The Disability Tax Credit (DTC) is a non-refundable tax credit designed to reduce the income tax burden for individuals with disabilities and their supporting family members. Administered by the Canada Revenue Agency (CRA), this credit helps offset extra living costs associated with disabilities. If you are a parent of a child with a disability, you may also be eligible for the Child Disability Benefit (CDB), a tax-free monthly supplement.
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Who Qualifies for the Disability Tax Credit?
Not everyone with a disability automatically qualifies for the DTC. Eligibility is determined by the severity and duration of the impairment. To qualify, an individual must have a significant and prolonged physical or mental disability that restricts their daily activities. While other disability benefits (such as CPP Disability) may apply to you, that does not necessarily guarantee DTC eligibility.
Common Medical Conditions That May Qualify
The following conditions have been commonly recognized by the CRA for DTC approval:
- Physical Conditions: Multiple Sclerosis, Parkinson’s Disease, Crohn’s Disease, Cerebral Palsy, Epilepsy, Stroke, Colitis, Blindness, and Hearing Disorders.
- Mental and Neurological Disorders: Autism, Schizophrenia, PTSD, Bipolar Disorder, Depression, Dementia, Psychosis, and Borderline Personality Disorder.
- Cognitive and Learning Disabilities: ADHD, Dyslexia, Fetal Alcohol Syndrome, and severe Learning Disabilities.
While this list is not exhaustive, individuals with conditions that severely impact daily living should work with their healthcare provider to determine eligibility.
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Disability Tax Credit Amounts (By Province)
The DTC consists of federal and provincial amounts. The federal amount remains consistent nationwide, while the provincial portion varies by region.
Federal DTC Amounts for 2025
- Base Amount: $9,428
- Supplement for Children Under 18: $5,578
Provincial and Territorial DTC Amounts (2025)
Each province sets its own DTC amount in addition to the federal credit:
| Province/Territory | Adult Amount | Child Supplement |
|---|---|---|
| Alberta (AB) | $14,940 | Worksheet AB428 |
| British Columbia (BC) | $8,303 | Worksheet BC428 |
| Manitoba (MB) | $6,180 | Worksheet MB428 |
| New Brunswick (NB) | $8,552 | Worksheet NB428 |
| Newfoundland & Labrador (NL) | $6,435 | Worksheet NL428 |
| Northwest Territories (NWT) | $12,362 | Worksheet NT428 |
| Nova Scotia (NS) | $7,341 | Worksheet NS428 |
| Nunavut (NU) | $14,016 | Worksheet NU428 |
| Ontario (ON) | $8,790 | Worksheet ON428 |
| Prince Edward Island (PEI) | $6,890 | Worksheet PE428 |
| Quebec (QC) | Separate provincial tax system | |
| Saskatchewan (SK) | $9,559 | Worksheet SK428 |
How to Apply for the Disability Tax Credit
To apply, complete the T2201 Disability Tax Credit Certificate and submit it to the CRA. A qualified medical practitioner must certify the application, confirming the severity of your disability. Once reviewed, the CRA will send you a Notice of Determination outlining your eligibility.
Retroactive Claims
If eligible, you can apply for past years’ credits retroactively, up to 10 years under the Taxpayer Relief Provision. This can result in significant tax refunds.
Claiming the Disability Tax Credit on Your Taxes
Once approved, you can claim the DTC by entering the relevant amounts on your tax return:
- For yourself: Line 316
- For a dependent: Line 318
- For a spouse/common-law partner: Line 326
If you haven’t received approval before the tax deadline, you’ll need to wait until the following tax year or amend past returns once your application is approved.
Additional Financial Support for Individuals with Disabilities
Beyond the DTC, you may qualify for other financial aid programs:
1. Family Caregiver Amount Tax Credit
A tax credit for those supporting a dependent with a severe disability.
2. CPP Disability Pension
A taxable monthly benefit for individuals who contributed to CPP but can no longer work due to a disability.
3. CPP Post-Retirement Disability Benefit
For individuals under 65 who contributed to CPP and are unable to work due to a disability.
4. Children’s CPP Benefit
Financial support for dependent children of individuals receiving CPP disability benefits.
5. Registered Disability Savings Plan (RDSP)
A long-term savings plan designed to help individuals with disabilities and their families secure financial stability.
6. Canada Disability Savings Bond
A government bond that provides up to $1,000 annually to low-income families with an RDSP.
7. Canada Disability Savings Grant
A matching grant of up to 300% of RDSP contributions, with a maximum of $3,500 per year.
8. Medical Expenses Tax Credit
A credit for eligible out-of-pocket medical expenses related to disabilities.
The Disability Tax Credit is a crucial financial relief tool for individuals with disabilities in Canada. By understanding your eligibility, maximizing retroactive claims, and applying for additional disability benefits, you can significantly reduce financial strain. If you need assistance with your application or tax filing, consult a tax professional or disability advocate.
With proper guidance, the DTC can help improve financial security and quality of life for those living with disabilities and their caregivers. Don’t leave money on the table—explore your options today!