Disability Tax Credit (DTC)
Helping you access the support you've earned.
The Disability Tax Credit (DTC) is one of the most valuable and underutilized credits in the Canadian tax system. If you or a family member has a significant physical or mental impairment that affects daily life, you may qualify for thousands of dollars in non-refundable tax credits — and potentially retroactive refunds going back up to 10 years. We guide you through the application process from start to finish.
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Substantial Non-Refundable Tax Credit
The federal DTC for 2024 is worth $9,428 — translating to approximately $1,414 in federal tax reduction at the 15% rate. The Ontario provincial supplement adds further savings. If you have not been claiming the DTC for years you qualified, retroactive refunds can be significant.
Retroactive Refunds Up to 10 Years
If you were approved for the DTC but did not claim it in prior years, or if you are newly approved, CRA allows retroactive adjustments to prior tax returns. We file T1-ADJ requests for each qualifying year, potentially recovering thousands of dollars in over-paid taxes.
Access to the RDSP
DTC approval is the gateway to the Registered Disability Savings Plan (RDSP) — one of the most powerful savings vehicles in Canada. The government provides matching Canada Disability Savings Grants of up to $3,500/year and Canada Disability Savings Bonds of up to $1,000/year for eligible low-income families.
Child Disability Benefit
Families receiving the Canada Child Benefit (CCB) with a DTC-eligible child also receive the Child Disability Benefit (CDB) — a monthly tax-free supplement. Maximizing your DTC claim also maximizes these benefit payments.
Frequently Asked Questions
What conditions qualify for the Disability Tax Credit?
To qualify, a person must have a severe and prolonged impairment in physical or mental functions. The impairment must markedly restrict at least one basic activity of daily living (vision, speaking, hearing, walking, bowel or bladder functions, feeding, or dressing) or significantly restrict two or more activities in combination. Mental health conditions including severe depression, anxiety disorders, and autism spectrum disorder can qualify when appropriately documented by a qualified practitioner. A qualified medical practitioner must certify the impairment on Form T2201.
How far back can I claim the DTC retroactively?
Once CRA approves your T2201 application and certifies the start date of your impairment, you can request adjustments to prior tax returns for up to 10 years back from the current year. We file T1-ADJ (T1 Adjustment Requests) for each eligible year. The amounts vary based on your income and tax payable in each year.
Can I transfer the DTC to a family member?
Yes. If the person with the disability does not have enough tax payable to use the full DTC credit, the unused portion can be transferred to a supporting family member — such as a parent, spouse, common-law partner, or sibling — who financially supports that person. The transfer rules and eligible amounts depend on the relationship and the support provided. We calculate the optimal transfer amount when preparing your returns.
What is the Registered Disability Savings Plan (RDSP)?
The RDSP is a long-term savings plan for Canadians eligible for the DTC. The government provides matching grants (Canada Disability Savings Grant) of up to $3,500/year for contributions up to $1,500, depending on family income. Low-income families may also receive the Canada Disability Savings Bond of up to $1,000/year without any contribution required. The lifetime contribution limit is $200,000 and the plan grows tax-sheltered. RDSP approval requires a valid DTC certificate.
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