Disability Tax Credit
Who qualifies for the disability tax credit, how to apply, and what it unlocks.
The short version
- The disability tax credit (DTC) is a non-refundable credit on a disability amount of $10,341 for 2026, plus a supplement of up to $6,032 for a person under 18.
- You qualify if a severe and prolonged impairment markedly restricts a basic activity of daily living (seeing, speaking, hearing, walking, eliminating, feeding, dressing, mental functions), or you need life-sustaining therapy, or several significant restrictions add up.
- Apply with form T2201. Part A is yours; Part B is completed by a medical practitioner. You can apply online.
- Approval opens other doors: the RDSP, the Child Disability Benefit, the Canada Disability Benefit, and more.
- Can't use the credit? It can be transferred to a spouse or a supporting family member.
Disability Tax Credit: Eligibility and Application
The DTC is worth more than its name suggests. On its own, it cuts federal tax by about $1,448 a year, plus provincial tax. But the approval is the key to a whole ring of other benefits, some worth thousands a year, and it can reach back ten years. That's also why companies offering to “get you the DTC” for a share of your refund are so common. Most families can apply themselves, for free.
Who Qualifies
The impairment has to be prolonged (it has lasted, or is expected to last, at least 12 continuous months) and severe, in one of these ways:
- Markedly restricted in a basic activity: vision, speaking, hearing, walking, eliminating (bowel or bladder), feeding, dressing, or mental functions necessary for everyday life. “Markedly restricted” means unable, or taking an inordinate amount of time (generally three times as long as someone of the same age without the impairment), all or substantially all of the time (generally 90%), even with therapy, devices and medication.
- Cumulative effect: significant restrictions in two or more activities that together equal a marked restriction.
- Life-sustaining therapy: needed at least twice a week, averaging at least 14 hours a week. Type 1 diabetes is deemed to meet this test.
The diagnosis alone doesn't decide it. It's the effect on daily life that counts, and how well that's described on the form.
How to Apply
- Part A of form T2201: you (or your representative) fill it in, online in My Account or on paper. Tick the box asking CRA to adjust prior years.
- Part B: a medical practitioner certifies it. Depending on the impairment, that can be a medical doctor, nurse practitioner, optometrist, audiologist, psychologist, speech-language pathologist, occupational therapist or physiotherapist. Many can submit it digitally.
- CRA decides and sends a notice. If approved, it says for which years.
- Not approved? You can ask for a review or file an objection, usually with a more detailed description of daily-life effects.
The federal government has proposed broadening who can certify (including podiatrists for walking, and provincial public guardians for adults in their care), but check the current form before relying on it.
Could you or a family member qualify?
Describe the condition and how it affects daily tasks. The assistant compares it with CRA's criteria, tells you which category fits, and which practitioner can certify it.
What the DTC Is Worth, and What Comes With It
| Benefit | 2026 amount |
|---|---|
| Disability amount (federal credit at 14%) | $10,341, worth about $1,448, plus provincial |
| Supplement for a person under 18 | Up to $6,032 more |
| Child Disability Benefit (with the Canada Child Benefit) | Up to $3,480 a year per child, income-tested |
| Canada Disability Benefit (ages 18 to 64) | Up to $204.20 a month from July 2026, income-tested |
| Registered Disability Savings Plan | Government grants and bonds, depending on family income |
| Canada Workers Benefit disability supplement | Up to $860 |
| Home accessibility tax credit | On up to $20,000 of eligible renovations a year |
Approval for past years can bring years of refunds at once. That's covered on disability tax credit for previous years.
Transferring the Credit
If the person with the disability doesn't have enough tax to use it (a child, or an adult with low income), the unused part can be transferred to a spouse, or to a supporting family member who provides basic necessities. Parents of a child with the DTC often also claim the Canada caregiver credit and larger child care expense limits.
About Companies That Charge a Percentage
Some firms offer to handle the application for a share of the refund. A law capping their fees at $100 exists, but CRA says it's suspended by a court injunction. You don't need a firm to apply; the form is free, and the medical practitioner does the part that matters. If you do want help, prefer a flat fee you know in advance.
Five Rules of Thumb
- Describe the worst days plainly, not the best ones. The form is about effects, not courage.
- Choose the right practitioner for the impairment.
- Ask for prior-year adjustments on the form.
- Refused? Ask why before reapplying. A clearer Part B wins more often than a second doctor.
- Claim everything that comes with it. Return Check looks for related claims like medical expenses that families often miss. The rest of the credits are on Canadian tax credits.
Disability Tax Credit Questions
How much is the disability tax credit worth in 2026?
The disability amount is $10,341, which reduces federal tax by about $1,448, plus a provincial credit. A person under 18 can get a supplement of up to $6,032.
Who is eligible for the disability tax credit?
Someone with a severe and prolonged impairment that markedly restricts a basic activity of daily living, requires life-sustaining therapy, or causes significant restrictions in several areas that together equal a marked restriction, as certified on form T2201.
Who can fill out the medical part of form T2201?
A medical practitioner appropriate to the impairment, such as a medical doctor, nurse practitioner, optometrist, audiologist, psychologist, speech-language pathologist, occupational therapist or physiotherapist.
Can I transfer the disability tax credit?
Yes. Unused amounts can be transferred to a spouse or common-law partner, or to a supporting person who provides basic necessities.
Do I need a company to apply for the DTC?
No. You can apply yourself for free. A fee cap for promoters exists in law but is suspended by a court injunction, so fees vary.
Sources: CRA, RC4064 Disability-Related Information; 2026 indexation table; DTC promoters restrictions (suspended); ESDC, Canada Disability Benefit amounts; Finance Canada, proposed DTC access changes (May 2026). Checked October 2026. The proposed changes to who can certify were not yet law when checked.
Last reviewed October 5, 2026 against CRA and Government of Canada sources. How we check our facts.