Key Highlights

  • The Disability Tax Credit is one of the Canada Revenue Agency's most valuable, and most underused, measures for Canadians living with a severe and prolonged impairment.
  • It can reduce the income tax you owe and, just as importantly, open the door to other programs.
  • For the 2025 tax year, the disability amount is $10,138, claimed on line 31600.
  • A person under 18 may also be eligible for a supplement of up to $5,914.

The Disability Tax Credit is one of the Canada Revenue Agency's most valuable, and most underused, measures for Canadians living with a severe and prolonged impairment. It can reduce the income tax you owe and, just as importantly, open the door to other programs. Yet many who could qualify never apply. Here is who may be eligible in 2026, how the credit works, and why it should not be confused with the separate Canada Disability Benefit.

What the Disability Tax Credit is

The Disability Tax Credit (DTC) is a non-refundable tax credit administered by the CRA. It is intended for a person with a severe and prolonged Impairment in physical or mental functions. Being non-refundable, the credit reduces the amount of income tax payable; on its own it does not create a refund where no tax is owed. For the 2025 tax year, the disability amount is $10,138, claimed on line 31600. A person under 18 may also be eligible for a supplement of up to $5,914. The value of the credit depends on your tax situation, so the benefit varies from person to person.

Who may qualify

Eligibility is based on the effect of the impairment, not the diagnosis itself. Generally, the impairment must be severe and prolonged, and its effects must be certified by a medical practitioner. The CRA reviews each application to determine whether the criteria are met. Because eligibility turns on how an impairment affects daily functioning, some people who assume they would not qualify may in fact be eligible, while others may not. Checking against the CRA's criteria, ideally with a medical practitioner, is the best way to find out.

How to apply

To apply, you complete Form T2201, the Disability Tax Credit Certificate, which includes a section a medical practitioner must complete to certify the impairment. Once the CRA reviews and approves the application, you can claim the credit on your tax return. Approval also matters beyond the credit itself. The DTC acts as a gateway to other measures, including the Child Disability Benefit, the Registered Disability Savings Plan (RDSP) and the Canada Disability Benefit. Getting approved can therefore unlock support that extends well past the annual tax credit.

Do not confuse it with the Canada Disability Benefit

A common point of confusion is the difference between the Disability Tax Credit and the Canada Disability Benefit. They are not the same thing. The DTC is a CRA non-refundable tax credit claimed on your return. The Canada Disability Benefit is a separate, newer program delivered by Service Canada (Employment and Social Development Canada), paying up to about $200 per month for working-age people aged 18 to 64, an amount set at $204.20 from July 2026. Importantly, DTC approval is itself a requirement for the Canada Disability Benefit. So while the two are distinct, getting approved for the Disability Tax Credit is a necessary step toward that separate payment.

Conclusion

The Disability Tax Credit can reduce the tax owed by Canadians living with a severe and prolonged impairment, and it opens the door to other important programs. With a 2025 disability amount of $10,138 and a supplement of up to $5,914 for those under 18, it is worth checking your eligibility, completing Form T2201 with a medical practitioner and confirming the details with the CRA, especially given its role as a gateway to benefits like the separate Canada Disability Benefit.