Disability tax credit (DTC)

Approval comes before the claim

The DTC works in two steps. The first is an application that you and a medical practitioner complete together; the second is claiming the disability amount on your tax return after the CRA approves it. Ticking a box on your return does not substitute for approval.

Approval can also matter beyond income tax. The CRA notes that being eligible may help you access other federal programs, including the registered disability savings plan, the Canada workers benefit disability supplement and the child disability benefit.

Who may qualify

Eligibility rests on a severe and prolonged impairment. In general, the CRA looks for a marked restriction in one category, such as walking, mental functions, dressing, feeding, eliminating, hearing, speaking or vision, or for life-sustaining therapy. A marked restriction means you are unable to do the activity, or it takes about three times longer than for others of similar age, all or almost all of the time (generally at least 90%), for at least 12 months. Two or more significant limitations can also qualify when their combined effect is equivalent.

Having a diagnosis, or qualifying for another disability program, does not decide the question. The test is the effect of the impairment on daily activities, as certified by a medical practitioner who is allowed to certify that category.

An illustration

Suppose an adult in Ontario has a certified impairment but little tax payable, so most of the disability amount would go unused. If a spouse, parent or other eligible supporting family member provides food, shelter or clothing, the unused portion may be transferred to that person. The person with the impairment generally uses what they need first. The scenario is illustrative, not a promise of any particular saving.

The CRA has published a disability amount of $10,138 for 2025, with a supplement of $5,914 for people under 18 at year end. Figures for 2026 are published later, so check the current year before estimating anything.

Common mistakes

Filing the return and the application together can delay the assessment, because the CRA reviews the application first. Applying before you file avoids that. Applicants also cannot complete the medical practitioner’s part themselves, and both parts must go in using the same method, digital or paper.

If you were eligible in earlier years, you may be able to claim for up to 10 years back, and you can ask the CRA in the application to adjust those returns automatically. Medical practitioner fees for completing the form may be claimable as a medical expense.

What to discuss with your accountant

Ask who should claim the amount, whether a transfer to a family member makes sense, and how the DTC interacts with the medical expense credit and caregiver-related claims. Bring the approval letter, the assessed periods, any practitioner invoices and notices of assessment for years you may want reviewed. Your accountant cannot decide medical eligibility, but can model the tax effects once the CRA has.