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Disability Tax Credit Calculator

2025
Your Details
Your DTC Tax Savings

Total Annual Tax Savings

$1,893.75

Federal Credit

$1,409.66

Provincial Credit

$484.09

Federal vs Provincial
Federal DTC Calculation
Base disability amount$10,069.00
Total federal DTC amount$10,069.00
Multiplied by lowest rate (14%)x 14%
Federal tax savings$1,409.66
Frequently Asked Questions

Everything you need to know about the Disability Tax Credit

The Disability Tax Credit (DTC) is a non-refundable tax credit that reduces the amount of income tax you owe. It is designed for individuals with a severe and prolonged physical or mental impairment that markedly restricts their ability to perform basic activities of daily living. The DTC provides a federal tax credit of $9,872 multiplied by the lowest federal tax rate (15%), and a similar provincial credit. This can result in significant tax savings each year.
To apply, you need to complete Form T2201 (Disability Tax Credit Certificate). Part A is completed by the person with the disability (or their legal representative), and Part B must be completed by a qualified medical practitioner who can certify the nature and extent of the impairment. The form is submitted to the CRA for review. Processing typically takes 8 weeks but can take longer. You can submit the form online through My Account or by mail.
Eligible impairments include those that markedly restrict walking, dressing, feeding, speaking, hearing, seeing, or performing mental functions necessary for everyday life. The impairment must be severe enough to be present all or substantially all of the time (at least 90%). Conditions that may qualify include diabetes requiring insulin, blindness, deafness, mobility impairments, autism, Down syndrome, and various other physical and mental conditions.
Yes, you can claim the DTC retroactively for up to 10 years if the CRA determines that your disability began in a prior year. If your T2201 is approved with a start date in a previous year, you can request adjustments to your tax returns for each year covered. This can result in significant refunds. The CRA will reassess your returns and send you any additional credits owed, plus interest.
The Registered Disability Savings Plan (RDSP) is a long-term savings plan for people with disabilities. You must be approved for the DTC to open or contribute to an RDSP. The federal government provides matching grants (Canada Disability Savings Grant, up to $3,500/year) and bonds (Canada Disability Savings Bond, up to $1,000/year for low-income individuals). The RDSP has a lifetime contribution limit of $200,000 and investments grow tax-free until withdrawal.
Yes, if the person with the disability does not need the full DTC to reduce their taxes to zero, the unused portion can be transferred to a supporting family member such as a spouse, parent, grandparent, child, grandchild, sibling, aunt, uncle, niece, or nephew. The supporting person must have claimed an amount for the person on their tax return (such as the spouse amount, caregiver amount, or amount for an eligible dependant).
Yes, if the person with the disability is under 18 at the end of the tax year, an additional supplement of $5,758 (federal) is added to the base DTC amount. This supplement may be reduced if child care or attendant care expenses over $3,053 have been claimed. The child supplement is intended to help families with the additional costs of caring for a child with a severe disability.

CRA-Aligned: This calculator uses official CRA Disability Tax Credit amounts for the 2025 tax year. Provincial DTC amounts are approximate and may vary. The DTC is a non-refundable credit, so your tax savings depend on having sufficient tax liability. For a definitive assessment, contact the CRA.

More Information
Understanding the Disability Tax Credit in Canada

How the DTC reduces taxes for Canadians with disabilities

What is the Disability Tax Credit?

The Disability Tax Credit (DTC) is a non-refundable tax credit that reduces the income tax you owe. For 2025, the base amount is $9,872, which translates to a federal tax reduction of about $1,481 (15% of $9,872). If you are under 18, there is an additional supplement of up to $5,758, worth another $864 in tax savings.

Who qualifies for the DTC?

You may qualify if you have a severe and prolonged physical or mental impairment that markedly restricts your ability to perform basic activities of daily living. This includes seeing, walking, speaking, hearing, feeding, dressing, or mental functions. The impairment must last at least 12 months. A medical practitioner must certify your condition on Form T2201.

How do you apply for the DTC?

You need to have a qualified medical practitioner fill out Form T2201 (Disability Tax Credit Certificate) and submit it to the CRA. The CRA reviews the form and sends you a determination letter. Once approved, you can claim the DTC for the current year and request adjustments to previous years — up to 10 years back.

Can you transfer the DTC to a family member?

Yes. If you do not need all of the DTC to reduce your own tax to zero, you can transfer the unused portion to a supporting spouse, parent, grandparent, child, grandchild, sibling, aunt, uncle, niece, or nephew. The person claiming the transfer must have supported you financially during the year.

What other benefits does DTC eligibility unlock?

Being approved for the DTC opens the door to several other programs. These include the Registered Disability Savings Plan (RDSP), the Canada Workers Benefit disability supplement, the Child Disability Benefit, and certain provincial and territorial benefits. The RDSP alone can provide up to $90,000 in government grants and bonds over a lifetime.

What is the Registered Disability Savings Plan (RDSP)?

The RDSP is a savings plan for DTC-eligible Canadians. The federal government provides matching grants of up to $3,500 per year (Canada Disability Savings Grant) and bonds of up to $1,000 per year (Canada Disability Savings Bond) for low-income individuals. Contributions are not tax-deductible, but the investment grows tax-free until withdrawal.

How long does DTC approval last?

The approval period depends on your condition. For permanent conditions, the CRA may approve you indefinitely. For conditions that may improve, the CRA sets a review date. You will receive a letter stating the years you are eligible. When the review date approaches, you will need to submit a new Form T2201.

CRA-Aligned: Based on 2025 CRA rates and thresholds. For personal advice, speak to a qualified accountant or tax professional.

Disclaimer: This calculator provides estimates based on current CRA rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant before making financial decisions. Read our terms

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