What is the Disability Tax Credit?
The Disability Tax Credit (DTC) is a non-refundable federal and provincial tax credit that reduces the income tax owed by persons with severe and prolonged impairments in physical or mental functions. It is administered by the Canada Revenue Agency (CRA) and requires approval through Form T2201.
A non-refundable credit means the DTC can only reduce your tax payable to zero. It cannot generate a refund on its own. If the person with the disability does not have enough tax payable to use the full credit, the unused portion can be transferred to a supporting family member.
The DTC is one of the most valuable tax credits available to Canadians with disabilities. For 2025, the combined federal and provincial credit for an adult in Ontario is approximately $2,003 per year. For a child under 18, the amount is higher due to the federal supplement.
Who is eligible for the DTC?
To qualify for the DTC, the CRA requires that a medical practitioner certify on Form T2201 that you have a severe and prolonged impairment in one or more basic activities of daily living. The impairment must have lasted, or be expected to last, for a continuous period of at least 12 months.
The CRA evaluates eligibility based on the effects of the impairment, not the medical diagnosis. Basic activities of daily living include: speaking, hearing, walking, elimination (bowel or bladder functions), feeding, dressing, and performing mental functions necessary for everyday life.
You may also qualify if you need life-sustaining therapy at least three times per week, averaging a total of at least 14 hours per week (including travel time to receive the therapy). Alternatively, you may qualify under the cumulative effect of significant limitations in two or more activities.
Common medical conditions that may qualify include (but are not limited to): type 1 diabetes requiring insulin therapy, blindness or severe vision impairment, deafness or severe hearing loss, autism spectrum disorder, ADHD (severe cases), cerebral palsy, multiple sclerosis, Crohn's disease, mental health conditions such as major depressive disorder or bipolar disorder, mobility impairments requiring a wheelchair, and chronic kidney failure requiring dialysis.
- ✓Severe and prolonged impairment lasting 12+ months
- ✓Markedly restricted in one or more basic activities of daily living
- ✓Life-sustaining therapy at least 3 times per week (14+ hours total)
- ✓Cumulative effect of significant limitations in 2+ activities
- ✓Medical practitioner must certify on Form T2201
How is the DTC calculated?
The DTC is calculated by multiplying the disability amount by the lowest tax rate for the jurisdiction. The federal credit uses the federal disability amount and the federal lowest rate (15%). Each province and territory has its own disability amount and lowest rate.
For 2025, the federal disability base amount is $9,872. The federal credit is $9,872 x 15% = $1,480.80. For persons under 18, an additional supplement of $5,758 is added to the base, making the total federal amount $15,630 and the federal credit $2,344.50.
The provincial portion varies significantly. Alberta has the highest provincial disability amount at $17,219 with a 10% rate, producing a provincial credit of $1,721.90. Ontario uses a $10,341 amount at 5.05%, yielding $522.22. Quebec has a distinct system with a $3,722 base at 14%, yielding $521.08.
Your total annual DTC is the sum of the federal and provincial credits. The combined credit for an adult ranges from approximately $1,800 in some provinces to over $3,200 in Alberta.
DTC amounts by province and territory (2025)
Provincial and territorial disability amounts and tax rates vary considerably across Canada. The table below shows the disability base amount, the lowest provincial tax rate, and the resulting provincial tax credit for each jurisdiction.
| Province/Territory | Disability Amount | Lowest Rate | Provincial Credit | Combined (Federal + Provincial) |
|---|---|---|---|---|
| Alberta | $17,219 | 10.00% | $1,722 | $3,203 |
| British Columbia | $9,738 | 5.06% | $493 | $1,974 |
| Manitoba | $7,890 | 10.80% | $852 | $2,333 |
| New Brunswick | $9,551 | 9.40% | $898 | $2,379 |
| Newfoundland & Labrador | $7,467 | 8.70% | $650 | $2,131 |
| Nova Scotia | $8,662 | 8.79% | $761 | $2,242 |
| Northwest Territories | $14,469 | 5.90% | $854 | $2,335 |
| Nunavut | $16,405 | 4.00% | $656 | $2,137 |
| Ontario | $10,341 | 5.05% | $522 | $2,003 |
| Prince Edward Island | $7,708 | 9.65% | $744 | $2,225 |
| Quebec | $3,722 | 14.00% | $521 | $2,002 |
| Saskatchewan | $11,344 | 10.50% | $1,191 | $2,672 |
| Yukon | $10,138 | 6.40% | $649 | $2,130 |
How to apply: Form T2201
To claim the DTC, you must submit Form T2201 (Disability Tax Credit Certificate) to the CRA. The form has two parts: Part A is completed by the person with the disability (or their legal representative), and Part B is completed and signed by a qualified medical practitioner.
Qualified medical practitioners include: medical doctors, optometrists, audiologists, occupational therapists, psychologists, and speech-language pathologists. The type of practitioner depends on the nature of your impairment.
After submitting Form T2201, the CRA reviews the application and sends a Notice of Determination. Processing typically takes 8 to 12 weeks. If approved, the CRA specifies the period of eligibility. If denied, you have the right to request a review or file a formal objection.
There is no fee charged by the CRA for processing the T2201. However, some medical practitioners may charge a fee for completing Part B of the form. This fee is not regulated and varies by practitioner.
Retroactive DTC claims: up to 10 years
If you are newly approved for the DTC, you can request the CRA to adjust your previous tax returns for up to 10 years. This is one of the most valuable aspects of the DTC because it can result in a significant lump-sum refund.
