Canada Disability Tax Credit Guide (DTC)
the Disability Tax Credit (DTC) in Canada. The DTC is a non-refundable tax credit for the individuals with the severe and prolonged physical or mental impairments. The DTC amount for 2025 is $9,628 (the "base amount"). The supplemental amount for the children under 18 is $5,623 (the "child supplement" — in addition to the base amount). The DTC is calculated at the 15% federal rate (the credit value is $1,444 for the adult and $844 for the child supplement). The DTC application is made through the T2201 form (the "Disability Tax Credit Certificate") — the form must be completed by the qualified medical practitioner (the doctor, the nurse practitioner, the psychologist, the occupational therapist, the optometrist, the audiologist, or the speech-language pathologist) and certified by the CRA. The DTC eligibility requires the severe and prolonged impairment (the impairment lasting for 12+ months and restricting the basic activities of daily living to a marked degree — 90%+ of the time, the individual cannot perform the activity). The basic activities of daily living are the walking, the speaking, the hearing, the vision, the feeding, the dressing, the elimination (the bowel/bladder functions), the mental functions (the memory, the problem-solving, the goal-setting, the concentration), and the life-sustaining therapy (the insulin therapy, the dialysis, the oxygen therapy). The DTC transfer allows the unused DTC to be transferred to the spouse or the supporting parent (the "supporting person" — the parent, the grandparent, the child, the grandchild, the sibling, the aunt, the uncle, the niece, or the nephew). The DTC carry-back (the 2022 Budget) allows the DTC to be carried back by up to 10 years for the first-time applicants (the "retroactive DTC" — the taxpayer can apply for the DTC for the years before the application). The DTC is the gateway to the RDSP (the Registered Disability Savings Plan) and the Canada Disability Benefit (the new federal benefit for the working-age individuals with the disabilities).
DTC Amounts (2025)
- Base amount (adult): $9,628. The federal credit is $1,444 (15% of $9,628). The provincial credit varies (the Quebec DTC at 14% to 25.75%, the Ontario DTC at 5.05% to 13.16%, etc.).
- Child supplement (under 18): $5,623. The child supplement is available for the children who meet the DTC criteria at the time of the first certification (the "first-time certification" — the child must be under 18 when the T2201 is first filed). The total federal credit for the child is $1,444 + $844 = $2,288.
- Provincial DTC amounts: The provincial DTC is calculated at the provincial rate. For example, the Ontario DTC is $9,628 x 5.05% = $486 (the "Ontario disability credit"). The Quebec DTC is $9,628 x 14% = $1,348 (the "Quebec disability amount").
DTC Application Process
- T2201 form: The "Disability Tax Credit Certificate" form (the T2201) must be completed by the qualified medical practitioner. The form has two parts: Part A (the taxpayer's information and the consent) and Part B (the medical practitioner's certification of the impairment).
- Qualified practitioners: The medical doctor (MD), the nurse practitioner (NP), the psychologist (for the mental functions), the occupational therapist (for the physical functions), the optometrist (for the vision), the audiologist (for the hearing), and the speech-language pathologist (for the speaking).
- CRA review: The CRA reviews the T2201 and issues the "DTC approval letter" (the "Notice of Determination" — the "DTC approved" or the "DTC denied"). The CRA can request the additional information from the practitioner.
- Retroactive DTC: The DTC can be applied retroactively for up to 10 years (for the first-time applicants). The taxpayer must provide the medical certification for each of the prior years (the "retroactive T2201"). The CRA may adjust the tax returns for the approved years.
DTC Eligibility Criteria
- Severe and prolonged: The impairment must be "severe" (the individual is unable to perform the basic activity of daily living for 90%+ of the time, or takes an inordinate amount of time to do so) and "prolonged" (the impairment has lasted or is expected to last for 12+ months).
- Marked restriction: The impairment must cause the "marked restriction" in one or more of the basic activities of daily living. The "marked restriction" is the inability to perform the activity 90%+ of the time, or the "life-sustaining therapy" requirement.
- Basic activities of daily living: The speaking, the hearing, the walking, the eating/feeding, the dressing, the elimination (the bowel and bladder functions), the mental functions (the memory, the problem-solving, the goal-setting, the judgment, the concentration), and the life-sustaining therapy (the insulin therapy, the dialysis, the oxygen therapy, the therapy for the cystic fibrosis).
- Cumulative effect: The CRA can consider the cumulative effect of the multiple impairments (the "cumulative effect" — the combination of the impairments that is substantially restricted even if each impairment alone is not "marked").
DTC Transfer & Carry-Back
- Transfer to spouse: The unused DTC can be transferred to the spouse or the common-law partner (the "DTC spousal transfer"). The spouse claims the unused DTC on the Schedule 1 (Line 31600).
- Transfer to supporting person: The DTC for the dependent child (the minor or the adult child living with the parent) can be transferred to the parent or the supporting person (the "DTC supporting person transfer"). The supporting person claims the DTC if the dependent cannot use the credit.
- 10-year carry-back: The DTC can be carried back for up to 10 years (the "retroactive DTC" for the first-time applicants). The taxpayer can request the adjustment of the tax returns for the approved years (the "DTC adjustment request").
- No carry-forward: The DTC cannot be carried forward (unlike the tuition credit and the charitable donations). The DTC must be claimed in the year of the eligibility or transferred to the supporting person.
For the RDSP and the long-term disability savings, see our RDSP Guide →. For the medical expense tax credit and the disability supports, see our Medical Expenses Guide →.