Disability Tax Credit (DTC)

Disability Tax Credit (DTC)

The Disability Tax Credit (DTC) is a non-refundable tax credit that helps Canadians with disabilities — or their supporting family members — by reducing the amount of income tax they owe.

Created by the Canada Revenue Agency (CRA) in 1988, the DTC aims to offset some of the extra costs related to living with an impairment.

Why it matters:

  • DTC approval can unlock retroactive tax refunds worth thousands of dollars.

  • It’s also the main eligibility requirement for the new Canada Disability Benefit (CDB), which began payments in July.

  • It can give you access to other important federal, provincial, and territorial programs.

Who Can Qualify?

Eligibility isn’t based only on a medical diagnosis — it’s about how the condition impacts daily life.

General requirements:
  • Any age
  • Canadian resident for tax purposes (citizenship not required)
  • Valid Social Insurance Number (SIN)
Medical requirements — A qualified medical practitioner must certify that you have one of the following:

01

Marked restriction in at least one activity of daily living

  • You’re unable to perform the activity or it takes 3× longer than someone of the same age without the impairment, even with therapy, medication, or devices
  • Must be present at least 90% of the time, lasting or expected to last 1+ year
  • Activities include: walking, mental functions, dressing, feeding, toileting, hearing, speaking, and vision

02

Significant limitations in two or more activities of daily living

  • Combined effects equal the impact of a marked restriction
  • Must exist together at least 90% of the time, lasting or expected to last 1+ year

03

Life-sustaining therapy

  • Needed to support a vital function (e.g., dialysis, insulin, oxygen therapy)
  • Minimum 14 hours/week, at least twice weekly, lasting or expected to last 1+ year
  • Certain tasks like dosage calculation or setting up medical devices count toward the 14 hours
  • Type 1 diabetes automatically qualifies as of June 2022
Examples of Qualifying Conditions
A Amputation, Alzheimer’s Disease, ALS (Lou Gehrig’s), Anorexia Nervosa, Arthritis, Asperger Syndrome, Asthma, Autism 
B Back Injury, Bipolar Disorder, Bladder Disorder, Blindness, Bowel Disorder, Brain Injury, Brain Tumour, Broken Bones 
C Cancer, Cavus Foot, Cerebral Palsy, Chemical Sensitivities, Chronic Fatigue Syndrome, COPD, Chronic Pain, Crohn’s Disease 
D Deafness, Degenerative Disc Disease, Dementia, Depression, Developmental Delay, Diabetes (Type 1 & 2), Dressing Impairment 
E Electrocution, Elimination Issues (bowel/bladder), Emphysema, Epilepsy 
F Failed Back Syndrome, Feeding Impairment, Fetal Alcohol Syndrome, Fibromyalgia, Foot Ulcers 
G Generalized Anxiety Disorder 
H Hearing Loss, Heart Attack, Heart Defect, Heart Disease, Hepatitis, Herniated Discs, Hip Injury/Replacement, HIV, Huntington’s Disease, Hypothyroidism 
I Ileostomy, Intellectual Disability, Irritable Bowel Syndrome (IBS) 
J Juvenile Arthritis 
K Knee Injury/Pain 
L Learning Disabilities, Life-Sustaining Therapy 
M Mental Function Impairment, Mobility Issues 
N Neurological Disorders 
O Obsessive Compulsive Disorder (OCD), Osteoarthritis 
P Parkinson’s Disease, PTSD, Psoriasis 
R Rheumatoid Arthritis 
S Speaking Impairment, Spinal Cord Injury, Stroke, Schizophrenia 
T Tourette Syndrome, Traumatic Brain Injury
V Vision Impairment 
W Walking Impairment, Wrist Fusion 

How to Apply

1. Fill out Part A (You or your legal representative)

  • Provide personal info and consent for CRA to contact your medical practitioner.
  • Apply online via CRA My Account or use the paper form.
  • Online applicants receive a reference number for their medical practitioner.

2. Medical practitioner completes Part B

  • Only certain professionals can certify based on the impairment type (e.g., doctors, nurse practitioners, optometrists, audiologists, occupational therapists).

3. Submit the form

  • Online: Through CRA My Account’s “Submit documents” tool.
  • By mail: Send to the correct tax centre (keep a copy).

Processing time: Typically 3–6 months (sometimes longer). Retroactive refunds can take an extra 1–3 months or, in some cases, even longer.

If Your Application Is Denied

You can:
  • Call CRA for clarification
  • Request a review with new medical info
  • File a formal objection within 90 days
  • Submit a new T2201 with a different medical practitioner

What Approval Can Mean for You

Financial relief:

  • Reduces federal income tax owed
  • Annual credit worth up to $1,500–$2,500 for adults; up to $3,000–$4,500 for minors (varies by province and tax paid)

Opens the door to other benefits:

  • Canada Disability Benefit (CDB)
  • Registered Disability Savings Plan (RDSP) and related grants/bonds
  • Child Disability Benefit
  • Canada Caregiver Credit
  • Home Accessibility Tax Credit
  • Additional provincial/territorial programs

Who can claim: The person with the disability or a supporting family member who helps with basic living needs.

Next Step:

Check CRA’s Disability Tax Credit page or connect with a reputable, low-cost or free advisor to see if you qualify.

Don’t know where to start? Contact us.