In a major update for 2025, the Canada Revenue Agency (CRA) has confirmed that eligible Canadians living with a disability—or their supporting family members—may receive up to $8,986 in tax refunds through the Disability Tax Credit (DTC).
This non-refundable tax credit is aimed at easing the financial burden for those facing long-term mental or physical impairments.
Not only does the DTC lower your income tax bill, but it can also open doors to other benefits like the RDSP and disability supplements.
Table of Contents
Eligibility
To qualify for the Disability Tax Credit in 2025, you’ll need to meet specific CRA criteria. These are based on the severity and duration of the impairment.
Here’s what’s required:
- A qualified medical practitioner must certify the condition
- The impairment must significantly restrict your ability to perform basic daily tasks like dressing, eating, or walking
- The condition must be prolonged—lasting, or expected to last, at least 12 consecutive months
- CRA Form T2201 (Disability Tax Credit Certificate) must be filled out and submitted
If the disabled person doesn’t earn enough to use the credit, a supporting relative (like a parent, spouse, or sibling) may claim it instead.
Refund
So how much could you really get back? While the DTC itself is a non-refundable credit, it reduces the amount of tax you owe—and in some cases, leads to substantial refunds.
Here’s the 2025 breakdown:
| 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 |
Note: The final refund amount depends on your income, the taxes you’ve already paid, and any other credits or deductions you’re claiming. Some provinces also provide extra disability tax credits that can push your refund even higher.
Application
Applying for the DTC is a one-time process unless your condition is temporary or subject to review. Here’s how to do it:
- Download CRA Form T2201
- Take it to your doctor, who must complete the medical section
- Submit it through your CRA My Account or mail it to the tax center
- Wait for your Notice of Determination from the CRA
Once approved, the CRA may apply the credit retroactively for up to 10 years. That could result in thousands of extra dollars in backdated refunds.
Importance
The DTC isn’t just about lowering your tax bill—it can help you handle real-world expenses tied to living with a disability. Many people use their refunds to help with:
- Assistive devices like wheelchairs or communication aids
- Home renovations for accessibility
- Medical travel and transportation
- Support services not covered by insurance
Getting DTC approval also makes you eligible for:
- The Registered Disability Savings Plan (RDSP)
- Disability supplement for the Canada Workers Benefit
- Provincial disability supports and housing programs
Planning
To make the most of the DTC in 2025, here’s what you should do:
- Talk to your doctor early in the year
- Make sure your CRA My Account is active and updated
- File your taxes even if you have low income—this activates most benefits
- Ask about retroactive DTC claims for previous years
The Disability Tax Credit can offer real financial breathing room and help Canadians living with disabilities live more independently. With the CRA confirming refunds of up to $8,986, there’s no better time to apply.
FAQs
How much is the DTC refund in 2025?
Up to $8,986, depending on income and taxes paid.
Who can apply for the DTC?
Anyone with a severe, prolonged impairment certified by a doctor.
Can a family member claim the DTC?
Yes, if the disabled person has little or no income.
Can I claim the DTC retroactively?
Yes, up to 10 years back if approved.
What form is used for the DTC?
Form T2201 – Disability Tax Credit Certificate.
