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DTC: Disability Tax Credit

The DTC is a non-refundable federal tax credit for individuals with severe and prolonged impairments. The 2026 federal base amount is $10,138, generating $1,521 in federal tax reduction.

The Disability Tax Credit (DTC) is a non-refundable federal tax credit for individuals with severe and prolonged impairments in physical or mental functions. For 2026, the federal base amount is $10,138, generating a federal tax credit of $1,521 ($10,138 × 15%). Children under 18 can claim an additional supplement up to $5,914.

Application

Apply using Form T2201 (Disability Tax Credit Certificate). Part A is completed by the applicant; Part B by a qualified medical practitioner. Submit to CRA, which reviews and issues a determination valid for 5 to 10 years (then renewable).

Benefits unlocked by DTC approval

  • Registered Disability Savings Plan (RDSP)
  • Child Disability Benefit ($3,411/year supplement to CCB for July 2025-June 2026)
  • Canada Workers Benefit disability supplement
  • Expanded medical expense credit eligibility
  • Flexible Home Buyers’ Plan rules for related disabled person

Transferring unused DTC

If the person with the disability has insufficient taxable income, the unused DTC can be transferred to a supporting family member on line 31800 of the supporter’s T1.