Big news for Canadians in 2025—the Disability Tax Credit (DTC) just got even more valuable. The Canada Revenue Agency (CRA) has confirmed that eligible individuals with disabilities, or their supporting family members, can now receive up to $8,986 in tax refunds.
With rising healthcare and living costs, this enhanced non-refundable credit offers more than just a tax break—it’s a vital support tool for Canadians with long-term impairments. Let’s walk through who qualifies, how much you can get, and how to apply.
Table of Contents
Eligibility
Not everyone qualifies for the DTC—it’s designed specifically for those with severe, long-lasting disabilities that impact daily life. Here’s what you need to qualify in 2025:
| Requirement | Details |
|---|---|
| Medical Certification | A doctor or specialist must certify your disability on Form T2201 |
| Duration | The condition must last (or be expected to last) at least 12 months |
| Daily Function | Must seriously restrict basic daily activities like dressing, feeding, walking, or speaking |
| Approval | CRA must approve your Disability Tax Credit Certificate (Form T2201) |
Even if the person with the disability has little to no income, a supporting family member—like a parent or spouse—can claim the credit and receive the refund on their behalf.
Refunds
So, how much can you actually receive in 2025?
| Component | Federal Amount | Provincial Average | Total Potential Refund |
|---|---|---|---|
| Base Disability Tax Credit | $9,428 | $5,135 | $14,563 |
| Refundable Amount | N/A | N/A | Up to $8,986 |
The final refund depends on your income, taxes owed, and whether any provincial top-ups apply. Some provinces offer extra disability credits, which can boost your overall return.
Application
Here’s how to apply for the Disability Tax Credit through the CRA:
- Download Form T2201 from the CRA website
- Get it signed by a qualified medical practitioner (doctor, psychologist, etc.)
- Submit the form online via your CRA MyAccount, or mail it to the CRA
- Wait for approval in the form of a Notice of Determination
Once approved, the DTC can be applied to this year’s taxes and retroactively—up to 10 years back. That could mean thousands in backdated refunds for eligible individuals.
Benefits
This tax credit doesn’t just reduce your income tax. It unlocks access to other major programs, including:
- Registered Disability Savings Plan (RDSP)
- Canada Workers Benefit – Disability Supplement
- Provincial disability benefits and housing assistance
- Help with medical travel, equipment, or support services
For many families, it also means the ability to hire needed care or make home modifications without going into debt.
Importance
With inflation and healthcare costs climbing, the Disability Tax Credit is more essential than ever. For those who qualify, it provides:
- Income tax relief
- Access to long-term savings plans
- Extra support for caregivers
- Better financial independence
The CRA’s update for 2025 confirms just how powerful this credit can be. Whether you’re living with a disability yourself or supporting someone who is, now is the time to act.
Make sure you check your eligibility, talk to your healthcare provider, and apply through the CRA. Don’t forget—you may also qualify for retroactive payments, and that could mean a much bigger refund than you expect.
FAQs
How much is the 2025 DTC refund?
Eligible individuals may receive up to $8,986 in tax refunds.
Who can claim the DTC?
The person with a disability or their supporting family member.
Is the DTC a refundable credit?
No, it’s non-refundable but reduces your income tax owed.
Can I claim DTC retroactively?
Yes, up to 10 years back if approved by CRA.
What form is needed to apply?
Form T2201, certified by a medical professional.
