diff --git a/changelog_entry.yaml b/changelog_entry.yaml
index e69de29bb..b8ef7a44b 100644
--- a/changelog_entry.yaml
+++ b/changelog_entry.yaml
@@ -0,0 +1,4 @@
+- bump: minor
+  changes:
+    added:
+    -  Yukon medical expense credit.
diff --git a/policyengine_canada/parameters/gov/provinces/yt/tax/income/credits/medical_expense/max_amount.yaml b/policyengine_canada/parameters/gov/provinces/yt/tax/income/credits/medical_expense/max_amount.yaml
new file mode 100644
index 000000000..7d84437a8
--- /dev/null
+++ b/policyengine_canada/parameters/gov/provinces/yt/tax/income/credits/medical_expense/max_amount.yaml
@@ -0,0 +1,11 @@
+description: Yukon allows for the following maximum amount under the medical expense credit.  
+values:
+  2022-01-01: 2_479
+metadata:
+  unit: currency-CAD
+  label: Yukon medical expense credit max amount
+  # Credit is not mentioned in the in Yukon Income Tax Act
+  reference:
+  - title: Yukon Tax-Medical Expenses
+    href: https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/5011-c/5011-c-22e.pdf#page=2 
+
diff --git a/policyengine_canada/parameters/gov/provinces/yt/tax/income/credits/medical_expense/rate.yaml b/policyengine_canada/parameters/gov/provinces/yt/tax/income/credits/medical_expense/rate.yaml
new file mode 100644
index 000000000..405e88264
--- /dev/null
+++ b/policyengine_canada/parameters/gov/provinces/yt/tax/income/credits/medical_expense/rate.yaml
@@ -0,0 +1,10 @@
+description: Yukon multiplies the medical expenses by the following rate under the medical expenses tax credit. 
+values:
+  2022-01-01: 0.03
+metadata:
+  unit: /1
+  label: Yukon Medical Expenses credit applicable rate
+  # Credit is not mentioned in the in Yukon Income Tax Act
+  reference:
+  - title: Yukon Tax-Medical Expenses
+    href: https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/5011-c/5011-c-22e.pdf#page=2
diff --git a/policyengine_canada/tests/gov/provinces/yt/tax/income/credits/yt_medical_expenses.yaml b/policyengine_canada/tests/gov/provinces/yt/tax/income/credits/yt_medical_expenses.yaml
new file mode 100644
index 000000000..c3e1cc8e4
--- /dev/null
+++ b/policyengine_canada/tests/gov/provinces/yt/tax/income/credits/yt_medical_expenses.yaml
@@ -0,0 +1,35 @@
+- name: Zero Medical Expenses of Net Income over Maximum Amount
+  period: 2022
+  input:
+    province_code: YT
+    household_medical_expenses: 0
+    household_net_income: 10_000_000_000
+  output:
+    yt_medical_expense_credit: 0
+
+- name: Zero Medical Expenses of Net Income below Maximum Amount
+  period: 2022
+  input:
+    province_code: YT
+    household_medical_expenses: 0
+    household_net_income: 100
+  output:
+    yt_medical_expense_credit: 0
+
+- name: Medical Expenses of Net Income below Maximum Amount
+  period: 2022
+  input:
+    province_code: YT
+    household_medical_expenses: 10_000
+    household_net_income: 100
+  output:
+    yt_medical_expense_credit: 9_997
+
+- name: Medical Expenses of Net Income over Maximum Amount
+  period: 2022
+  input:
+    province_code: YT
+    household_medical_expenses: 4_000
+    household_net_income: 10_000_000_000
+  output:
+    yt_medical_expense_credit: 1_521
diff --git a/policyengine_canada/variables/gov/provinces/yt/tax/income/credits/yt_medical_expenses.py b/policyengine_canada/variables/gov/provinces/yt/tax/income/credits/yt_medical_expenses.py
new file mode 100644
index 000000000..ef89bbac5
--- /dev/null
+++ b/policyengine_canada/variables/gov/provinces/yt/tax/income/credits/yt_medical_expenses.py
@@ -0,0 +1,26 @@
+from policyengine_canada.model_api import *
+
+
+class yt_medical_expense_credit(Variable):
+    value_type = float
+    entity = Household
+    label = "Yukon Medical Expense Credit"
+    definition_period = YEAR
+    defined_for = ProvinceCode.YT
+
+    def formula(household, period, parameters):
+        p = parameters(
+            period
+        ).gov.provinces.yt.tax.income.credits.medical_expense
+
+        claimed_medical_expenses = household(
+            "household_medical_expenses", period
+        )
+        net_income = household("household_net_income", period)
+        medical_expenses_rate = p.rate
+
+        applicable_amount = min_(
+            p.max_amount, net_income * medical_expenses_rate
+        )
+
+        return max_(claimed_medical_expenses - applicable_amount, 0)
diff --git a/policyengine_canada/variables/household/expenses/medical/household_medical_expenses.py b/policyengine_canada/variables/household/expenses/medical/household_medical_expenses.py
new file mode 100644
index 000000000..1c5f1c6cd
--- /dev/null
+++ b/policyengine_canada/variables/household/expenses/medical/household_medical_expenses.py
@@ -0,0 +1,9 @@
+from policyengine_canada.model_api import *
+
+
+class household_medical_expenses(Variable):
+    value_type = float
+    entity = Household
+    label = "Household medical expenses"
+    unit = CAD
+    definition_period = YEAR