteristics with one's gender identity, remains severely limited thus creating a significant barrier to physical, emotional, and psychological well-being for transgender and non-binary individuals; Medical affirmation encompasses a variety of medical interventions (such as hormone therapy, surgery, and many other treatments) to align physical characteristics with one's gender identity; Mental health support includes therapy and counseling to address emotional distress, anxiety, and other mental health concerns related to gender identity; Transgender and Non-Binary people introduce themselves in society with the appearance of their bodies and faces, to do so requires medical and mental intervention (such as Hormone replacement therapy, voice therapy, breast augmentation, laser and/or electrolysis hair removal, Facial Feminization Surgery, vocal surgery, body contouring, mastectomy, tracheal shave and psychological counseling) and this is their gateway to living a full life without stigma and alleviates gender dysphoria; 67% of transitioning people thought more about suicide before transitioning whereas only 3% thought about suicide after their transition. We, the undersigned, citizens and residents of Canada, call upon the Government of Canada, The Honourable François- Philippe Champagne to: 1) Provide a Refundable tax credit of up to a lifetime amount up to $70,000.00 for all Gender Affirmation care and surgeries as outlined in World Professional Association of Transgender Health, Standards of care 8; 2) Include but not limited to Hormone replacement therapy, voice therapy, breast augmentation, laser and/or electrolysis hair removal, Facial feminization Surgery, vocal surgery, body contouring, mastectomy, tracheal shave and psychological counseling.

Government response

Response by the Minister of Finance and National Revenue Signed by The Honourable François-Philippe Champagne Everyone, regardless of their gender identity, has the right to be their authentic self, and should have access to the care and support they need to lead a happy and healthy life. Canada’s publicly funded universal health care system provides an essential foundation for a strong, fair, and prosperous nation. The Government of Canada is committed to ensuring our health care system is there to meet the needs of all Canadians now and into the future. The Income Tax Act recognizes the effect of above-average medical expenses on an individual’s ability to pay income tax through the non-refundable Medical Expense Tax Credit (METC). The METC is available for qualifying medical expenses in excess of the lesser of $2,834 (for 2025) and 3 percent of net income. The 3-percent threshold defines above-average medical expenses for tax purposes. There is no upper limit on the total amount of expenses that may be claimed and taxpayers may pool and claim the medical expenses that they or their spouses or common-law partners and minor children incur. In general, medical expenses paid to a medical practitioner (or nurse), or to a public or licensed private hospital for medical services are eligible for the METC. The Canada Revenue Agency is responsible for determining whether specific expenses meet the eligibility requirements for the credit. The Government of Canada is also supporting transition-related care for trans and non-binary people, including through the establishment of the Sexual and Reproductive Health Fund (SRHF). The SRHF aims to strengthen the healthcare system and related supports for under-served community members, including people who are 2SLGBTQI+. Close to $7.5 million has been provided to projects related to gender-affirming care, which include improving the quality and access of sexual and reproductive health care for 2SLGBTQI+ people, and gender-affirming sexual and reproductive health resources for healthcare providers and Two-Spirit, trans, and non-binary Canadians. In addition, Budget 2025 announced new, permanent funding for the Department for Women and Gender Equality to ensure sustained progress toward equality and safety for women, girls, and 2SLGBTQI+ people. This includes $54.6 million over five years, starting in 2026-27, with $10.9 million ongoing, to support 2SLGBTQI+ communities.