The Disability Tax Credit (DTC) is a non-refundable tax credit that can reduce income tax for a person with a severe and prolonged impairment, or an eligible supporting family member. Approval may also open the door to other disability programs and refunds for eligible past years.

The Canada Revenue Agency (CRA) generally looks at how your impairment affects everyday activities, rather than your diagnosis alone. You can work and still qualify. Being unable to work does not automatically make you eligible.

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What Is the Disability Tax Credit?

The DTC helps offset some of the extra costs of living with an impairment by reducing income tax. It is administered by the CRA and is available to eligible adults and children.

Non-refundable means the credit can reduce tax owing to zero, but any unused credit is not paid out to you. However, claiming it for a past year may produce a refund of tax already paid.

DTC approval may also help you access programs such as the Registered Disability Savings Plan (RDSP), Child Disability Benefit and Canada Disability Benefit. Each has its own additional requirements.

The DTC is not a monthly disability payment. It is separate from CPP Disability, provincial income assistance and long-term disability insurance. Approval for one does not automatically mean approval for another.

Who Qualifies for the Disability Tax Credit in Canada?

Eligibility depends on the type, severity and duration of your impairment. An authorized medical practitioner must certify its effects, and the CRA decides whether you qualify.

A Marked Restriction in an Everyday Activity

For activities such as walking, dressing or feeding, a marked restriction generally means you are unable to perform the activity, or it takes at least three times longer than it would for someone of a similar age without the impairment.

  • The restriction remains despite appropriate medication, therapy and devices.
  • It exists all or almost all of the time, generally at least 90%.
  • It has lasted, or is expected to last, at least 12 continuous months.

CRA categories cover walking, dressing, feeding, eliminating (bowel or bladder functions), hearing, speaking, vision and mental functions necessary for everyday life. The specific CRA criteria vary by category.

The Combined Effect of Several Limitations

You may qualify when significant limitations in two or more eligible categories together have an impact equivalent to one marked restriction. The limitations must exist together all or almost all of the time and meet the duration requirement.

For example, limitations involving both walking and dressing may need to be considered together. Having several diagnoses is not enough by itself; the application must explain their combined functional effects.

Life-Sustaining Therapy

A separate route applies to qualifying therapy that supports a vital function. For 2021 and later years, this generally requires therapy at least twice a week, averaging at least 14 hours weekly, with the impairment lasting or expected to last at least 12 continuous months. Only qualifying activities count toward the time requirement.

Type 1 diabetes has a special rule: for 2021 and later years, people with type 1 diabetes are deemed to meet the life-sustaining therapy requirements. They still need to apply and have the condition certified. Read our diabetes and Disability Tax Credit guide.

What Medical Conditions May Qualify for the DTC?

Many physical, mental health and developmental conditions can cause qualifying limitations. These guides explain how particular conditions may meet the DTC requirements:

This is not an exhaustive list. See our guide to medical conditions that may qualify for the Disability Tax Credit for a broader explanation.

How Much Is the Disability Tax Credit Worth?

Your tax savings depend on the applicable federal and provincial or territorial amounts, your tax payable, your age and the years approved. An eligible supporting family member may be able to claim an unused amount.

The disability amount shown on a tax form is not the amount of cash you receive. It is used to calculate a tax credit. Your actual savings may be lower, including zero if there is no tax to reduce and no eligible transfer.

Can You Receive a Retroactive Refund?

If you qualified in past years but did not claim the credit, you may be able to adjust tax returns going back up to 10 years. A refund depends on the years approved and the tax circumstances for those years.

Read our DTC amounts and refunds guide for more detail about tax savings, transfers and retroactive claims.

How Do You Apply for the Disability Tax Credit?

You apply using the T2201 Disability Tax Credit Certificate, through the CRA’s digital or paper application process.

  1. Complete Part A: Provide the applicant’s details and any relevant supporting family member information.
  2. Have a medical practitioner complete Part B: They describe and certify the impairment, its effects and when the qualifying limitations began.
  3. Submit the completed application: Follow the CRA instructions for your chosen method. Keep a copy.
  4. Review the decision: If approved, check the eligible years and arrange any necessary tax-return adjustments.

A doctor or nurse practitioner can certify all impairment categories. Other professionals can certify specific categories, such as an audiologist for hearing or a psychologist for mental functions.

You can apply at any time of year. The CRA does not charge an application fee, although your practitioner may charge for completing the medical section.

For the full walkthrough, see how to apply for the Disability Tax Credit.

What if Your Disability Tax Credit Application Is Denied?

A denial does not necessarily end your options. Start with the reasons in your notice of determination and compare them with the information submitted by your medical practitioner.

You may ask the CRA to review its decision, provide additional medical information or file a formal objection. The appropriate next step depends on why the application was denied.

Check the objection deadline immediately. The CRA states that you have 90 days from the date of the notice of determination to file an income tax objection. Do not assume that requesting a review or submitting another application extends that deadline.

Read our guide to what to do when your DTC application is denied and the CRA’s review and objection guidance.

Disability Tax Credit: Frequently Asked Questions

Can I Qualify if I Still Work?

Yes. The DTC assesses qualifying impairments in everyday functioning or qualifying therapy requirements. It does not require you to stop working.

Can Children Qualify for the DTC?

Yes. A child may qualify when their impairment meets the relevant criteria. The assessment considers their functioning compared with a child of a similar age without the impairment. Ordinary age-related assistance alone does not establish eligibility.

Can Anxiety, Depression or ADHD Qualify?

Potentially. The CRA considers restrictions in mental functions necessary for everyday life, including memory, judgment, attention and adaptive functioning. A diagnosis or difficulty coping at work alone is not enough. See our mental health DTC guide.

Do I Have to Apply Again Every Year?

No. Your notice of determination identifies the approved years. Some approvals expire and require a new application; others do not have a fixed end date. Check your notice and any subsequent CRA correspondence.

How Long Does Approval Take?

Processing times vary, especially if the CRA requests more medical information. Use the CRA’s current processing-time information and your CRA account to check progress. Approval and a refund from adjusted tax returns are separate steps.

Do I Need to Hire Someone to Apply?

No. You can apply directly with your medical practitioner’s help. If you choose a paid service, review its fees, terms and scope of assistance before agreeing.

Dealing with a separate disability insurance denial? Samfiru Tumarkin LLP’s disability lawyers help people challenge denied or terminated LTD insurance benefits across Canada, excluding Quebec.

Get Help Understanding Your DTC Options

For DTC application assistance, you can contact True North Disability Services through the link below. This takes you to an external provider, where you can review its services and fees.

Explore DTC Assistance