The Disability Tax Credit (DTC) is a non-refundable federal tax credit for Canadians with severe and prolonged impairments in physical or mental functions. Eligibility requires certification by a qualified medical practitioner on Form T2201. The DTC reduces federal tax by $1,521 (2026) and may be transferred to a supporting family member if the person with the disability has insufficient tax to use the full credit. Approval of Form T2201 also unlocks eligibility for the Registered Disability Savings Plan (RDSP), the Child Disability Benefit (CDB), and the Canada Caregiver Credit.
How much is the disability tax credit in 2025?
The federal DTC amount for 2026 is $10,138. At the federal non-refundable credit rate of 15%, this produces a federal tax reduction of $1,520.70. An additional supplement for persons under 18 is $5,758 (15% credit = $863.70), available when neither a child care nor an attendant care expense has been claimed for the child. The combined federal credit for a child under 18 is $2,344.50. Provincial DTC amounts vary: Ontario provides a provincial credit of $1,584 at 8.05%, yielding $127.51; other provinces use similar credit structures at their lowest provincial rates.
How DTC eligibility is determined
Qualifying impairments
Form T2201 identifies eight categories of impairment, any one of which can qualify an individual for the DTC. The categories are: vision; speaking; hearing; walking; eliminating (bowel or bladder function); feeding; dressing; and mental functions necessary for everyday life. The impairment must be severe (the individual is unable to perform the basic activity of daily living or requires an inordinate amount of time) and prolonged (the impairment has lasted or is expected to last at least 12 continuous months). Cumulative effects of two or more moderate impairments may also qualify under the “cumulative effect of significant restrictions” provision, which CRA introduced in 2004.
Qualified medical practitioners
The type of practitioner who can certify a DTC claim depends on the category of impairment. Vision impairments must be certified by a medical doctor or optometrist. Hearing impairments by a medical doctor or audiologist. Mental function impairments by a medical doctor or psychologist. Walking, feeding, and dressing impairments can be certified by medical doctors, occupational therapists, or physiotherapists (walking). The full list of qualifying practitioners for each category is provided in CRA’s T2201 guide. Only one practitioner is required; they do not need to be a specialist, though a specialist’s opinion strengthens a borderline application.
T2201 application process
The applicant or supporting family member completes Part A of Form T2201 and takes it to the qualified practitioner to complete Part B. The completed form is submitted to CRA (by mail or through My Account). CRA adjudicates the application and issues either an approval (with a validity period, typically indefinite or 10 years for static conditions, or a shorter period for variable conditions) or a denial with reasons. Approvals must be renewed when the validity period expires; denials may be objected to through the T400A Notice of Objection or appealed to the Tax Court of Canada if the objection is unsuccessful.
Verified against source
The 2026 federal DTC base amount of $10,138 is confirmed from the CRA chart of indexed amounts. The supplement for persons under 18 of $5,758 is confirmed from the same source. Qualifying impairment categories and practitioner types are confirmed from Guide RC4064 (Disability-Related Information) and Form T2201 Part B. Transfer rules are confirmed from the Income Tax Act s.118.3(2). These values were verified in April 2026.
DTC transfer to a supporting person
If the person with the disability does not have enough federal tax to use the full DTC, the unused amount can be transferred to a spouse or common-law partner, or to another supporting person (parent, grandparent, child, grandchild, sibling, aunt, uncle, niece, or nephew). The transfer requires that the supporting person has claimed at least $2,350 of support payments for the person with the disability (directly or indirectly) during the year, and that the person with the disability lived with the supporting person or the supporting person contributed at least $2,350 to their support. The transferred DTC reduces the supporting person’s federal tax by up to $1,520.70.
RDSP eligibility — the most valuable DTC benefit
An approved DTC is the gateway to the Registered Disability Savings Plan (RDSP). The RDSP provides two government benefits: the Canada Disability Savings Grant (CDSG), which matches contributions at 100% to 300% depending on family income up to a lifetime maximum of $70,000; and the Canada Disability Savings Bond (CDSB), which deposits up to $1,000 per year automatically for low-income RDSP holders with no contribution required, up to a lifetime maximum of $20,000. The RDSP’s government contributions are significantly larger than any other government-assisted registered plan. For families with a newly DTC-approved member, opening an RDSP promptly (before age 49 to maximise grant eligibility) is often the most financially significant action available.
Edge cases and planning considerations
Retroactive DTC claims
DTC claims can be made retroactively for up to 10 years through a T1-ADJ (adjustment request) for each prior year where the individual was eligible. A successful retroactive claim generates federal and provincial tax refunds for each eligible year. Retroactive claims for a person who has died can be made by the estate for any open tax years. The limitation period for a T1-ADJ is generally 10 years from the date of the original assessment.
Interaction with attendant care expenses
DTC recipients may also claim attendant care expenses on line 21400 of the T1, but the DTC amount that can be claimed is reduced when attendant care exceeds $2,350. Specifically, the DTC supplement for children under 18 cannot be claimed if a child care expense or attendant care expense was claimed for that child. For adults, claiming attendant care expenses above $2,350 for a full-time attendant or nursing home care results in a reduced DTC. CRA’s Guide T4130 (Employers’ Guide — Taxable Benefits and Allowances) and T1 guide explain the interaction in detail.
Episodic disabilities
Conditions that are episodic — recurring but not constant — may qualify for the DTC if the impairment is present more than 90% of the time or if the cumulative time spent managing symptoms across the year is more than 14 hours per week. Multiple Sclerosis, Crohn’s disease, and similar conditions that cause unpredictable severity cycles may qualify under the cumulative effects provision. The medical practitioner must describe the pattern and frequency on Form T2201.