The Disability Tax Credit (DTC) is a non-refundable federal tax credit for individuals with severe and prolonged impairments in physical or mental functions. The 2026 federal DTC base amount is $10,138, producing a federal tax reduction of approximately $1,521 ($10,138 multiplied by the 15% lowest federal tax rate). An additional supplement of up to $5,914 is available for taxpayers under 18 with a disability. The DTC unlocks eligibility for the Registered Disability Savings Plan (RDSP) and the Child Disability Benefit.
2026 DTC amounts
| Component | Amount (2026) | Federal tax reduction at 15% |
|---|---|---|
| Federal base disability amount | $10,138 | $1,521 |
| Supplement for under 18 | $5,914 (subject to phase-out) | $887 |
| Maximum federal credit (adult) | $10,138 | $1,521 |
| Maximum federal credit (child under 18) | $16,052 | $2,408 |
Provincial and territorial DTC amounts are added to the federal credit. Combined federal and provincial DTC for an adult is typically $2,500 to $3,500 in tax reduction, depending on the province.
Who qualifies for the DTC
To qualify, an individual must have a severe and prolonged impairment in physical or mental functions. “Severe” means the impairment is markedly restricted in at least one basic activity of daily living, or significantly restricted in two or more activities. “Prolonged” means the impairment has lasted, or is expected to last, for a continuous period of at least 12 months.
Basic activities of daily living for DTC purposes include speaking, hearing, walking, eliminating (bowel or bladder functions), feeding, dressing, and mental functions necessary for everyday life. The impairment must restrict the activity all or substantially all the time (90% or more), even with appropriate therapy, devices, and medication.
How to apply
Application uses Form T2201 (Disability Tax Credit Certificate). Part A is completed by the applicant and Part B is completed by a medical practitioner (doctor, nurse practitioner, optometrist, audiologist, occupational therapist, physiotherapist, psychologist, or speech-language pathologist, depending on the impairment type). Form T2201 is submitted to CRA, which reviews and issues a determination letter.
If approved, CRA reassesses the applicant’s tax returns for the years the impairment was present (up to 10 years retroactively), generating refunds for unclaimed prior-year DTC. Approval is typically granted for a fixed period (5 to 10 years) and must be renewed at the end of the period using a new T2201.
Transferring the DTC to a supporting family member
If the person with the disability does not have enough taxable income to use the full DTC, the unused portion can be transferred to a supporting family member. Eligible supporting family members include a spouse or common-law partner, parent, grandparent, child, grandchild, brother, sister, aunt, uncle, niece, or nephew of the person with the disability, provided the supporter provides regular and consistent support for basic necessities.
The transfer is claimed on the supporting family member’s T1 return, line 31800. The full unused DTC is transferred; partial transfers are not allowed. Only one supporting family member can claim the transferred DTC for a given year.
Related benefits unlocked by DTC approval
| Benefit | What it provides |
|---|---|
| Registered Disability Savings Plan (RDSP) | Tax-deferred savings with up to $1,000/year Canada Disability Savings Bond and up to $3,500/year Canada Disability Savings Grant matching |
| Child Disability Benefit | $3,411/year additional CCB payment for each child under 18 with DTC approval |
| Working Income Tax Benefit (CWB) disability supplement | Additional CWB amount for low-income workers with DTC approval |
| Medical Expense Tax Credit additional eligibility | Wider range of expenses qualifies once DTC is approved (attendant care, etc.) |
| Home Buyers’ Plan flexibility | HBP withdrawal allowed without first-time home buyer status if home purchase is for a related disabled person |
What if the application is denied
If CRA denies the DTC application, the applicant can request a reconsideration with new medical information, file a Notice of Objection with CRA Appeals, or appeal to the Tax Court of Canada. Many denials succeed on appeal when additional or clarifying medical information is provided. Working with a doctor experienced in DTC certifications often improves approval rates on initial application.
Frequently asked questions
- What is the 2026 DTC amount?
- Federal base of $10,138, generating $1,521 of federal tax reduction. The under-18 supplement adds up to $5,914 (worth $887 more).
- Who qualifies?
- An individual with a severe and prolonged impairment that markedly restricts at least one basic activity of daily living (or significantly restricts two), 90%+ of the time, for at least 12 months.
- How do I apply?
- Form T2201. Part A by the applicant, Part B by a medical practitioner. Submit to CRA for determination. Approval typically covers 5 to 10 years.
- Can DTC transfer to a family member?
- Yes, if the person with the disability has insufficient taxable income. Transferred to a supporting spouse, parent, child, sibling, etc. on line 31800.
- What benefits does DTC unlock?
- RDSP, Child Disability Benefit, CWB disability supplement, expanded medical expense credit eligibility, and flexible HBP rules.
- Is DTC retroactive?
- Yes. CRA reassesses up to 10 prior years automatically when DTC is approved, generating refunds for any unclaimed prior-year credit.
- What if my application is denied?
- Request a reconsideration with new medical information, file a Notice of Objection with CRA Appeals, or appeal to the Tax Court of Canada.