Disability Tax Credit (Canada): Money Back in Your Pocket

The Disability Tax Credit (DTC) is a non-refundable tax credit that reduces the amount of income tax you owe. If you or a family member have a severe and prolonged impairment, this could save you $1,500-$2,500+ per year. Who qualifies: - You have a severe and prolonged impairment in one of these categories: vision, hearing, walking, feeding, dressing, mental functions (including memory, problem-solving, adaptation to change), or life-sustaining therapy (at least 14 hours/week) - The impairment must last (or be expected to last) at least 12 months - A medical practitioner (doctor, nurse practitioner, optometrist, audiologist, etc. — depending on the category) must certify the impairment on Form T2201 What you get: - Federal: up to ~$1,500 in tax savings per year (2026) - Provincial: additional savings vary by province - If you can't use the full credit (because your income is too low), a supporting family member can claim it instead - The disability supplement (for those under 18) adds additional savings - You can claim retroactively for up to 10 previous years — if you qualified 3 years ago but never claimed, you could get a lump-sum refund for all three years How to apply: 1. Download Form T2201 (Disability Tax Credit Certificate) from the CRA website 2. Take it to your medical practitioner — they fill out the section for your specific impairment category 3. Submit the completed form to the CRA (you can do this online through My Account or by mail) 4. The CRA reviews and notifies you of approval (or denial — appeals are possible) 5. Once approved, the credit applies automatically to your tax returns going forward Critical things people don't know: - You don't need to be receiving CPP-D or provincial disability to qualify — the DTC is about the impairment, not your income - The DTC also unlocks other benefits: Registered Disability Savings Plan (RDSP) eligibility, Child Disability Benefit, and others - Mental health conditions (depression, anxiety, PTSD, ADHD) CAN qualify under 'mental functions' — this is underclaimed - The CRA denies many initial applications, especially for mental health — don't give up, request a reconsideration - An RDSP (if you qualify for the DTC) is one of the best savings tools in Canada — the government matches contributions up to 300%