The Canada Disability Tax Credit (DTC) is a non-refundable federal tax credit that reduces income tax for Canadians with severe and prolonged physical or mental impairments. For 2026, the base DTC is worth up to $1,481 in federal tax savings (15% × the $9,872 disability amount). The credit can also be transferred to a supporting family member if the person with a disability does not need it — making it a valuable household tax reduction tool.
Quick answer: To claim the DTC, your condition must be certified by a medical practitioner on Form T2201, which must be approved by the CRA before you can use the credit. Once approved, the credit applies to the current tax year and future years (depending on the approval period).
DTC Amounts 2026
| Credit Component | 2026 Federal Disability Amount | Tax Credit Value (15%) |
|---|---|---|
| Base disability amount (all ages) | $9,872 | $1,481 |
| Supplement for children under 18 | $5,758 | $864 |
| Maximum credit for a child under 18 | $15,630 | $2,345 |
Provincial DTC amounts vary. For example, Ontario’s provincial disability amount adds additional provincial tax savings.
Note: The supplement for children under 18 is reduced if certain childcare or attendant care expenses have been claimed for that child.
Who Qualifies for the DTC?
The CRA assesses DTC eligibility based on whether you have a severe and prolonged impairment that markedly restricts your ability to perform a basic activity of daily living. The condition must:
- Be severe (markedly restricted, or require an inordinate amount of time to perform)
- Be prolonged (has lasted, or is expected to last, at least 12 consecutive months)
Basic Activities of Daily Living (BADLs)
- Speaking — inability to communicate in any language
- Hearing — inability to understand spoken conversation
- Walking — inability to walk on level ground
- Eliminating (bowel/bladder) — requires significant assistance
- Feeding — inability to feed oneself
- Dressing — inability to put on/remove clothing without help
- Mental functions — memory, problem-solving, adaptive functioning needed for everyday life
The CRA also recognises “cumulative effect of significant limitations” — if you have several restrictions that together are equivalent to a marked restriction, you may still qualify.
Conditions That Often Qualify
- Blindness or severe vision impairment (despite corrective lenses)
- Deafness or severe hearing loss
- Autism spectrum disorder
- Severe intellectual disability
- Chronic and severe depression or anxiety
- Multiple sclerosis, ALS, severe arthritis
- Severe cardiac or pulmonary conditions
- Insulin-dependent Type 1 diabetes (following a 2021 policy change)
The condition does NOT need to be permanent — the 12-month duration requirement is the key test.
How to Apply for the DTC
Step 1: Download Form T2201
Get the most current Form T2201 from the CRA website. It has two parts:
- Part A: Completed by you (name, SIN, type of impairment, years applicable)
- Part B: Completed by a qualified medical practitioner who certifies the severity and duration of your impairment
Step 2: Identify the Right Medical Practitioner
Depending on the type of impairment, the certifying practitioner must be:
| Impairment Type | Who Can Certify |
|---|---|
| All impairments | Medical doctor (MD) |
| Vision | Ophthalmologist, optometrist |
| Hearing | Audiologist |
| Speech | Speech-language pathologist |
| Walking/dressing | Physiotherapist, occupational therapist |
| Mental functions | Psychologist, MD, nurse practitioner |
| Feeding/eliminating | MD, nurse practitioner |
Step 3: Submit to the CRA
Submit Form T2201 either:
- Online: Through CRA My Account (recommended — faster processing)
- By mail: To your regional tax centre
Processing typically takes 8–10 weeks, though complex cases may take longer. You can check status through CRA My Account.
Step 4: CRA Decision
The CRA will send an approval letter specifying the years the credit applies (e.g., “approved from 2020 to 2030”). Once approved, you can claim the credit on your annual T1 return without re-submitting the form (until the approval period ends).
How to Claim the DTC on Your Tax Return
Once approved:
- Complete Schedule 1 (Federal Tax) of your T1 return
- Enter the base disability amount ($9,872) on the appropriate line
- For the child supplement, report on the same schedule
- If transferring to a family member, the family member claims the unused amount on their own Schedule 1
Tax software (TurboTax Canada, SimpleTax, H&R Block Canada) handles this automatically once you indicate DTC approval is on file.
Transferring the DTC to a Supporting Family Member
If the person with a disability cannot use the full credit (insufficient income), the unused amount is transferred to a supporting person. To calculate the transferable amount:
- Calculate how much DTC the person with a disability can use (based on their own tax payable)
- Transfer the remainder to the supporting family member’s return
The supporting person must be:
- Dependent on the person with a disability
- Financially supporting the person with a disability during the year
Example: Maria’s 10-year-old daughter, Emma, has been approved for the DTC with the child supplement. Emma has no income. Maria can claim the full $2,345 federal DTC on her own return, reducing her federal tax by $2,345.
DTC and Other Benefits and Programs
The DTC unlocks access to several other federal programs:
| Benefit | Requires DTC |
|---|---|
| Canada Workers Benefit — Disability Supplement | Yes |
| Registered Disability Savings Plan (RDSP) | Yes |
| Child Disability Benefit (CDB) — added to CCB | Yes |
| Henson Trust (provincial) | Related but separate |
Registered Disability Savings Plan (RDSP)
Once you have DTC approval, you can open an RDSP — a tax-sheltered savings plan with generous government matching:
- Canada Disability Savings Grant (CDSG): Up to $3,500/year in government grants (income-tested)
- Canada Disability Savings Bond (CDSB): Up to $1,000/year for lower-income households with no personal contribution required
What to Do If Your DTC Application Is Denied
If the CRA denies your application, you can:
- Request a second review by providing additional medical evidence
- File a Notice of Objection within 90 days of the decision
- Appeal to the Tax Court of Canada if the objection is unsuccessful
Many successful DTC claims are approved on second review or appeal, particularly for mental health conditions and cumulative impairments. Consider using a DTC consultant or disability advocate to help prepare the application.
Related Canadian Tax and Benefits Resources
- Canada Workers Benefit 2026 — working income credit with disability supplement
- GST/HST Credit 2026 — quarterly benefit; DTC recipients may receive higher amounts
- RRSP Contribution Limits 2026 — tax-deferred savings for people with disabilities
- Canadian Government Benefits Guide — full benefits overview
- CA Taxes Hub — all Canadian tax guides
The Disability Tax Credit requires effort to obtain — particularly the medical certification — but the tax savings are substantial and ongoing. If you or a family member live with a chronic condition, it is worth consulting your doctor about completing Form T2201.
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