The Disability Tax Credit, in plain English
The Disability Tax Credit, usually called the DTC, is a federal non-refundable tax credit for Canadians who live with a severe and prolonged impairment in physical or mental functions. It does not send you a monthly payment. It lowers the federal income tax you owe, and if you do not owe enough tax to use it all, the unused part can sometimes be transferred to a spouse, common-law partner, or another supporting family member. That one distinction explains most of the confusion about the credit, so this site starts with it and returns to it often.
The DTC in one paragraph
A person whose impairment is severe and prolonged, and who is certified on Form T2201 by a qualified medical practitioner, may claim a federal disability amount on their tax return. For the 2025 tax year that amount is $10,138 for a person aged 18 or older, plus a supplement of up to $5,914 for a person under 18 at the end of the year. The amount is multiplied by the lowest federal tax rate, which was a blended 14.5% for 2025, so the federal tax saving for an adult was up to $1,470.01. Provincial and territorial amounts sit on top of the federal credit and vary by province or territory. Approval can also reach back up to 10 years, and it is the required gateway to opening a Registered Disability Savings Plan (RDSP).
What the DTC is not
The DTC is not a cash benefit, and it is not the Canada Disability Benefit. The Canada Disability Benefit is a separate federal benefit with its own rules and payment periods, and it is covered on a separate site in this network. The DTC is also not a disability pension: receiving Canada Pension Plan disability benefits, Quebec Pension Plan disability benefits, workers' compensation, or a provincial disability payment does not by itself make you eligible for the DTC, because every program applies its own test. The DTC test looks at how an impairment restricts basic activities of daily living, not at whether you can work, not at your income, and not at a diagnosis name on its own.
Who this site is for
This site is for adults applying for themselves, parents applying for a child, and family members who support a person with an impairment and may claim a transferred amount. It explains the eligibility test in plain language, walks through Form T2201 part by part, works through the dollar figures with labelled examples, and covers transfers, retroactive claims, the RDSP link, and what to do if the Canada Revenue Agency (CRA) says no. Every dollar figure is in Canadian dollars (CAD), every date is written in Canadian style, and every worked example states its assumptions, because a tax credit example without assumptions is easy to misread.
Which year's figures are used here
The figures on this site are the CRA amounts for the 2025 tax year, the latest year published on the CRA's claiming page when this site was checked on 25 October 2026. Amounts are indexed, so the figure for a later tax year will differ. If you are filing for a year after 2025, confirm the indexed disability amount and the lowest federal tax rate on canada.ca before you file. No figure on this site should be treated as the amount for a year the CRA has not yet published.
How this site is organized
Start with what it is for the mechanics of a non-refundable credit, then who qualifies for the severe-and-prolonged test and the ten impairment categories. Form T2201 explains Part A and Part B and which practitioner certifies which category. Credit amounts gives the 2025 figures and three worked examples. Transfer covers spouses, relatives, and the lines on the return. Retroactive claims explains the 10-year window and the table of past amounts. RDSP link explains why approval matters beyond the tax return. Refusals and appeals covers the common reasons for refusal and the 90-day objection deadline. How to claim is the step-by-step checklist, and FAQ answers the questions people ask most.
Three misunderstandings, cleared up at the start
The $10,138 figure is not a payment. It is the disability amount used to compute the credit. The tax saving is that amount multiplied by the lowest federal rate, which is why the federal saving for 2025 was about $1,470 for an adult, before any provincial credit. Being unable to work is not the test. The CRA decides eligibility on the effects of an impairment on basic activities of daily living, and people who work, sometimes with accommodations or reduced hours, can qualify. A diagnosis alone is not enough. The form must show, in the practitioner's words, how the impairment markedly restricts an activity, how much of the time, and for how long.
Sources: Canada Revenue Agency, Disability tax credit pages on canada.ca (claiming the DTC; disability-related information, guide RC4064; demystifying the DTC); Employment and Social Development Canada, RDSP pages on canada.ca; Income Tax Act, section 118.3.
Photo credits: dt01.jpg — k; dt02.jpg — k; dt03.jpg — k