Disability Tax Credit (DTC) Guide: Eligibility, Application & Claim Tips (2025)

The Disability Tax Credit (DTC) is a valuable non-refundable tax credit aimed at helping Canadians living with a severe and prolonged physical or mental impairment—or their supporting family members. The DTC can reduce your income tax bill by thousands of dollars annually and unlock access to other important programs (such as the RDSP and Child Disability Benefit). This comprehensive guide covers DTC eligibility, the application process, how to claim retroactively, transfer rules, and expert tips to maximize your benefits in 2025.

What’s Covered: Who qualifies, step-by-step DTC application, supporting documents, how to claim, transfer rules, and retroactive refunds
Who’s Eligible: Individuals with severe and prolonged impairment, family caregivers, parents of children with disabilities
Quick Links: Eligibility, Apply, Claim, Transfer, FAQ

For health-related credits by province, see: Ontario, BC, Quebec

A Canadian doctor reviewing a disability tax credit form with a family, illustrating the DTC application process

Who Is Eligible for the Disability Tax Credit?

Severe and Prolonged Impairment: You must have a severe and prolonged physical or mental impairment, certified by a qualified medical practitioner, that has lasted (or is expected to last) at least 12 months.
Marked Restriction: The impairment must cause “marked restriction” in at least one of the following basic activities of daily living:
- Walking
- Feeding oneself
- Dressing oneself
- Speaking
- Hearing
- Elimination (bowel/bladder functions)
- Mental functions necessary for everyday life
Cumulative Effect of Significant Restrictions: If you have two or more significant (but not marked) restrictions, the combined impact may qualify.
Life-Sustaining Therapy: If you require life-sustaining therapy (e.g., insulin, dialysis) for at least 14 hours per week, you may be eligible.
Certification by Practitioner: The impairment must be certified on Form T2201 by a medical doctor, nurse practitioner, optometrist, audiologist, occupational therapist, psychologist, physiotherapist, or speech-language pathologist (as appropriate).

Note: Eligibility is based on the impact of the impairment—not just a diagnosis. The CRA reviews each application individually.

How to Apply for the Disability Tax Credit: Step-by-Step

Download Form T2201: Get the Disability Tax Credit Certificate (T2201) from the CRA.
Complete Part A: Fill in your personal information (or the applicant’s, if you are applying for a dependent).
Have a Qualified Practitioner Complete Part B: Take the form to the medical professional best able to describe the impairment (doctor, nurse practitioner, or specialist). They must:
- Describe the impairment, its effects, and duration
- Certify if the impairment is severe and prolonged
- Sign and date the form
Submit the Application: Send the completed T2201 to the CRA by mail (address on form) or online via CRA My Account (scan/upload).
Wait for CRA Review: CRA will review the application and may contact you or the practitioner for more information.
Receive Decision: If approved, you’ll get a notice stating the years for which you are eligible. If denied, CRA will explain why and you can request a review or appeal.

Tip: You can apply anytime—even after the tax year has ended. If approved, you can request adjustments for up to 10 previous years to claim missed credits.

How to Claim the DTC: Refunds, Retroactive Credits & Amounts

Claiming on Your Tax Return: Once approved, claim the DTC amount on your federal return (Line 31600 for self, 31800/32600 for dependents/transfer). Provincial/territorial amounts are also available.
Non-Refundable Credit: The DTC reduces taxes owing—it does not generate a refund if you do not owe tax, but can be transferred to a supporting relative (see below).
Maximum Value: For 2025, the federal disability amount is $9,428 (approx. $1,414 in tax savings), plus applicable provincial credits. Amounts are indexed annually.
Retroactive Claims: If the DTC is approved for prior years, you can request adjustments (T1-ADJ or ReFILE) for up to 10 years. This can result in a substantial refund for past missed credits.
Child Disability Benefit (CDB): If claiming for a child, approval may trigger eligibility for the Child Disability Benefit—a monthly cash payment added to the Canada Child Benefit.
Registered Disability Savings Plan (RDSP): DTC approval is required to open an RDSP and receive federal grants/bonds (up to $90,000 lifetime).

Transferring the DTC to a Supporting Family Member

When to Transfer: If the person with the disability does not owe enough tax to use the full credit, unused DTC can be transferred to a supporting spouse, parent, grandparent, child, grandchild, brother, sister, uncle, aunt, niece, or nephew.
Support Requirement: The supporting relative must have provided food, shelter, or clothing for the person with the disability during the tax year.
How to Claim: Enter the transferred amount on Line 31800 (for dependents under 18 or adult relatives) or Line 32600 (spouse/common-law partner) of your tax return.
Only Unused Amounts Transfer: Only the portion of the credit that the person with the disability cannot use can be transferred.
Multiple Supporters: If more than one person supported the individual, the credit can be split, but the total claimed cannot exceed the maximum.

Tip: The transfer rules are especially important for parents of children with disabilities—often, the parent uses the full credit.

Frequently Asked Questions: Disability Tax Credit (DTC)

Can I claim the DTC for mental health conditions?

Yes. Severe and prolonged mental impairments (e.g., depression, autism, ADHD, intellectual disabilities) may qualify if they result in marked restriction in mental functions necessary for everyday life. Medical certification and detailed impact statements are required.

Can I get the DTC for my child?

Yes, parents/guardians can claim the DTC for a child under 18 who qualifies. A supporting medical practitioner must complete the child’s T2201. Additional benefits (Child Disability Benefit, RDSP) may be unlocked.

How far back can I claim the DTC?

If your application is approved for past years, you can request adjustments (T1-ADJ) for up to 10 previous years. This can result in significant retroactive refunds.

Do I need to reapply each year?

No. Once approved, the CRA letter will specify the years you are eligible for. If your impairment is permanent, approval may be indefinite. If for a limited period, you may need to reapply after the expiry date.

Can I get help applying for the DTC?

Yes. Free help is available from disability advocacy groups, community organizations, and tax professionals. Be cautious of companies charging high contingency fees for DTC applications—they are not required for approval.

What happens if my DTC application is denied?

You can request a review (with additional information or medical clarification), file a formal objection, or appeal to the Tax Court of Canada. Many denials are overturned with more detailed documentation.

Related Guides & Resources

For business owners, see: Small Business Deductions | Startup Tax Incentives