How to write off marijuana in Canada [Legally]

By: Updated: October 12, 2018
By following specific guidelines from CRA, Canadian consumers of medical marijuana can deduct the cost of their medication.


Updated: Oct 12, 2018

As of Oct 17, 2018: marijuana will be legalized for recreational use among adults in Canada. Many provinces have chosen to set legal age as the same as their legal drinking age (18 or 19 depending on the province). 

There will be a 30 gram limit on how much a person can buy at once or have on possession in public.

Canadians can also grow up to 4 plants at home, except for those living in Quebec and Manitoba. 

The federal government taxes $1 for every gram or 10 cents on the purchase (whichever is more). A quarter of the tax goes directly to the federal government and the rest to the provinces. 

Canadian authorities will be testing for impaired driving through traditional observation techniques, but may adopt additional countermeasures if approved. It is legal to bring pot in a domestic flight, but not on international flights (ex. to the U.S.). 

Most importantly, legalization does not change the fact that Canadians who have been prescribed medical marijuana can still write-off their expense using a Health Spending Account (HSA)

Medical Marijuana as an Eligible HSA Expense

The amount paid to Health Canada or a designated producer for medical marijuana or marijuana seeds is considered an eligible expense. The marijuana must be for a person authorized to possess or use the drug for medical purposes under the Marijuana Medical Access Regulations or exempt under section 56 of the Controlled Drugs and Substances Act.

Olympia has confirmed with CRA that in order for medical marijuana claim to be eligible under the medical tax act, including through a Health Spending Account, it must first be prescribed by a qualified practitioner.

The only qualified practitioners who are authorized by law to prescribe medical marijuana are Medical Doctors, and in some remote rural locations in Northern Canada, Nurse Practitioners. There are no exceptions. 

You are then required to submit your prescription along with an application for registration to one of only seven authorized medical marijuana producers in Canada. The authorized producers will validate the prescription (practitioner’s qualifications, legitimacy of the prescription) and register you for ongoing legal marijuana use.

Obtain your refills through your authorized producer of choice (one of the seven listed below), and you will receive your product and a receipt from that producer.  As of March 31, 2014, Health Canada will not be producing medical marijuana – only the seven producers in the chart below are authorized to dispense medical marijuana.

3755 Medical Marijuana After March 31, 2014: Only if fees paid to one of the seven legally designated producers. Before March 31, 2014: Only if fees paid to Health Canada or one of the seven legally designated producers
Producer Phone number Email  Website (if applicable)
Bedrocan Canada Inc. 1-855-420-7887 Bedrocan
Canna Farms Ltd. 1-855-882-0988 Cannafarms
CanniMed Ltd. 1-855-787-1577 Cannimed
Mettrum Ltd. 1-844-638-8786 (METTRUM) Mettrum Ltd.
The Peace Naturals Project Inc 1-888-64-PEACE (73223) The Peace Naturals
ThunderBird Biomedical Inc. 1-778-588-9528 ThunderBird Biomedical
Tweed Inc. 1-855-55-TWEED (89333) Tweed


Small business owners in Canada can submit 100% of the cost of their medical marijuana through their corporation by using a Health Spending Account.

Download our FREE guide below and learn how to write off your personal medical expenses:

Download Beginner's HSA Guide for an incorporated individual

What's in this article

Subscribe to thge small buisness outlook

Subscribe to the blog