A frequently asked question from clients is whether they can deduct the cost of clothing purchased for work. The short answer: most clothing is considered personal and therefore not deductible.
The reason is simple: we all need to wear clothes. Tax policy is written to treat everyone equally by disallowing deductions for everyday clothing that can also be worn outside of work. Without this restriction, nearly every professional could argue their wardrobe was a business expense.
That said, there is a narrow exception worth understanding.
The Main Question: Can Clothing Be Deducted?
The Canada Revenue Agency (CRA) and the courts consistently hold that clothing is a personal living expense unless it qualifies as uniforms or protective clothing required by hospital or clinic policy. This is the primary filing position physicians should focus on.
What may be deductible:
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Scrubs or lab coats required under hospital or clinic policy
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Surgical clogs or other fluid-resistant footwear
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CSA-approved protective gear (e.g., goggles, face shields)
What is not deductible:
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Regular clothing such as suits, blazers, or shoes that can be worn outside of work
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Handbags, luggage, or makeup purchased for professional appearance
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Any item bought for convenience rather than necessity
Key Point on Scrubs and Laundering
It makes no difference whether scrubs or lab coats are laundered at the hospital or at home. The issue is whether they are distinctive/protective and required by policy, not where they are washed.
Documentation
Physicians should be able to substantiate that the items claimed were required purchases under hospital or clinic policy and used exclusively for work. CRA may request receipts or policy documentation during a review, so these should be kept in your own files — but they don’t need to be filed with your tax returns.
The Long Shot: Medical Expense or PHSP
Where clothing expenses don’t qualify under the protective/uniform test above, the only fallback is a medical angle — but this applies to a much smaller group of taxpayers and is far less advantageous.
In limited cases, clothing-type items may qualify as a Medical Expense Tax Credit (METC) on a personal return or through reimbursement under a Private Health Services Plan (PHSP).Examples include, but are not limited to:
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Orthopaedic footwear or orthotics (must be prescribed and made-to-order to overcome a disability)
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Compression garments or stockings (must be prescribed by a medical practitioner)
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Medical wigs, or hair replacement, prescribed after abnormal hair loss due to illness (physical or psychological) or treatment
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Special protective garments prescribed for specific conditions (e.g., burns, photosensitivity)
For incorporated physicians, PHSP reimbursement is usually more valuable than claiming the personal METC. Sole proprietors may also use a PHSP, but deduction limits are much lower.
Still, this is a long shot compared to the primary test of whether the item is protective/uniform clothing required by policy.
Common Scenarios:
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Dr. Singh (hospital-based surgeon): Buys scrubs and fluid-resistant surgical clogs required under hospital policy. These qualify as protective clothing and can be deducted as practice expenses.
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Dr. Lee (family physician in private clinic): Buys blazers and dress shirts to project a professional image. These are regular clothes, considered personal and therefore not deductible.
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Dr. McTavish (oncologist): Purchases custom-made compression garments prescribed by a physician for a chronic condition. These do not qualify as practice expenses, but they may be claimed as a medical expense or reimbursed through a PHSP.
If the Expense Is Personal
Where clothing does not fall under either the protective/uniform test or the medical fallback, it must be treated as a personal expense. In that case:
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It cannot be deducted against practice or corporate income
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If reimbursed by your Professional Corporation, it becomes a taxable benefit
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If paid personally, it provides relief only if it qualifies for the medical expense tax credit
About Jonathan Tucker, CPA, CA
Jonathan Tucker is the Managing Director of Tucker Professional Corporation, a boutique accounting firm focused exclusively on physicians across Canada. With more than 20 years of experience advising medical professionals, Jonathan has built a reputation for simplifying complex tax rules and providing clear, practical strategies. His expertise spans corporate structures, advanced tax planning, and estate considerations — always with a focus on helping physicians protect their income and maximize long-term financial advantage.
