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diff --git a/.gitignore b/.gitignore
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+++ b/.gitignore
@@ -8,3 +8,5 @@ docs/_build/
 **/*.ipynb_checkpoints/
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+.DS_Store
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diff --git a/policyengine_canada/parameters/gov/provinces/yt/tax/income/credits/medical_expenses/rate.yaml b/policyengine_canada/parameters/gov/provinces/yt/tax/income/credits/medical_expenses/rate.yaml
new file mode 100644
index 000000000..df004c1df
--- /dev/null
+++ b/policyengine_canada/parameters/gov/provinces/yt/tax/income/credits/medical_expenses/rate.yaml
@@ -0,0 +1,16 @@
+description: Yukon multiplies the net income by the following rate under the medical expense credit.
+
+metadata:
+  period: year
+  unit: /1
+  label: Yukon medical expense credit rate
+  reference:
+  - title: Yukon 2022 non-refundable tax credits medical expenses
+    href: https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/5011-c/5011-c-22e.pdf#page=2
+  - title: Yukon 2023 non-refundable tax credits medical expenses
+    href: https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/5011-c/5011-c-23e.pdf#page=2
+
+values:
+  2022-01-01: 0.03
+  2023-01-01: 0.03
+
diff --git a/policyengine_canada/parameters/gov/provinces/yt/tax/income/credits/yt_medical_expenses_tests.yaml b/policyengine_canada/parameters/gov/provinces/yt/tax/income/credits/yt_medical_expenses_tests.yaml
new file mode 100644
index 000000000..678c63ee0
--- /dev/null
+++ b/policyengine_canada/parameters/gov/provinces/yt/tax/income/credits/yt_medical_expenses_tests.yaml
@@ -0,0 +1,38 @@
+- name: Yukon medical expense credit net income below reduction cap 2022
+  period: 2022
+  input:
+    people:
+      p1:
+        individual_net_income: 10_000
+    households:
+      household:
+        members: [p1]
+        province_code: YT
+  output:
+    yt_medical_expense_credit: 300  # 10_000 * 0.03
+
+- name: Yukon medical expense credit zero net income 2022
+  period: 2022
+  input:
+    people:
+      p1:
+        individual_net_income: 0
+    households:
+      household:
+        members: [p1]
+        province_code: YT
+  output:
+    yt_medical_expense_credit: 0
+
+- name: Yukon medical expense credit net income below reduction cap 2023
+  period: 2023
+  input:
+    people:
+      p1:
+        individual_net_income: 20_000
+    households:
+      household:
+        members: [p1]
+        province_code: YT
+  output:
+    yt_medical_expense_credit: 600  # 20_000 * 0.03
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..a2f8067e9
--- /dev/null
+++ b/policyengine_canada/variables/gov/provinces/yt/tax/income/credits/yt_medical_expenses.py
@@ -0,0 +1,16 @@
+from policyengine_canada.model_api import *
+
+
+class yt_medical_expense_credit(Variable):
+    value_type = float
+    entity = Person
+    label = "Yukon medical expenses"
+    definition_period = YEAR
+    defined_for = ProvinceCode.YT
+    reference = "https://www.canada.ca/content/dam/cra-arc/formspubs/pbg/5011-c/5011-c-23e.pdf" # page 23
+
+    def formula(person, period, parameters):
+        income = person("individual_net_income", period)
+        p = parameters(period).gov.provinces.yt.medical
+        income_fraction = income * p.rate
+        return min_(income_fraction, p.reduction_cap)
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