To claim retroactively, check the box in Part A of Form T2201 that authorizes the CRA to adjust your prior returns. The CRA will automatically reassess the eligible years and issue refunds for any additional credits owed.
For example, an adult in Ontario approved for 10 retroactive years could receive approximately $20,030 in total credits ($2,003 per year x 10 years). The actual amount varies slightly because disability amounts are indexed to inflation and change each year.
The CRA processes retroactive claims after approving the T2201. Refunds are typically issued within 8 to 12 weeks of the reassessment. Interest on overpayments may also be paid back to you.
Transferring the DTC to a supporting person
Because the DTC is non-refundable, it can only reduce tax payable to zero. If the person with the disability has little or no taxable income, they cannot use the full credit. In this case, the unused portion can be transferred to a supporting person.
A supporting person can be a spouse or common-law partner, a parent, grandparent, child, grandchild, brother, sister, aunt, uncle, niece, or nephew. The supporting person must have claimed one of the following amounts for the person with the disability: the spouse or common-law partner amount, the Canada caregiver amount, or the eligible dependant amount.
The transfer is claimed on the supporting person's tax return (line 31800 for a dependant, or line 32600 for a spouse or common-law partner). Only one person can claim the transferred amount for a given tax year.
If the person with the disability is a child, the DTC is typically transferred to the parent or guardian who claims the child as a dependant. For married or common-law couples, the credit is usually transferred to the higher-income spouse to maximize the tax benefit.
Worked example: calculating your DTC
Maria is a 35-year-old adult living in Ontario who was recently approved for the DTC for the 2025 tax year. She earns $55,000 per year. She wants to claim retroactively for 5 years.
Federal credit: $9,872 (base amount) x 15% = $1,480.80 per year. Provincial credit: $10,341 (Ontario amount) x 5.05% = $522.22 per year. Total annual credit: $1,480.80 + $522.22 = $2,003.02 per year.
Retroactive total: $2,003.02 x 5 years = $10,015.10. Maria can expect a lump-sum refund of approximately $10,015 from the CRA after her prior returns are reassessed.
Since Maria's income ($55,000) is well above the basic personal amount, she has enough tax payable to use the full credit herself. She does not need to transfer the DTC to a supporting person.
Frequently asked questions
How much is the Disability Tax Credit worth in 2025?
For 2025, the federal DTC base amount is $9,872, which produces a federal credit of $1,480.80 (at the 15% lowest rate). The provincial credit varies by province. The total combined credit for an adult ranges from approximately $2,000 in Ontario/Quebec to over $3,200 in Alberta. For children under 18, an additional federal supplement of $5,758 applies.
Can I claim the DTC retroactively?
Yes. If you are newly approved for the DTC, you can request the CRA to adjust your tax returns for up to 10 prior years. Check the authorization box in Part A of Form T2201. The CRA will reassess your previous returns and issue refunds for the additional credits. A 10-year retroactive claim for an adult in Ontario could be worth approximately $20,000.
What is Form T2201?
Form T2201 (Disability Tax Credit Certificate) is the application form for the DTC. Part A is filled out by the person with the disability, and Part B must be completed and signed by a qualified medical practitioner (doctor, psychologist, occupational therapist, etc.). The form is submitted to the CRA, which reviews it and sends a Notice of Determination.
Can I transfer the DTC to my spouse or parent?
Yes. Because the DTC is non-refundable, unused credit can be transferred to a supporting person such as a spouse, common-law partner, parent, or other eligible family member. The supporting person must have claimed a dependant amount for you on their return. Only one person can claim the transferred credit per tax year.
Does the DTC give me a direct payment?
No. The DTC is a non-refundable tax credit that reduces your tax payable. It does not produce a direct cash payment. However, being approved for the DTC may qualify you for other programs that do provide direct payments, such as the Canada Disability Benefit ($2,400/year), the Child Disability Benefit, and the RDSP.
What conditions qualify for the DTC?
The CRA evaluates eligibility based on functional limitations, not specific diagnoses. Common qualifying conditions include type 1 diabetes, blindness, deafness, autism, cerebral palsy, multiple sclerosis, Crohn's disease, severe ADHD, major depression, mobility impairments, and chronic kidney failure requiring dialysis. The key criterion is a severe and prolonged impairment lasting 12+ months that markedly restricts a basic activity of daily living.
How long does it take to get approved for the DTC?
The CRA typically processes Form T2201 within 8 to 12 weeks. After approval, retroactive reassessments and refunds may take an additional 8 to 12 weeks. You can check the status of your application through your CRA My Account online.
Is there a fee to apply for the DTC?
The CRA does not charge any fee to process Form T2201. However, some medical practitioners charge a fee for completing Part B of the form. This fee varies and is not regulated. You should ask your practitioner about fees before scheduling an appointment.
What is the difference between the DTC and the Canada Disability Benefit?
The DTC is a tax credit that reduces your income tax. The Canada Disability Benefit (CDB) is a separate income support program that provides up to $2,400 per year in direct payments to working-age Canadians (18-64) with low income who are approved for the DTC. The CDB began in July 2025. You must be approved for the DTC to receive the CDB.
Can I claim the DTC for my child?
Yes. If your child under 18 has a severe and prolonged impairment certified on Form T2201, they qualify for the DTC including the additional supplement of $5,758 (2025). Since children typically have no taxable income, the credit is transferred to the parent or guardian who claims the child as a dependant.