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Disability Tax Credit (DTC)

CRATax and accessibilityTax credit, not income

It's okay if you're not sure what applies to your situation yet.

In one sentence

The Disability Tax Credit () is a non-refundable federal tax credit that can reduce income tax payable by an approved person or, where conditions are met, a supporting family member.

Who this is usually for

You may wish to explore this program if the following appear relevant: A medical practitioner certifies the effects of the impairment in the relevant category.

What it may help with

Reduces federal income tax payable
provincial or territorial disability amounts may also apply.
May be transferred to a supporting family member when rules are met.

2 min read·Preparation time varies by situationScroll to explore, or reach out if you are unsure

What is this?

The Disability Tax Credit () is a non-refundable federal tax credit that can reduce income tax payable by an approved person or, where conditions are met, a supporting family member. Eligibility is based on the effects of a severe and prolonged impairment, not on diagnosis, employment status, income level or military service. Approval can also open access to other programs, including the RDSP and Canada Disability Benefit, subject to their separate rules.

The Disability Tax Credit is based primarily on severe and prolonged functional restrictions, not the diagnosis name alone. CRA makes the decision.

Use CRA terms accurately; never coach exaggeration.

Why someone might look at this benefit

A prolonged impairment markedly restricts a basic activity of daily living.

You require life-sustaining therapy or have significant cumulative limitations in two or more categories.

A supporting family member may be able to claim transferred amounts.

You want access to programs that use DTC approval as a gateway.

A prior application did not fully explain frequency, duration or combined effects.

Who might qualify?

You may wish to explore this program if the following appear relevant: A medical practitioner certifies the effects of the impairment in the relevant category. The impairment is prolonged, generally expected to last at least 12 months. The effects meet the marked-restriction, life-sustaining-therapy or cumulative-effects criteria. CRA, not the practitioner, makes the final eligibility decision. Only Canada Revenue Agency or the legally responsible decision-maker can determine eligibility.

Only the responsible organization can determine eligibility.

What this benefit may help with

Reduces federal income tax payable

provincial or territorial disability amounts may also apply.

May be transferred to a supporting family member when rules are met.

May allow adjustments to prior tax years covered by approval.

Acts as a gateway for RDSP, Canada Disability Benefit and some other measures.

Where this may fit in your transition

Stage 7

See the full Veterans Transition Roadmap

Typical process

Use CRA’s digital application or current Form T2201.

Complete Part A of Form T2201 or the digital application.

Ask an eligible medical practitioner to complete the relevant certification.

Submit to CRA.

CRA may request clarification from the practitioner.

Review the notice of determination, categories and approval years.

Claim the credit or request adjustments and explore linked programs.

If you receive a decision

Based on function, not diagnosis or employability alone; past years may be approved.

• Entitlement — whether the condition is related to service
• Assessment — the severity or percentage rating
• Effective date — when the benefit starts
• Calculation — how the amount was determined
• Approved services — what is covered and for how long
• Frequency or dollar limit — caps on treatment or services
• Reasons for denial — the specific basis for the decision

Every situation is different. Timelines vary based on the organization, the complexity of the application, and the volume of requests being processed.

What usually happens next

Application received

The organization typically sends a confirmation that your application was received.

Information requests

They may ask for additional medical, service, or financial records to support your application.

Review

A decision maker reviews your application, the evidence provided, and the applicable program rules.

Decision

You receive a written decision explaining the outcome, the reasons, and any review rights.

If approved

Benefits begin according to the program rules and the effective date stated in the decision.

If not approved

The decision letter explains why and describes your review or appeal options, including any deadlines.

Reassessment

If your condition or circumstances change, you may request a reassessment of the decision.

Reviews and appeals

Depending on the issue, you may request a departmental review or a hearing before the Veterans Review and Appeal Board.

Every situation is different. Timelines vary and are not guaranteed.

Evidence that may help

Time, frequency, duration, cumulative limits, support, safety and reliable performance in daily activities.

Not every document is required for every application. This list is for general awareness only.