If you or a loved one is living with a severe and prolonged disability in Canada, there’s some good news for 2025.
The Canada Revenue Agency (CRA) has announced that eligible individuals—or their supporting family members—can receive up to $8,986 in tax refunds through the Disability Tax Credit (DTC). That’s a substantial amount of financial relief, and it could be a game-changer for many households.
Let’s look into who qualifies, how to apply, and what this credit really means for your wallet.
Table of Contents
Eligibility
The DTC isn’t just handed out—you have to meet some very specific criteria. The CRA uses strict medical and administrative guidelines to determine who qualifies. Here’s what you’ll need:
- A licensed medical professional must certify that the individual has a severe and prolonged physical or mental impairment
- The impairment must significantly affect basic daily activities—like walking, speaking, dressing, or feeding
- It must last (or be expected to last) at least 12 consecutive months
- You must complete and submit CRA Form T2201 for official review
Even if the person with the disability doesn’t have much income, a supporting family member (like a parent or spouse) can claim the DTC and still receive the refund.
Amounts
So how much can you actually receive through the DTC in 2025? Here’s a breakdown of the maximum potential values:
| 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 |
Keep in mind, these are upper limits. Your actual refund will depend on your total income, other credits claimed, and provincial differences. Some provinces offer extra supplements that could increase your refund even more.
Process
Ready to apply? Here’s how the Disability Tax Credit application works in 2025:
- Download Form T2201 (Disability Tax Credit Certificate) from the CRA website
- Have it certified by a licensed medical practitioner
- Submit it either online via your CRA MyAccount or by mail to the designated CRA office
- Wait for a Notice of Determination from the CRA. This will confirm approval or request further information
If you’re approved, you can also file for retroactive claims going back up to 10 years, which can seriously boost your total refund.
Benefits
The DTC isn’t just about reducing taxes. It opens the door to other valuable programs and benefits, including:
- Registered Disability Savings Plan (RDSP)
- Canada Workers Benefit – Disability Supplement
- Provincial disability and housing support programs
Plus, the refund itself can help pay for:
- Assistive devices and medical equipment
- Home modifications
- Travel for medical appointments
- Specialized caregiving services
It’s money that can make daily life easier and more manageable.
Importance
In 2025, with rising living and healthcare costs across Canada, the Disability Tax Credit is more critical than ever. It doesn’t just put money back in your pocket—it empowers people living with disabilities and the families who support them.
Whether you’re the one facing daily health challenges or you’re supporting someone who is, the DTC could help reduce stress and ease your financial burden.
Check your eligibility, talk to your doctor, and apply as soon as possible. You might be surprised just how much you can get back—especially if you’re also eligible for a 10-year retroactive claim.
FAQs
Who qualifies for DTC in 2025?
Those with certified, severe, and prolonged impairments.
What form is needed to apply?
Form T2201 must be completed and signed by a doctor.
Can I claim DTC for someone else?
Yes, supporting family members may claim the credit.
How much can I receive from the DTC?
You can receive up to $8,986 depending on eligibility.
Is the DTC a refundable tax credit?
No, it’s non-refundable, but it reduces taxes owed.
