Are Your MSP Contributions Tax-Deductible?

Medical Services Plan (MSP) premiums are a monthly charge for government-administered, single-payer health care services in British Columbia. The premiums are mandatory. Canadians can claim medical expenses on their income tax returns but MSP premiums are not a qualifying expense. MSP premiums are therefore not tax deductible. However, premiums paid to a private health insurance plan are tax deductible.

The Canada Revenue Agency has a long list of qualifying medical expenses. Premiums paid to private plans that cover medical care, dental care and hospitalization are eligible for the deduction. Canadians also can claim medical services provided out of the country by a qualifying professional in a public or licensed hospital. Medical services provided by medical practitioners may also be claimed, but who qualifies as a "medical practitioner" varies from province to province. In British Columbia, these include acupuncturists, chiropractors and dieticians.