Frequently asked questions
Is the DTC a monthly payment?
No. The DTC is a non-refundable tax credit. It reduces federal tax payable on a tax return, and any unused part is not paid out. If you need a monthly payment, you are thinking of a benefit program, such as the Canada Disability Benefit, which is a separate program with its own rules and is not the subject of this site.
How is the DTC different from the Canada Disability Benefit?
The DTC is a tax credit claimed on a return after CRA approval of Form T2201. The Canada Disability Benefit is a federal benefit paid to eligible people with disabilities, subject to its own eligibility rules, income tests, and payment periods. DTC approval may be relevant to the benefit's rules, but the two programs are not the same, and approval for one does not automatically mean approval for the other.
Does my income affect whether I qualify?
No. Eligibility is decided on the severity and duration of the impairment's effects, not on income or employment. Income affects only how much tax the credit can reduce in a given year, and therefore how much of the credit is usable directly versus transferable to a supporting family member.
Can I qualify if I work?
Yes, if the functional test is met. The CRA has said that eligibility is not based on an inability to work, to do housekeeping, or to engage in recreational activities. Many people who work, with accommodations or reduced hours, meet the marked-restriction test for a basic activity of daily living.
Can a child qualify?
Yes. There is no minimum age for the DTC, and a supporting parent claims the child's amount, including the under-18 supplement where it applies. The supplement is reduced where child care or attendant care expenses claimed for the child exceed the thresholds for the year, and eliminated once they exceed the higher threshold: for 2025, $3,464 and $9,378 respectively.
How much is the DTC worth?
For the 2025 tax year, the federal disability amount is $10,138 for an adult, plus up to $5,914 for a person under 18, giving a combined $16,052. At the blended 2025 lowest federal rate of 14.5%, the federal credit is up to $1,470.01 for an adult and up to $2,327.54 for a child, before any provincial or territorial credit, and limited in each case by the tax actually payable.
Do I have to reapply every year?
No, but approval is not necessarily permanent. The notice of determination states the approved period. When that period ends, a new certificate is needed to keep claiming. If your condition improves so that you no longer meet the test, you must tell the CRA.
What if the CRA refuses my application?
Read the notice of determination, ask for a second review with any new medical information, and remember the formal objection deadline: no later than 90 days after the notice is mailed. A fresh application with better functional evidence is also possible. The refusals and appeals page explains each route.
Does it cost anything to apply?
The CRA charges nothing. A practitioner may charge a fee for completing Part B, which may be claimable as a medical expense. Be cautious about firms that charge a percentage of a refund; compare their fee with the cost of a well-prepared application made directly.
Do I need the DTC to open an RDSP?
Yes. DTC approval is required to open a Registered Disability Savings Plan. The RDSP page explains the grants of up to $3,500 a year and bonds of up to $1,000 a year, the lifetime limits, and the age limits that make early application worthwhile.
Sources: Canada Revenue Agency, Disability tax credit pages, "Demystifying the disability tax credit," and guide RC4064 on canada.ca; Employment and Social Development Canada, RDSP pages on canada.ca.
Photo credits: dt31.jpg — k; dt32.jpg — k; dt33.jpg — k