The Disability Tax Credit (DTC) is a non-refundable federal credit of $10,138 ($1,470 in actual tax savings) plus an Ontario credit of $10,298 ($520 in provincial savings). It's based on functional limitations, not specific diagnoses. Apply using Form T2201, certified by a medical practitioner. Unused credits can transfer to a supporting family member. You can claim retroactively for up to 10 prior years.
What Is the Disability Tax Credit?
The Disability Tax Credit (DTC) is a non-refundable federal income tax credit designed to help offset some of the extra costs faced by people with prolonged and severe physical or mental impairments. It can also be claimed by a supporting family member if the person with the disability cannot use it fully.
The DTC is the gateway to several other programs. Being approved for the DTC opens access to:
- The Registered Disability Savings Plan (RDSP)
- The Child Disability Benefit (a top-up to the Canada Child Benefit)
- The Working Income Tax Benefit Disability Supplement (now Canada Workers Benefit)
- Certain provincial disability programs and grants
For this reason, applying for the DTC — even if your personal tax savings are modest — can unlock substantial additional support.
How Much Is the DTC Worth in 2025?
| Credit Component | 2025 Amount | Tax Rate | Actual Tax Savings |
|---|---|---|---|
| Federal DTC (base) | $10,138 | 14.5% | $1,470 |
| Federal supplement (under 18) | up to $5,994 | 14.5% | up to $869 additional |
| Ontario DTC (base) | $10,298 | 5.05% | $520 |
| Ontario supplement (under 18) | up to $4,733 | 5.05% | up to $239 additional |
| Total (adult, Ontario) | — | — | ~$1,990 per year |
| Total (child, Ontario) | — | — | up to ~$3,098 per year |
Because the DTC is non-refundable, it can only reduce your federal and provincial income tax to zero — it cannot create a refund on its own. However, unused amounts can be transferred to a qualifying supporting person (spouse, parent, sibling, etc.) who does owe tax.
If the person with the disability has low income and pays little tax, the credit can be fully or partially transferred to a spouse or supporting family member who does pay tax. This is one of the most valuable but underused provisions of the DTC. Don't assume the credit is useless just because the person with the disability doesn't pay much tax.
Who Qualifies? The Functional Test
The DTC is not based on having a specific diagnosis. CRA assesses eligibility based on how severely a person's condition affects their ability to perform basic activities of daily living. The condition must be:
- Prolonged: It has lasted or is expected to last at least 12 continuous months
- Severe: It markedly restricts a basic activity of daily living all or substantially all of the time (at least 90% of the time)
The basic activities of daily living that CRA evaluates are:
- Vision — even with corrective lenses
- Speaking — communicating with another person in a language you know
- Hearing — with or without hearing aids
- Walking — on a level surface
- Eliminating (bowel or bladder)
- Feeding — preparing food and eating
- Dressing — putting on or taking off clothing
- Mental functions necessary for everyday life — memory, problem-solving, adaptive functioning, attention
There's also a cumulative effect rule: if a person has multiple impairments that don't individually meet the threshold but together require an inordinate amount of time to perform basic activities, they may still qualify.
Additionally, individuals who require life-sustaining therapy at least 3 times per week, averaging at least 14 hours per week (such as kidney dialysis or insulin therapy), may qualify under this separate criterion.
Common Conditions That May Qualify
While CRA's eligibility is based on functional impact rather than diagnosis, these conditions often meet the threshold:
- Autism spectrum disorder (ASD) — often via mental functions category
- Severe depression, bipolar disorder, or schizophrenia
- Multiple sclerosis, Parkinson's disease, ALS
- Severe diabetes requiring multiple daily insulin injections or pump therapy
- Cerebral palsy, spinal cord injuries, limb amputations
- Legal blindness or profound hearing loss
- Crohn's disease or severe IBD (via eliminating category)
- Severe ADHD or severe learning disabilities (via mental functions)
- Chronic kidney disease requiring dialysis
Many people assume they don't qualify because their condition "isn't serious enough" or "isn't the right type." This assumption is often wrong. The key question is: does your condition markedly restrict a basic activity of daily living, substantially all of the time? If a medical practitioner agrees, you may well qualify. Always fill out the T2201 and let CRA decide — there is no cost to apply.
How to Apply: The T2201 Process
The application form is the T2201 Disability Tax Credit Certificate. Here's how the process works:
- Download or access the T2201. It's available on the CRA website or through your medical practitioner. Since 2021, the form can be submitted digitally by medical practitioners through My Account or Represent a Client.
- Complete Part A yourself. You fill in your personal information and indicate whether you want to claim the credit yourself or transfer it to a supporting family member.
- Have a qualified medical practitioner complete Part B. They must certify the nature, severity, and expected duration of your impairment. Each type of impairment requires certification by a specific type of practitioner (see the table below).
- Submit the T2201 to CRA. You can submit it online via My Account, or mail it to your tax centre. You do not file the T2201 with your tax return — it's a separate administrative application.
- Wait for CRA's decision. CRA will send a notice of determination by mail, typically within 8 weeks (longer by mail). This determination letter specifies the period for which you are approved.
