The Canada Disability Tax Credit (DTC) is a federal non-refundable tax credit that reduces the income tax payable by a person with a severe and prolonged impairment in physical or mental functions — or, where the person cannot use the full amount, by a supporting family member to whom the unused amount is transferred. It is not a monthly benefit payment, and it is not paid out simply because a diagnosis exists. The Canada Revenue Agency (CRA) decides eligibility on how the impairment affects basic activities of daily living, and only after it has approved Form T2201, the Disability Tax Credit Certificate.
That distinction matters more than any other single point in this guide. A diagnosis tells the CRA what condition you have. Form T2201 must show what that condition stops you from doing, how much of the time, and for how long. Get that evidence right, and the credit — including, in many cases, claims for earlier years — follows. Get it wrong, and even a serious condition can be refused.
Who qualifies for the Canada Disability Tax Credit?
You may qualify if a qualified medical practitioner certifies that you have a severe and prolonged impairment in physical or mental functions. In practice the CRA applies three tests together:
- Severe: the impairment markedly restricts your ability to perform a basic activity of daily living. That generally means you cannot do it at all, or it takes you an inordinate amount of time — roughly three times as long as someone without the impairment — all or substantially all of the time, generally at least 90% of the time.
- Prolonged: the impairment has lasted, or is expected to last, for a continuous period of at least 12 months.
- Certified: the restriction, its duration and its effects are certified by a qualified medical practitioner on Form T2201. The type of practitioner who can certify depends on the category of impairment — for example, a medical doctor, nurse practitioner, psychologist, optometrist or audiologist for their respective areas.
The basic activities the CRA considers include walking, speaking, hearing, mental functions, feeding, dressing, eliminating (bladder or bowel function), and life-sustaining therapy. Mental functions cover everyday abilities such as memory, problem-solving, goal-setting, judgment and regulating behaviour and emotions — again, judged by their effect on daily life, not by a label alone.
Two further points catch many applicants out. First, you can still qualify if you work. Employment does not disqualify you; what matters is the restriction in a basic activity, even if you manage work with accommodations or reduced hours. Second, the cumulative effect counts: several smaller restrictions that together markedly restrict daily living can qualify, even if no single restriction would qualify on its own. If your practitioner only describes your strongest limitation and leaves out the rest, you may be underselling a valid claim.
A diagnosis alone is therefore never the application. Conditions are often listed in online articles — diabetes, autism, multiple sclerosis, depression, Crohn’s disease and many others appear regularly — but the CRA does not approve by condition name. Two people with the same diagnosis can properly receive different decisions, because their functional restrictions differ. Your application should describe, with concrete examples, what takes far longer, what you cannot do without help, and how often that is true.
How much is the Canada Disability Tax Credit worth in 2025?
For the 2025 tax year, the federal disability amounts confirmed by the CRA are:
- Person aged 18 or older: $10,138
- Person under 18 at year-end: $10,138 plus a $5,914 supplement for children, for a total of $16,052
Those figures are amounts claimed on the return, not cheques. Because the DTC is non-refundable, the federal tax saving is the amount multiplied by the lowest federal tax rate — 14.5% for 2025. So the maximum federal saving for an adult in 2025 is about $1,470 ($10,138 × 14.5%), and for a child under 18 about $2,328 ($16,052 × 14.5%), before any provincial credit. Provincial disability amounts and rates are calculated separately and vary by province, so your total saving depends on where you live and how much tax you actually owe. If you owe less tax than the credit is worth, the unused federal amount is not refunded to you — which is exactly why the transfer rules below matter.
Do not use the old figures still circulating online. Amounts from earlier years — for example the $8,416 adult figure that appeared in this post when it was first written — no longer apply to a 2025 return. Always claim the amount for the year you are filing, and check the CRA’s current table before filing.
How to apply: Form T2201, step by step
- Complete Part A yourself. Part A is the applicant’s part: your personal information and authorization. If you are applying for someone else, a legal representative completes it.
- Have a qualified medical practitioner complete Part B. This is the medical part, and it carries the decision. Give your practitioner specific, dated examples of the restriction — what you cannot do, how long ordinary tasks take, and how consistently the problem is present — rather than only a diagnosis and a signature.
- Submit the completed form to the CRA. The CRA also offers a digital DTC application route; paper Form T2201 remains available. Keep a copy of everything you send.
- Wait for the CRA’s notice of determination. This is the CRA’s written decision: whether you are approved, for which years, and whether approval is permanent or has an expiry date. Do not claim the credit on a return until you have that approval for the year in question.
- Claim the credit on each return for as long as the approval lasts. You do not reapply every year unless your approval expires or the CRA asks for a new application. If approval is temporary, diarise the expiry date and reapply in good time so there is no gap.
Processing takes weeks and can take longer if the CRA asks for more information. A request for more detail is not a refusal — answer it promptly and specifically, with the same functional detail as the original application.
