The Disability Tax Credit (DTC) is a non‑refundable federal tax credit for Canadians with severe and prolonged impairments in physical or mental functions. Its purpose is to reduce income tax payable, offsetting some of the extra costs associated with a disability.
Official guidance emphasises that you must apply first, then claim the credit on your tax return . For 2026, the base amount of the credit is $10 341, which provides a federal tax reduction of up to $1 448. For the 2025 tax year the base amount is $10 138, with a supplement of $6 032 for children under 18.
What the Disability Tax Credit Is
The DTC is a non‑refundable tax credit. Non‑refundable means it reduces the tax you owe, but it does not produce a refund if the credit exceeds your tax payable. The Canada Revenue Agency (CRA) explains that the DTC helps persons with disabilities or their supporting family members reduce the income tax they may have to pay. You must be eligible and approved before you can claim it on your return.
Who Qualifies for the DTC?
To be eligible for the DTC, you must have a severe and prolonged impairment in physical or mental functions. A prolonged impairment is one that has lasted or is expected to last at least 12 months. You may qualify if a medical practitioner certifies that:
- You are blind (visual acuity of 20/200 or worse, or a field of vision of 20 degrees or less);
- You have a marked restriction in one basic activity of daily living such as walking, feeding, dressing, hearing, speaking or mental functions; or
- You have significant limitations in two or more categories whose cumulative effect is equivalent to a marked restriction.
A marked restriction means you are unable, or it takes at least three times as long as someone without the impairment, to perform the activity even with appropriate therapy, medication and devices. The restriction must exist all or substantially all of the time (90 % or more). If you do not meet those criteria but need life‑sustaining therapy, you may still qualify when the therapy supports a vital function, is required at least twice per week and requires at least 14 hours of time each week. People with type 1 diabetes are deemed to meet the therapy criteria.
Which Medical Practitioners Can Certify the Impairment?
Only specific medical practitioners can certify your impairment on Form T2201. The CRA lists the following professionals and the impairments they may certify:
- Medical doctor or nurse practitioner: any impairment;
- Optometrist: vision;
- Audiologist: hearing;
- Occupational therapist: walking, feeding, dressing and cumulative effects of limitations;
- Physiotherapist: walking;
- Psychologist: mental functions;
- Speech‑language pathologist: speaking.
How to Apply for the Disability Tax Credit
1. Gather information and find a medical practitioner
Before applying, decide who will claim the credit and gather basic information about the person with the impairment and any supporting family member. Medical practitioners may charge a fee to complete the application; the fee can be claimed as a medical expense on your tax return.
2. Complete Form T2201 (digital or paper)
The DTC application has two parts:
- Applicant information (Part A): completed by the person with the impairment (or their legal representative). It provides personal details and identifies any supporting family members. You can fill out Part A online through CRA My Account, or by phone via the CRA’s automated service. After submitting Part A, you receive a reference number to give to your medical practitioner.
- Medical certification (Part B): completed by the chosen medical practitioner. They enter details about the effects of the impairment and certify whether you meet the criteria. In the digital process, the practitioner submits Part B online. For paper applications, the practitioner completes and signs the form and gives it back to you.
You may apply any time during the year, but if you submit your DTC application with your tax return, the CRA will process the credit before assessing your return, which could delay your assessment. To avoid delays, submit the application before filing your return.
3. Submit the completed application
You or your medical practitioner can submit the form. Digital applications are sent automatically; paper forms must be mailed to a CRA tax centre. Keep a copy of everything you send.
4. Wait for CRA’s review and decision
After receiving your application, the CRA assesses whether you meet the criteria. Processing time varies; you can check the status through the CRA’s progress tracker. If your application is approved, you will receive a notice of determination showing the years for which you are eligible. You do not have to re‑apply each year unless the CRA asks or your eligibility period expires. You must inform the CRA in writing if your medical condition improves so that you no longer meet the criteria. If your application is denied, you can request a review or provide new medical information.
Claiming the Disability Tax Credit
Once your DTC application is approved, you may claim the disability amount on your income tax return. For the 2025 tax year, individuals 18 and older can claim $10 138, and those under 18 can claim the base amount plus a supplement of $6 032. The CRA notes that claiming the credit for past years may result in a refund; you can request adjustments for up to 10 previous years.
For 2026, the update sets the DTC amount at $10 341, giving a federal tax reduction up to $1 448. The update states that a severe and prolonged impairment means being blind, being markedly restricted in a basic activity of daily living, or significantly restricted in more than one basic activity. You must still have a medical practitioner certify your condition and submit Form T2201.
