Disability Tax Credit (DTC) Canada 2026 — How to Apply & How Much You Get

What is the Disability Tax Credit?

The Disability Tax Credit (DTC) is a non-refundable federal tax credit that reduces the income tax you owe if you have a severe and prolonged impairment in physical or mental functions. It is not a payment — it reduces your tax bill by up to $1,787 per year at the federal level, plus provincial credits.

More importantly, the DTC is the gateway to several other programs. Without DTC approval, you cannot open a Registered Disability Savings Plan (RDSP), claim the CCB disability supplement for a child, or access certain Home Buyers' Plan provisions for people with disabilities.

DTC is widely unclaimedThe CRA estimates that hundreds of thousands of eligible Canadians do not have DTC certification. Many people assume they do not qualify because their condition is not visible or because they manage daily life with difficulty — but "managing with difficulty" or with significant time and effort can qualify. If you have any severe limitation in daily functions, apply.

Who qualifies for the DTC?

You may qualify if you have a severe and prolonged impairment — meaning it has lasted or is expected to last at least 12 months — that markedly restricts your ability to perform basic activities of daily living. These include:

Speaking, hearing, or seeing
Walking or eliminating bodily waste
Feeding or dressing yourself
Mental functions necessary for everyday life (memory, problem-solving, goal-setting, judgment)
Life-sustaining therapy (e.g. insulin-dependent diabetes requiring therapy 14+ hours per week)
Cumulative effect of multiple significant restrictions that together are equivalent to a marked restriction

Mental health conditions qualifySevere depression, anxiety disorders, ADHD, autism spectrum disorder, bipolar disorder, and other mental health conditions can qualify for the DTC if they markedly restrict your mental functions necessary for everyday life. The key word is "markedly" — mild or moderate limitations typically do not qualify, but severe cases do.

What benefits does DTC approval unlock?

$1,787/yr

Federal tax credit

Direct reduction in federal income tax owing annually

Up to $90,000

RDSP grants & bonds

Registered Disability Savings Plan — government matches contributions

$3,173/yr

CCB disability supplement

Additional Canada Child Benefit for children with DTC approval

Provincial credits

Provincial tax credits

Most provinces offer additional disability credits on top of federal

How to apply — step by step

1

Download Form T2201
Get the Disability Tax Credit Certificate (T2201) from canada.ca or your CRA My Account. This is a two-part form — one section for you, one for your medical practitioner.
2

Have your doctor or specialist complete Part B
Your family doctor, specialist, nurse practitioner, psychologist, optometrist, audiologist, physiotherapist, or occupational therapist can certify the form depending on your condition. Choose the practitioner who knows your condition best. Be specific when describing your limitations — the more detail, the better.
3

Submit to the CRA
Submit online through My CRA Account (fastest — 8 weeks processing) or mail the completed T2201 to your CRA tax centre. You do not need to attach T2201 to your tax return — submit it separately.
4

CRA reviews and certifies
The CRA reviews your application and sends a Notice of Determination. If approved, your tax account is automatically updated. If denied, you have the right to object and appeal.
5

Claim retroactively on prior returns
If approved, you can amend up to 10 previous tax years to claim the DTC — potentially recovering thousands of dollars in overpaid taxes. Use Form T1-ADJ to adjust prior returns.

Retroactive claims can be significantIf you have had a qualifying condition for several years and are approved now, you can amend up to 10 years of tax returns. At $1,787 per year federally, plus provincial credits, a 10-year retroactive claim could recover $15,000–$25,000 in taxes depending on your province and tax rate.

Frequently asked questions

Is the DTC a one-time application?›

Not always. The CRA approves the DTC for a specific period — sometimes indefinitely for permanent conditions, or for a fixed period for conditions that may change. If your approval expires, you must reapply. Check your Notice of Determination to see the approved period.

Can I claim the DTC for my child?›

Yes. Parents or caregivers can claim the DTC on behalf of a dependent child under 18 who qualifies. The child's DTC also unlocks a supplement of up to $3,173/year in additional Canada Child Benefit. If the child has no income of their own, the full credit can be transferred to a supporting person.

What is the RDSP and how much can I receive?›

The Registered Disability Savings Plan (RDSP) is a long-term savings plan for people with DTC approval. The government contributes up to $3,500 per year in Canada Disability Savings Grants (matched to your contributions) and up to $1,000/year in Canada Disability Savings Bonds (for lower-income individuals, no contribution required). Maximum lifetime grant is $70,000 and maximum bond is $20,000.

What if my DTC application is denied?›

You can file a formal objection within 90 days of the denial notice. If the objection is denied, you can appeal to the Tax Court of Canada. Many initially denied applications succeed on appeal, especially for mental health conditions where the impact on daily functioning is well-documented. Consider asking your doctor to provide more detailed information about your worst days.

Can I claim the DTC if I receive CPP Disability?›

Yes — CPP Disability and the DTC are separate programs with different eligibility criteria. Receiving CPP Disability does not automatically qualify you for the DTC, and vice versa. However, if you qualify for CPP Disability, there is a good chance you also qualify for the DTC. Apply separately for each.

Does the DTC affect my other government benefits?›

No — DTC approval does not reduce any other benefit you receive. It is a tax credit that reduces your tax bill and unlocks additional programs. It does not affect OAS, GIS, CPP, CCB, provincial disability assistance, or employment insurance.