The Disability Tax Credit (DTC) is one of Canada’s most essential non-refundable tax credits. It helps reduce the income tax burden for eligible individuals living with disabilities and their supporting family members. In this guide, we’ll explain everything you need to know about the DTC: who qualifies, how to apply, and how to claim the credit on your return.
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✅ What is the Disability Tax Credit (DTC)?
The Disability Tax Credit is a non-refundable tax credit offered by the Canada Revenue Agency (CRA) to help individuals with physical or mental impairments reduce the amount of income tax they owe. If eligible, the DTC can result in significant savings for the taxpayer or a supporting family member.
📋 Eligibility Criteria for DTC
To be eligible for the DTC, the person must have a severe and prolonged impairment that:
- Lasts or is expected to last for at least 12 months
- Significantly restricts activities of daily living (such as walking, seeing, hearing, dressing, feeding, or mental functions)
- Is certified by a medical practitioner using Form T2201
👩⚕️ Qualified Medical Practitioners
The DTC application must be signed and certified by an eligible practitioner, which could include:
- Medical Doctor (MD)
- Psychologist (for mental functions)
- Speech-language pathologist (for speech impairments)
- Optometrist (for vision)
- Occupational therapist or physiotherapist (for mobility)
📝 How to Apply for the Disability Tax Credit
- Download CRA Form T2201: This is the Disability Tax Credit Certificate.
- Complete the sections for the applicant (Part A).
- Have a medical practitioner complete Part B and sign the certification.
- Submit the form to the CRA by mail or via My Account online portal.
The CRA will assess the application and notify you in writing of approval or denial.
💰 How Much Is the DTC Worth in 2025?
For the 2025 tax year, the federal amount is approximately $9,500, which translates into a non-refundable credit of about $1,425. Additional provincial credits may apply depending on your province of residence.
If the disabled person has little or no taxable income, a supporting relative may be able to claim the credit through a transfer.
📆 Claiming the DTC on Your Tax Return
Once approved, the DTC can be claimed on your tax return by entering the appropriate amounts on Line 31600 (for self) or Line 31800 (for a dependent). CRA approval may also allow retroactive claims up to 10 years if eligible.
👨👩👦 Can Parents Claim the DTC for a Child?
Yes. If your child qualifies for the DTC and has little or no income, you can transfer the credit to reduce your own income tax. Additional child disability benefit (CDB) payments may also be available through the Canada Child Benefit (CCB).
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🧠 Related Benefits and Programs
Receiving the DTC may make you eligible for other programs, including:
- Registered Disability Savings Plan (RDSP)
- Canada Workers Benefit (CWB) Disability Supplement
- Medical Expense Tax Credit
- Home Accessibility Tax Credit
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📌 Final Tip: Don’t Give Up on a Denial
If your application is denied, you have the right to appeal or reapply with more documentation. Many successful DTC claims are approved after a second submission or further explanation from the medical practitioner.
Disclaimer: This article is intended for general guidance only. Please consult a Canadian tax professional or the CRA for personalized advice on your tax situation.
