The Disability Tax Credit (DTC) in Canada – How to Apply and What Forms You Need

Living with a disability can create additional financial challenges. To help offset some of these costs, the Canadian government offers the Disability Tax Credit (DTC).

The DTC is a non-refundable tax credit that helps reduce the amount of income tax you or a supporting family member may have to pay. If approved, it can also unlock access to other important benefits.

Here’s what you need to know.

🔹 What Is the Disability Tax Credit (DTC)?

The DTC is designed to provide tax relief to individuals who have a severe and prolonged impairment in physical or mental functions.

The program is administered by the Canada Revenue Agency (CRA).

If approved, the DTC:

• Reduces income tax payable
• Can be transferred to a supporting family member
• May allow access to other programs such as:
  • Registered Disability Savings Plan (RDSP)
  • Canada Workers Benefit (Disability Supplement)
  • Child Disability Benefit

👤 Who Qualifies?

You may qualify if a medical practitioner certifies that you have a condition that:

• Is severe
• Is prolonged (has lasted or is expected to last at least 12 months)
• Markedly restricts your ability to perform basic activities of daily living

Qualifying impairments may relate to:

• Walking
• Speaking
• Hearing
• Mental functions (memory, problem-solving, adaptive functioning)
• Feeding or dressing yourself
• Life-sustaining therapy (such as insulin therapy for diabetes)

Each case is reviewed individually by the CRA.

📄 What Form Do You Need?

To apply, you must complete:

✅ Form T2201 – Disability Tax Credit Certificate

The T2201 form has two parts:

Part A – Completed by the Individual (or Legal Representative)

• Personal information
• Authorization
• Signature

Part B – Completed by a Medical Practitioner

Depending on the condition, this could include:

• Medical doctor
• Nurse practitioner
• Psychologist
• Occupational therapist
• Audiologist
• Optometrist
• Speech-language pathologist

The medical professional must certify the severity and duration of the impairment.

📬 How to Submit the Application

You can submit the completed T2201 form:

• Online through CRA My Account
• By mail to the CRA tax centre listed on the form

There is no government fee to apply. However, medical practitioners may charge a fee to complete Part B.

Processing times typically range from 8 to 16 weeks, depending on volume and complexity.

How to Apply for the Disability Tax Credit Online

In addition to the traditional paper application, the CRA now offers a fully digital way to apply for the Disability Tax Credit (DTC) using your CRA My Account. This method can make the process faster, easier, and avoids mailing delays — especially if you apply before filing your tax return.

Here’s how it works:

1. Sign in to Your CRA My Account

• Go to the CRA website and sign in to My Account (or register if you don’t have one yet).
• Once logged in, scroll to the “Benefits and credits” section.

2. Select “Apply for DTC”

• Click the “Apply for DTC” button to begin the digital application.
• This will generate a reference number once Part A is completed.

3. Complete Part A Online

• The person with the disability (or their legal representative) fills out Part A.
• You’ll enter basic personal information and indicate whether you want to transfer the credit to a supporting family member.

💡 Tip: If you’re applying for a transfer, include that person’s details in Part A — this can help avoid delays later.

Once Part A is complete, you will see a reference number. Save or print this — you’ll need it for the next step.

4. Give the Reference Number to Your Medical Practitioner

• Provide this reference number to the healthcare provider who will complete Part B on your behalf.
• The medical professional must use this reference to access the digital form and submit Part B online.

5. Part B Is Submitted Digitally by the Practitioner

The medical practitioner accesses the digital DTC form using your reference number and fills out their section of the form online. Once submitted electronically, the CRA receives the complete application — no mailing required

💰 How Much Is the DTC Worth?

The DTC is a non-refundable credit, meaning:

• It reduces taxes owed
• It does not create a refund if you owe no tax

The federal disability amount is indexed annually. Combined with provincial credits (like Ontario’s disability tax credit), the total annual tax savings can often range from $1,500 to $3,000+, depending on income and province.

If approved retroactively, you may be able to:

• Adjust prior years’ tax returns (up to 10 years)
• Receive refunds for previous years

🔁 Can the Credit Be Transferred?

Yes.

If the person with the disability does not have enough income to use the full credit, it may be transferred to:

• A spouse or common-law partner
• A parent, grandparent, child, grandchild, sibling, aunt, uncle, niece, or nephew (if they provide financial support)

📅 How Long Does Approval Last?

The CRA may approve the DTC:

• For a specific number of years, or
• Indefinitely (in cases of permanent impairment)

If approval has an end date, you must reapply before it expires.

⚠ Common Reasons Applications Are Denied

Applications are often denied because:

• The medical section lacks detail
• The impairment is not described as “markedly restricted”
• Duration is not clearly stated
• Supporting documentation is missing

Strong medical wording and accurate completion of Form T2201 are critical.

📌 Final Thoughts

The Disability Tax Credit can provide meaningful financial relief and open the door to additional government benefits.

If you or a family member may qualify, applying properly the first time can avoid delays and denials.

Professional guidance can help you:

• Determine eligibility
• Review the medical section before submission
• Request retroactive adjustments if approved
• Coordinate with RDSP planning