[Spring 2025 GPS] Disability Tax Credit

The Disability Tax Credit (DTC) is a federal income tax credit that is available to individuals with disabilities. Among Canadians with disabilities, a staggering 84% are not claiming the disability tax credit. The DTC can decrease the amount of income tax that you or an eligible family member is required to pay; however, it is non-refundable, meaning you will not receive a refund if your tax owing is already $0.

The DTC is also part of the eligibility criteria for accessing other tax credits and benefits, such as the Home Accessibility Tax Credit, the Canada Caregiver Credit, and the Registered Disability Savings Account.

To qualify for the DTC, you can be of any age and a resident of Canada for tax filing purposes. A medical professional is required to verify that one or more of the following scenarios are applicable:

1) At least one of your daily activities is significantly limited.

2) You are significantly restricted in two or more of your daily activities.

3) Life-sustaining therapy is administered to you.

The activities of daily living are as follows:

• walking
• mental functions
• dressing
• feeding
• eliminating (using the toilet)
• hearing
• speaking
• vision

Further information can be found here: Government of Canada - DTC.

The application process can be done digitally now, and this video on the CRA YouTube channel explains how: DTC Online Application

Many lose the ability to perform one or more of the above activities as they age into their 60s and 70s, but most do not apply for the DTC. As a result, their spouses also miss out on claiming the Canada caregiver credit. Furthermore, children with certain types of diabetes or ADHD can also be eligible for the DTC, and this will translate into tax savings for their parents. Online applications are now available to make the application process easier for busy parents.