Plain-language guide
The Disability Tax Credit, explained.
What it is, what it is worth, who qualifies, and how to apply — without paying anyone a percentage of it. Figures below are for the 2025 tax year and come from the Canada Revenue Agency.
What it is
The Disability Tax Credit (DTC) is a non-refundable tax credit. It helps a person with a severe and prolonged impairment — or a supporting family member — reduce the income tax they have to pay. Because it is non-refundable, it reduces tax owing; it does not, on its own, pay out to someone with no tax payable. Its real power for most people is twofold: it can be transferred to a supporting relative, and it can be applied to up to ten previous tax years.
What it is worth
For 2025 the federal disability amount is $10,138. A person who was under 18 at the end of the year may also claim a supplement of $5,914, for a combined $16,052. These are the amounts the credit is calculated from — the federal credit is worth 15% of them, and most provinces and territories add a further credit of their own on top.
| Tax year | Disability amount | Supplement (under 18) |
|---|---|---|
| 2025 | $10,138 | $5,914 |
| 2024 | $9,872 | $5,758 |
| 2023 | $9,428 | $5,500 |
| 2022 | $8,870 | $5,174 |
| 2021 | $8,662 | $5,003 |
| 2020 | $8,576 | $5,003 |
| 2019 | $8,416 | $4,909 |
| 2018 | $8,235 | $4,804 |
| 2017 | $8,113 | $4,733 |
| 2016 | $8,001 | $4,667 |
If you are approved and the CRA reassesses several earlier years at once, each of those years can generate a refund. Ten years of adjustments is how a single approval turns into a five-figure cheque — and why a firm charging 25–30% of it stands to make thousands.
Who may qualify
Eligibility is based on the effect of an impairment on daily life, not on a diagnosis. A medical practitioner must certify that you have a severe and prolonged impairment in physical or mental functions. The CRA assesses this in these categories:
- Walking
- Mental functions necessary for everyday life
- Dressing
- Feeding
- Eliminating (bowel or bladder functions)
- Hearing
- Speaking
- Vision
- Life-sustaining therapy
- The cumulative effect of significant restrictions in two or more of the above
“Prolonged” generally means the impairment has lasted, or is expected to last, at least 12 continuous months. The cumulative-effects category matters more than people realise: someone who is not markedly restricted in any single category may still qualify on the combined effect of several.
Each category, the two thresholds the CRA actually applies, and which practitioners can certify which impairment are set out on our eligibility page.
How to apply
You apply using Form T2201, Disability Tax Credit Certificate. There are two ways to do it, and one rule that catches people out: Part A and Part B must both be submitted the same way — you cannot mix digital and paper.
The digital route
You fill out Part A
The person with the impairment, or their legal representative, completes Part A of the digital application online. You can ask the CRA at this point to automatically adjust your previous years’ returns if you are approved.
You get a reference number
A confirmation page gives you a reference number. It is valid for 12 months and can be used only once. Guard it — your practitioner cannot submit Part B digitally without it.
Your practitioner files Part B
You give them the reference number. They use the CRA’s digital application for medical practitioners to complete and submit Part B directly.
The paper route
Your medical practitioner fills out Part B, prints it, and signs it. You then fill out and sign Part A, and mail the completed Form T2201 to your CRA tax centre. If legal documents (such as a representative authorisation) have not previously been sent to the CRA, include them with the form to avoid delays.
The CRA charges nothing for the form or the application. Your medical practitioner may charge a fee for completing their portion, and you are responsible for paying it. Two things worth knowing: that fee may be claimable as a medical expense on your tax return, so keep the receipt — and from September 2026 a fixed $150 supplemental amount can be paid to Canada Disability Benefit recipients to help cover the cost of getting certified.
A practitioner’s fee for their professional time is an entirely different thing from a firm taking 25–30% of your refund. The difference matters.
Not sure which practitioner can certify your impairment, or how long the CRA is taking? The list of who can certify what is on our eligibility page, and the CRA publishes current DTC processing times on its How to apply page.
After you apply
The CRA reviews the application and sends a notice of determination setting out the decision and, if you were refused, the reason. If you are approved and asked for prior years to be adjusted, reassessments follow — and that is where a lump-sum refund comes from.
If you are refused, you have two routes and both are free: request a review within one year, or file a formal objection within 90 days of the notice. We have written up both in detail here.
What DTC approval unlocks
For many people the credit itself is not the biggest prize. Approval is the eligibility test for the Canada Disability Benefit (up to $200 a month), the child disability benefit (up to $3,480 a year per eligible child), and the Registered Disability Savings Plan — where government grants run to $3,500 a year and bonds of up to $1,000 a year are paid to low-income Canadians without requiring any contribution of their own.
See the full map of what approval opens up →
Common questions
I was turned down before. Is that the end of it?
No. A large share of refusals come down to how the impairment was described rather than whether the person qualifies. You can ask the CRA for a review, provide further information from your practitioner, or file a formal objection. We can help you understand which route fits your situation.
I do not pay much income tax. Is it still worth applying?
Very often, yes. The credit can be transferred to a supporting spouse, common-law partner, or other supporting relative, and — importantly — DTC approval is what makes you eligible for the Canada Disability Benefit and the Registered Disability Savings Plan, neither of which depends on you owing tax.
Do I need to pay a company to apply?
No. Applying is free, the form is free, and you are allowed to apply yourself. Firms that offer to do it for a percentage of your refund are offering convenience, not access. If you want help, we provide it at no cost.
How long does a decision take?
It varies with the CRA’s processing times and whether they ask your practitioner for more information. Check current service standards on canada.ca — we would rather point you at the live figure than quote one here that goes stale.
This page is a plain-language summary, not tax advice, and the amounts are indexed each year. The Canada Revenue Agency is the authority on eligibility and on current figures. Start at the CRA’s Disability tax credit pages.