How to claim the DTC on your tax return
Once the CRA has approved you, claim the amount for the correct person and the correct year:
- Claiming for yourself: enter the disability amount on line 31600 of your return.
- Claiming an unused amount transferred from a dependant: enter it on line 31800, where you are the supporting family member (other than a spouse or common-law partner) and the relationship and support tests are met.
- Transfer from a spouse or common-law partner: the unused amount flows through Schedule 2 and is claimed on line 32600.
Check three things before you file: the approval covers the year you are claiming, you are using that year’s amount, and you have not claimed the same amount twice between family members. Where a child under 18 is involved, confirm who claims the supplement and who claims any transferred amount — the family should decide in advance who can best use the credit, because only the unused portion can be transferred and the rules differ by relationship.
Can you claim the DTC for previous years?
Yes — this is often where the largest refund comes from. If you were eligible in past years but did not claim the disability amount, you may be able to claim it going back up to 10 years, subject to the years the CRA has approved and the normal reassessment rules. The route is to ask the CRA to adjust each earlier return (for example by filing a T1 adjustment request) so the credit is applied year by year, using each year’s own amount and rate.
Work through this year by year, not as a single lump sum. Each year’s refund depends on that year’s amount, that year’s rate, and how much tax was actually payable in that year. A person approved for several earlier years but with little tax payable in some of them will not receive the same refund as someone with tax payable in every year. Keep the notice of determination, the original T2201, and every notice of reassessment together — if the CRA queries a back-year claim, those documents are your evidence.
What other programs does DTC approval open up?
DTC approval is a gateway, not just a credit. Depending on your circumstances, approval can support eligibility for the Registered Disability Savings Plan (RDSP), the Child Disability Benefit for a child under 18, and the Canada Disability Benefit for adults — each of which has its own application, age rules and income tests, and none of which is paid automatically with the DTC itself. If you are approved, check these programs promptly rather than assuming they follow: some have their own deadlines and application steps, and a delay can cost a year of entitlement.
Separately, if you support an infirm dependant, check whether the Canada Caregiver Credit also applies to you. It is a different credit with different tests from the DTC, and it is not a substitute for transferring an unused DTC amount. Claiming the right combination — rather than the first credit you find — is where professional review usually pays for itself.
If the CRA says no, or your approval expires
A refusal is a decision about the evidence on file, not a final judgment about your condition. Read the notice of determination carefully: it will say what was missing and what deadline applies to challenging it. Your options typically include providing additional information from your medical practitioner and asking the CRA to review the decision again, or filing a formal objection within the deadline stated on the notice. Do not miss that deadline while gathering evidence — file what protects your position, then supplement it.
Common reasons for refusal are thin functional detail in Part B, an impairment described as intermittent when the test requires a restriction present substantially all of the time, and a form that lists a diagnosis without explaining its daily effect. A stronger resubmission does not argue harder; it evidences better, with timed, dated, everyday examples.
If your approval is temporary, the CRA notifies you before it expires. Reapply during the expiry year so the new application is decided without a gap in claims.
Common mistakes to avoid
- Claiming the credit before CRA approval arrives.
- Using an old year’s amount on a current return.
- Describing only a diagnosis, without functional examples and timeframes.
- Forgetting the child supplement, or having two family members claim the same transferred amount.
- Assuming a refusal means you do not qualify, instead of checking what evidence was missing.
- Leaving earlier years unclaimed when approval covers them — up to 10 years can be at stake.
Frequently asked questions
Is the Disability Tax Credit a monthly payment?
No. The DTC is a non-refundable tax credit that reduces tax payable. Any cash you receive comes as lower tax or a larger refund on a return, or as a refund when earlier returns are reassessed — not as a monthly DTC payment. Separate programs such as the Child Disability Benefit are monthly payments, but they are not the DTC itself.
Does a diagnosis such as diabetes or autism automatically qualify?
No. Eligibility depends on a severe and prolonged restriction in a basic activity of daily living, certified on Form T2201. The diagnosis matters only insofar as it explains the restriction and its duration.
Can I claim the DTC if I work?
Yes, if you meet the functional tests. Employment, with or without accommodations, does not by itself disqualify you.
How far back can I claim?
If the CRA approves you for earlier years, you may be able to claim going back up to 10 years, year by year, by asking the CRA to adjust those returns. The approved years on your notice of determination control what you can claim.
What if my spouse or child cannot use the full credit?
An unused amount may be transferred to a supporting family member, subject to relationship and support rules — line 31800 for a dependant, and Schedule 2 / line 32600 for a spouse or common-law partner. Decide in advance who in the family can best use it.
Get help with a DTC claim in Toronto and Mississauga
A well-evidenced T2201 and a correctly claimed return — including back years — are worth getting right the first time. If you are in Toronto or Mississauga and want help reviewing your eligibility, preparing the application, or adjusting earlier returns, contact Filing Taxes at (416) 479-8532. We can review your notice of determination, check which years remain open, and make sure the credit — and any transfer — is claimed on the right lines for the right years.
