The Disability Tax Credit (DTC) is a non-refundable credit that reduces the amount of income tax you owe. It is not a monthly or quarterly payment. If your credit exceeds your tax owing, the unused portion can often be transferred to a supporting family member (spouse, parent, grandparent, child, sibling, etc.) if identified appropriately, but any remaining federal amount is not refunded in cash.
Beyond tax relief, DTC approval is a gateway to other supports. In 2025, being eligible for the DTC may help you access the Registered Disability Savings Plan (RDSP) as well as the Canada Disability Benefit once operationalized, among other programs listed by the CRA.
Canada Disability Tax Credit (DTC) Quick summary
Item |
Details |
|---|---|
Program |
Disability Tax Credit (DTC) a non-refundable federal income tax credit that reduces the income tax you owe. Not a monthly cash payment. |
What it does |
Lowers or eliminates income tax for eligible people with severe and prolonged impairments, and can unlock related programs such as the RDSP and the Canada Disability Benefit. |
2025 federal amounts |
Adults: disability amount $10,138. Children under 18: additional supplement up to $5,914 (reduced if certain child-care or attendant-care expenses are claimed). |
Credit value |
Federal savings equal the disability amount multiplied by the lowest federal tax rate, with additional provincial/territorial credits on top. Many 2025 references use 14.5 percent as the federal credit rate. |
Eligibility snapshot |
Marked restriction in at least one basic activity of daily living (or significant limitation in two or more) for 12+ months, or regular life-sustaining therapy; certification by an authorized medical practitioner is required. |
How to apply |
Submit Form T2201 Disability Tax Credit Certificate: you complete Part A; your medical practitioner completes Part B; send to CRA online via My Account or by mail. |
Processing updates |
CRA notes processing delays for T2201; you can track your file in CRA My Account. |
Retroactive relief |
If you were eligible but did not claim in earlier years, you may be able to adjust returns up to 10 years back. |
Official site |
CRA — Disability Tax Credit (overview, eligibility, how to apply, claim instructions). (Canada.ca) |
2025 disability amounts and how the math works
- Federal disability amount (adults, 18+) for 2025: $10,138.
- Federal supplement for children under 18 (maximum) for 2025: $5,914.
Multiple professional references and comparative tax tables list these 2025 values (they are indexed annually). Provinces and territories provide their own disability amounts and credit rates as well.
The value of a non-refundable credit is calculated by multiplying the base amount by the lowest tax rate for that jurisdiction (federal plus provincial/territorial), then applying it against your tax otherwise payable. For 2025, many toolkits reflect a 14.5 percent federal rate for credit calculations, which would make the federal portion of the DTC for an adult roughly $1,471 before any provincial/territorial credit is added.
Who qualifies in October 2025
You may qualify if a qualified medical practitioner certifies that your impairment is severe and prolonged (expected to last, or has lasted, at least 12 months) and that it causes:
- A marked restriction in at least one of these activities most of the time: walking, speaking, hearing, vision, feeding, dressing, elimination, or mental functions necessary for everyday life, or
- Significant limitations in two or more of the above (so that the combined effect is equivalent to a marked restriction), or
- A need for life-sustaining therapy meeting CRA’s time and frequency criteria.
The eligibility page also sets out who can certify (physicians and nurse practitioners for most categories; specialist categories include audiologists, optometrists, occupational therapists, psychologists, speech-language pathologists).
How to apply (T2201 step-by-step)
- Start Form T2201 (Part A) You (or your legal representative) complete personal details and consent.
- Have a medical practitioner complete Part B They must describe how your impairment restricts daily activities according to CRA criteria.
- Submit to CRA File electronically via CRA My Account or mail to the tax centre listed; keep copies.
- Wait for a decision CRA will send a notice of determination. If approved, it states the years covered. If denied, you can request a review, submit more medical evidence, or file a formal objection. Note that the CRA is currently experiencing delays, and you can track progress online.
Claiming the credit and transferring unused amounts
Once approved, you claim the disability amount on your current tax return (line references are provided on the CRA site). If you cannot use the full amount because your tax is already reduced to zero, you may transfer some or all to a supporting family member who provides for basic necessities such as food, shelter, or clothing and meets CRA rules.
If you were eligible in past years but did not claim the DTC, you may be able to request adjustments up to 10 years back, which can lead to a one-time refund if the re-assessment reduces prior-year taxes payable.
Why October 2025 matters
This year’s indexation nudges the disability amounts higher, improving potential tax savings compared with 2024. The CRA also emphasizes online services: you can apply and track digitally and see linked programs like the RDSP and Canada Disability Benefit on the same set of official pages. Acting now helps ensure your approval is in place ahead of the 2025 tax-filing season.
FAQs
Is the Disability Tax Credit a payment?
No. It is a non-refundable tax credit that reduces the income tax you owe. Unused amounts may be transferable to a supporting family member, but there is no monthly or quarterly cash benefit tied to the DTC itself.
What are the federal DTC amounts for 2025?
Adults can claim $10,138; children under 18 may add a supplement up to $5,914 (subject to reduction rules). Provinces and territories provide additional, separate credit amounts.
Who can certify my application?
A physician or nurse practitioner can certify most categories; other regulated professionals can certify within their scope (for example, an optometrist for vision, an audiologist for hearing).
How long does CRA take to decide?
The CRA has flagged processing delays. You can check current timelines and track your application status in CRA My Account.
Can I claim for past years?
Yes. If you were eligible but did not claim, you can generally adjust returns back 10 years.
How does the DTC relate to the RDSP or Canada Disability Benefit?
DTC approval is often the first step for other programs. CRA lists the RDSP and the Canada Disability Benefit among programs linked to DTC eligibility.
How much tax will I save?
Your federal savings equal the disability amount multiplied by the lowest federal tax rate, with extra savings from provincial/territorial credits. Many 2025 references use 14.5 percent for the federal credit rate; provinces have their own rates and amounts.
What if CRA denies my application?
You can request a review, submit additional medical evidence, or file an objection within the deadline on your notice of determination.
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