- Claim the credit on your tax return. Once approved, claim the DTC on line 31600 of your federal T1 return for each approved year. If you're transferring to a supporting person, that person claims it on line 31800.
| Type of Impairment | Who Can Certify |
|---|---|
| All categories | Medical doctor (MD) |
| All categories (most) | Nurse practitioner |
| Vision | Optometrist or MD |
| Speaking | Speech-language pathologist or MD |
| Hearing | Audiologist or MD |
| Walking | Physiotherapist, occupational therapist, or MD |
| Feeding / Dressing | Occupational therapist or MD |
| Mental functions | Psychologist or MD |
| Life-sustaining therapy | MD or nurse practitioner |
Retroactive Claims: Getting Back What You Missed
If CRA approves your T2201 for a period covering previous tax years, you can recover the DTC credits for those years. Here's how:
- File a T1-ADJ (T1 Adjustment Request) for each prior year you want to amend, going back up to 10 years.
- Reference the line numbers on your T1 return where the DTC would have been claimed (lines 31600 and/or 31800).
- CRA will reassess each year and issue a refund for the additional credits, plus compound interest at the prescribed rate.
For an adult with a long-standing qualifying condition, a 10-year retroactive claim could generate a lump-sum refund of $20,000 or more in federal and Ontario tax savings, plus interest. This is one of the highest-value tax recoveries available to Canadians.
Some companies offer to help you apply for the DTC in exchange for a percentage of your refund — sometimes 20-30% of the retroactive amount. There is no legal requirement to use such services. The T2201 application is free, and any accountant, lawyer, or tax professional you might hire is subject to CRA rules limiting contingency fees on tax refunds to a reasonable amount. Apply directly through CRA's My Account to avoid unnecessary fees.
The Child Disability Benefit (CDB)
Parents of children approved for the DTC may receive the Child Disability Benefit, a tax-free supplement added to the Canada Child Benefit (CCB). For 2025, the CDB provides up to $3,411 per year (paid monthly) for each child who qualifies for the DTC.
The CDB is income-tested and phases out at higher family net incomes — it fully phases out around $70,000–$80,000 of net family income depending on family size. However, for families with lower to moderate incomes, the CDB combined with the DTC can represent significant annual support.
Transferring the DTC to a Supporting Person
If the person with a disability cannot use all of the DTC (because they don't have enough federal or Ontario tax), the unused portion can be transferred to a person who supports them. Eligible supporting persons include:
- Spouse or common-law partner
- Parent or grandparent
- Child or grandchild
- Sibling, aunt, uncle, nephew, or niece
The supporting person must be supporting the individual with the disability (financially or otherwise) in the tax year. The amount that can be transferred is limited to the unused portion of the DTC — you cannot claim the same DTC credit twice between two people.
The DTC and the Registered Disability Savings Plan (RDSP)
Perhaps the biggest long-term value of the DTC is that it unlocks the RDSP. The RDSP is a government-matched savings plan for people with disabilities. The government contributes Canada Disability Savings Grants (up to $3,500 per year on contributions, up to $70,000 total) and Canada Disability Savings Bonds (up to $1,000 per year with no contribution required, up to $20,000 total) based on family income.
You cannot open or contribute to an RDSP without a valid DTC approval. If you or a family member has a qualifying disability and hasn't applied for the DTC, the RDSP grants and bonds you've missed represent a significant opportunity cost — potentially tens of thousands of dollars in government money that was never received.
See how the DTC affects your 2025 Ontario tax bill
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Frequently Asked Questions
How much is the Disability Tax Credit worth in 2025?
The federal DTC amount for 2025 is $10,138, which translates to a non-refundable tax credit of approximately $1,470 (14.5% × $10,138). Ontario's provincial DTC amount is $10,298, worth about $520 in provincial tax savings (5.05% × $10,298). Combined, an eligible Ontario resident can reduce their tax by roughly $1,990 per year. Children under 18 receive an additional supplemental amount, bringing total potential savings to approximately $3,098 annually.
Can I claim the DTC for a family member who doesn't pay tax?
Yes. If the person with the disability has little or no income tax owing, the unused portion of the DTC can be transferred to a supporting family member — a spouse, common-law partner, parent, grandparent, child, grandchild, sibling, aunt, uncle, nephew, or niece. The supporting person must have supported the individual with the disability during the tax year. The transfer is claimed on line 31800 of the supporting person's T1 return.
What conditions qualify for the Disability Tax Credit?
The DTC is based on functional limitations, not diagnoses. A person qualifies if they have a severe and prolonged impairment (lasting at least 12 months) in one of CRA's basic activities of daily living — vision, walking, speaking, hearing, feeding, dressing, eliminating, or mental functions necessary for everyday life — and that impairment markedly restricts the activity substantially all of the time (90%+). People requiring life-sustaining therapy averaging 14+ hours per week also qualify. Common qualifying conditions include severe autism, diabetes requiring intensive insulin therapy, dialysis, blindness, severe mental illness, and many others.
Can I apply for the DTC retroactively?
Yes. If CRA approves your T2201 for a past period, you can file T1-ADJ adjustment requests for up to 10 previous tax years to recover DTC credits for all those years. CRA will reassess your returns and issue refunds with interest. For a long-standing qualifying condition, a 10-year retroactive claim could generate $20,000 or more in federal and Ontario refunds combined.
Who can certify a T2201 form?
It depends on the type of impairment. Medical doctors (MDs) can certify all categories. Nurse practitioners can certify most categories. For specific impairments: physiotherapists certify walking; psychologists certify mental functions; optometrists certify vision; audiologists certify hearing; speech-language pathologists certify speaking; and occupational therapists certify feeding, dressing, and walking. Using a specialist relevant to the impairment is often more effective than relying solely on a GP who may be less familiar with the DTC criteria.