The Canada Revenue Agency (CRA) has confirmed major updates to the Disability Tax Credit (DTC) for 2025. Eligible Canadians could receive refunds of up to $9,428, with additional amounts for children and dependents. This change aims to ease the financial burden for people living with long-term disabilities while improving access to other government benefits.
Overview
The Disability Tax Credit is a non-refundable tax credit that reduces the amount of income tax payable for Canadians with prolonged impairments. It also helps caregivers of eligible individuals.
The 2025 update is more than a simple adjustment — it is part of a larger federal effort to address the rising cost of living and healthcare for people with disabilities.
Eligibility
To qualify for the updated Disability Tax Credit in 2025, you must meet CRA’s requirements:
- The impairment must be expected to last at least 12 months.
- It must significantly restrict daily activities such as speaking, walking, feeding, dressing, or mental functions.
- A licensed medical practitioner must complete the T2201 Disability Tax Credit Certificate.
- Conditions include autism, diabetes, multiple sclerosis, mental health disorders, and other chronic impairments.
If approved, you may also be eligible to claim the credit retroactively for up to 10 years, which could lead to substantial backdated refunds.
Refund Breakdown for 2025
| Category | Amount (CAD) |
|---|---|
| Base Federal DTC | Up to $9,428 |
| Supplement for Persons Under 18 | Additional $5,500 |
| Provincial/Territorial Credits | Varies by region |
Caregivers may also receive extra credits depending on their situation. The total refund can differ based on location, dependent status, and age.
Linked Benefits
Approval for the DTC can make you eligible for other financial programs, such as:
- Registered Disability Savings Plan (RDSP)
- Canada Workers Benefit (CWB) Disability Supplement
- Child Disability Benefit
- Medical expense deductions
When combined, these supports can greatly reduce the financial strain of living with a disability.
Steps to Apply
- Download the T2201 form from the CRA website.
- Have a medical practitioner complete the medical section.
- Submit the form to CRA online or by mail.
- Track your application through your CRA account.
- Keep supporting documents ready for review if requested.
- Consider working with a tax professional to claim retroactive benefits.
Even if you were denied before, the updated 2025 criteria may improve your chances of approval.
The 2025 Disability Tax Credit is a valuable opportunity for eligible Canadians to reduce their tax load and gain access to further support programs. Preparing your documentation early will help you secure the maximum benefit available.
FAQs
What is the max DTC refund in 2025?
Up to $9,428 federally, plus possible supplements.
Can I claim DTC retroactively?
Yes, for up to 10 years if eligible.
Do children get extra DTC benefits?
Yes, up to an additional $5,500 per year.
What form is needed for DTC?
Form T2201 completed by a medical practitioner.
Does DTC link to other programs?
Yes, it can unlock RDSP, CWB supplement, and more.
