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Disability Tax Credit

The Disability Tax Credit, made clearer

Understand what the DTC does, how the CRA assesses eligibility, and how to approach the application.

What is the Disability Tax Credit?

The federal Disability Tax Credit (DTC) is a non-refundable tax credit that may reduce income tax payable by a person with a qualifying impairment, or by a supporting family member who is permitted to claim the disability amount. It is not a monthly income-support payment.

Eligibility is based on effects, not just a diagnosis

The Canada Revenue Agency assesses the effects of an impairment on specific activities and functions. A medical practitioner must certify the relevant information. Eligibility can involve a marked restriction in one category, significant limitations in multiple categories, or qualifying life-sustaining therapy.

How to apply

  1. Review the current DTC criteria and application process.
  2. Complete the applicant portion of the digital or paper application.
  3. Ask an eligible medical practitioner to complete the certification section.
  4. Submit the complete application using one of the CRA’s accepted methods.
  5. Keep a copy and monitor the application status.

Why the DTC can matter beyond tax time

DTC approval may be a gateway to other programs or savings opportunities. For example, the Canada Disability Benefit requires DTC approval as part of its eligibility criteria. Each related program has its own additional requirements.

Official information

Disability Tax Credit overview

How to apply

Form T2201

Approval is based on the statutory criteria and the information submitted. A diagnosis or receipt of another disability benefit does not automatically result in DTC approval.