Big news for 2025—if you’re living with a disability or supporting a loved one who is, you could get up to $8,986 back in tax refunds through the Disability Tax Credit (DTC). This CRA-approved tax credit is designed to ease the financial strain for those with severe and long-lasting impairments.
And the best part? Even if you don’t owe much tax, your family member might be able to claim it on your behalf.
Let’s walk through everything you need to know to qualify and get your refund.
Table of Contents
Eligibility
To qualify for the Disability Tax Credit in 2025, the CRA requires that you meet some very specific medical and administrative requirements. Here’s what needs to happen:
- A medical professional must certify that you have a severe and prolonged impairment—mental or physical
- This condition must restrict your ability to perform basic daily activities like walking, dressing, feeding, hearing, or speaking
- The impairment must last at least 12 months continuously
- You must complete Form T2201, which your doctor needs to sign and validate
If you’re approved but have low or no taxable income, a family member supporting you can claim the DTC instead and still receive the refund.
Refunds
The amount you’ll receive from the DTC in 2025 depends on both federal and provincial tax savings. Here’s a quick breakdown of the potential return:
| Component | Federal Amount | Provincial Average | Total Potential Refund |
|---|---|---|---|
| Base Disability Tax Credit | $9,428 | $5,135 | $14,563 |
| Refundable Amount (actual) | N/A | N/A | Up to $8,986 |
The actual refund will vary based on your income, how much tax you owe, and whether you qualify for provincial supplements. While the full credit value is over $14,000, most people receive refunds of up to $8,986.
Application
Applying for the Disability Tax Credit in 2025 is more straightforward than it sounds. Here’s a simple step-by-step:
- Get Form T2201 from the CRA’s website
- Have it certified by a doctor or licensed practitioner (depending on the condition)
- Submit it online through CRA MyAccount or mail it to the address provided on the form
- Wait for your Notice of Determination from CRA. They’ll let you know if you’re approved or if they need more info
If you’re approved, you may also be able to go back 10 years and claim the credit retroactively, which could mean an even bigger refund.
Benefits
The DTC isn’t just a one-time tax break—it can open doors to other valuable benefits. Here’s what being approved for the Disability Tax Credit can lead to:
- Registered Disability Savings Plan (RDSP)
- Canada Workers Benefit – Disability Supplement
- Provincial disability benefits like housing or utility assistance
Plus, the tax refund itself can help pay for critical things like mobility aids, medical travel, or home modifications that make daily life more accessible.
Importance
Why does this matter so much in 2025? Because the cost of living and medical expenses in Canada are rising fast. For people managing long-term conditions, the DTC helps soften the blow and can mean the difference between financial stability and constant stress.
And with the CRA confirming refunds of nearly $9,000, there’s never been a better time to check if you or your loved ones qualify.
If you haven’t looked into the Disability Tax Credit before, start now. Speak to your doctor, grab the forms, and apply. Whether it’s help with taxes this year or retroactive refunds from the last decade, the DTC can make a big difference.
FAQs
Who qualifies for the DTC in 2025?
Those with certified severe and prolonged impairments lasting 12 months.
How much is the DTC refund in 2025?
Eligible Canadians may get up to $8,986 in total refunds.
Can I claim the DTC for a family member?
Yes, if they’re approved and have low or no income, you can claim it.
What form is needed for DTC?
Form T2201, certified by a medical practitioner, is required.
Can I claim the DTC retroactively?
Yes, you may be eligible to claim it for up to 10 years back.