To claim the credit:
- For yourself: enter the disability amount on line 31600 of your tax return. If you were under 18 at the end of the year, add the supplement (calculate using the federal worksheet).
- For a dependant: if a supporting family member paid for basic necessities (food, shelter, clothing), they may claim unused amounts on line 31800, provided the person with the impairment does not need the entire credit. Family members who may qualify include spouses, common‑law partners, parents, children, grandparents, siblings, aunts, uncles, nieces and nephews.
- For a spouse or common‑law partner: use line 32600 to claim amounts transferred from your partner.
- Splitting the claim: when more than one person supports the same dependant, the credit can be shared, but the total cannot exceed the maximum.
If the person with the disability does not use the entire amount, they can transfer the unused portion to a supporting family member identified in Part A of the application. If the family member was not originally listed, they must send a signed letter to the CRA describing the support provided.
Why You Should Apply
Besides reducing your tax, being approved for the DTC can unlock other federal programs, including the Registered Disability Savings Plan, Canada Workers Benefit disability supplement, Child Disability Benefit, and the Canada Disability Benefit. Approval may also streamline provincial and territorial disability credits.
Conclusion
The Disability Tax Credit can reduce federal income tax and may open the door to other disability-related benefits, but approval depends on clear medical certification and a properly completed Form T2201. The most important step is to show how the impairment affects daily life, not just to name the medical condition.
For the tax side, it is also important to know who should claim the credit, whether unused amounts can be transferred, and whether past tax returns should be adjusted after approval.
Need help reviewing your Disability Tax Credit claim, tax return adjustment, or family transfer options? Contact Bestax to speak with a Canadian tax professional who can guide you through the tax filing side of the DTC process.
FAQs About the Disability Tax Credit in Canada
What is the Disability Tax Credit?
The Disability Tax Credit is a non-refundable tax credit that helps reduce the income tax payable for a person with a severe and prolonged physical or mental impairment, or for a supporting family member who can claim the unused amount. “Non-refundable” means it can reduce tax owing, but it does not create a refund by itself if no tax is payable.
Who can apply for the Disability Tax Credit?
You may apply if you have a severe and prolonged impairment in physical or mental functions, and a qualified medical practitioner can certify how the impairment affects your daily life. The CRA reviews the medical information before approving the application.
What does “severe and prolonged impairment” mean?
“Prolonged” generally means the impairment has lasted, or is expected to last, for at least 12 continuous months. “Severe” means the impairment significantly affects daily activities such as walking, feeding, dressing, speaking, hearing, mental functions, eliminating, or vision.
Do I need a doctor to apply for the DTC?
Yes. The application requires Form T2201, Disability Tax Credit Certificate. Part A is completed by the applicant or legal representative, and Part B must be completed by a qualified medical practitioner.
Can I apply online for the Disability Tax Credit?
Yes. The CRA allows applicants to apply using the digital form through CRA My Account or by phone. You can also apply by paper form and mail it to the CRA.
When should I apply for the DTC?
You can apply at any time during the year. However, the CRA says applying at the same time as filing your tax return may delay your tax assessment because the DTC application must be reviewed first.
How much is the Disability Tax Credit for 2025 and 2026?
For the 2025 tax year, the federal disability amount is $10,138. If the person is under 18 at the end of 2025, they may also claim up to $6,032 as a supplement. For 2026, the Spring Economic Update lists the DTC amount as $10,341, giving a federal tax reduction of up to $1,448.
Can I claim the DTC for past years?
Yes. If the CRA approves your DTC application for previous years, you may be able to adjust past tax returns and claim the disability amount retroactively.
Can a family member claim the Disability Tax Credit?
Yes, if the person with the impairment does not need the full disability amount to reduce their own tax, the unused amount may be transferred to a supporting family member. This may apply to a spouse, common-law partner, parent, child, grandparent, sibling, aunt, uncle, niece, or nephew, depending on the support provided.
What happens after the CRA approves the DTC application?
The CRA sends a notice of determination showing the years you are approved for. Once approved, you can claim the disability amount on your tax return. DTC approval may also help you access other programs, such as the Registered Disability Savings Plan, Child Disability Benefit, Canada Workers Benefit disability supplement, and Canada Disability Benefit.
Disclaimer: The information provided in this blog is for general informational purposes only. For professional assistance and advice, please contact experts.
