Canada’s Disability Tax Credit (DTC) provides much needed financial relief to those eligible, as well as their families, for the financial duties that come with disabilities. Tax benefits are offered to the disabled persons with severe and prolonged impairments as a means to the societal support and inclusion. This overview describes the payment amount, rules for qualification, claiming the credit, and a summary with response to the most common questions to provide you with the essential information.
Amounts and Overview
In the 2025 tax year, the DTC states the maximum non-refundable tax credit to be $9,872 for adults with a qualifying disability. For minors, the amount increases to $15,630, as well as an additional child supplement of $5,758. This amount is still not a payment per se, but will decrease the amount of federal tax owed, resulting in high savings over the year. The person with the disability can transfer unused credits as a whole to a supporting family member, and this can be done to maximize the tax relief.
Who is Eligible for the Disability Tax Credit?
Those looking to apply for the DTC must be able to show evidence of a severe and prolonged impairment which must be for a duration of 12 months. A medical professional will have to complete the necessary DTC-qualifying forms. One of these forms will include the impairment listing under the DTC (e.g. walking, hearing, mental, feeding, vision, dressing, speaking, or life-sustaining therapy). This includes permanent and severe disabilities of both a physical and mental nature, as long as the condition substantially restricts one or more of the basic daily activities.
Rules and Family Supporting Claimants
Anyone can apply for the DTC on their own behalf, or for a qualifying dependent relative, assuming the impairment is accompanied by the medical and residency requirements. The claimant can also give any unused portion of the DTC to a disability’s spouse or other relatives of the claimant who provide the necessary basic needs. The CRA also permits a reassessment of claims for the prior 10 years, therefore allowing families to recover DTC portions that were not claimed.
The Claim Process and Documentation
To apply for the DTC, one needs to fill out Form T2201, the Disability Tax Credit Certificate, and have it signed by a medical professional. If that gets approved, the taxpayer will have to claim the credit on their income tax return on the lines for themselves, a dependent, or a transferred claim (Lines 31600, 31800, or 32600). To get it processed quickly, it recommended for them to file it electronically, and if the taxpayer was charged to get the medical certification, a refund is payable for the claim. It usually takes a few weeks to process the application, and must be done before the tax deadline.
Benefits Beyond Tax Relief
In addition to lowering the federal tax payable, DTC approval can provide other benefits like the Child Disability Benefit and eligibility for the Registered Disability Savings Plan (RDSP). Families should explore all support programs to provide additional assistance throughout the year.
Short Table: Key DTC Data
| Category | 2025 DTC Maximum |
|---|---|
| Adults (18+) | $9,872 |
| Children (<18) | $15,630 |
| Extra Child Supplement | $5,758 |
Frequently Asked Questions
1. Is the DTC a direct payment?
The DTC is non-refundable GST credit which decreases income tax payable on to the federal government.
2. Can one claim for the previous years?
Yes, if the credit was not claimed for the previous years, a claim can be made for retroactive purposes for 10 years if it was eligible for that time.
3. Is it possible for a family member to claim the credit?
Yes, the unused amounts of the DTC can be transferred to close relatives who care for and provide primary support to the person with a disability.
