Good news for eligible Canadians: the Disability Tax Credit (DTC) has seen a significant boost in value this year.
The federal base amount now stands at $9,428, with an additional $5,758 supplement available for individuals under 18.
If you’ve made qualifying contributions, you could claim retroactive refunds for up to 10 years—potentially totaling tens of thousands of dollars.
Disability Tax Credit Breakdown: Federal & Child Supplement
| Category | Amount (CAD) |
|---|---|
| Base Federal Disability Tax Credit (2025) | $9,428 |
| Child Supplement (under 18) | +$5,758 |
| Combined Maximum (Child) | $15,186 |
| Retroactive Claim Period | Up to 10 years |
Who Can Apply?
The Disability Tax Credit is designed for individuals with severe and prolonged impairments that restrict daily living activities (e.g. walking, feeding, speaking), lasting at least 12 months. To qualify, you must:
- Obtain Form T2201, completed and signed by a qualified medical professional.
- Submit the form to CRA and receive Notice of Determination approval.
- Once approved, you (or a supporting family member) can claim the credit—even if the individual has little or no taxable income.
How Much Refund Can You Receive?
While the Disability Tax Credit is technically non-refundable, once applied to your taxes, you may receive a refund of up to $9,428—depending on your taxable income and provincial credits.
If under 18, the total deductible credit can reach $15,186, providing significant financial relief.
Applying and Claiming Retroactively
- Submit your T2201 form via CRA’s online portal or by mail.
- Upon approval, the credit applies to the current tax year and can be backdated up to 10 years.
- Request adjustments to past tax returns to secure retroactive tax rebates—potentially resulting in a substantial lump-sum refund.
Additional Benefits Linked to DTC Approval
Qualifying for the Disability Tax Credit opens doors to other valuable programs:
- Registered Disability Savings Plan (RDSP) — long-term savings with government matching.
- Canada Disability Benefit (CDB) — additional monthly financial support.
- Child Disability Benefit (CDB) — extra support for children under 18.
- Disability supplement under the Canada Workers Benefit (CWB).
These programs enhance long-term security and assistance for individuals and families managing disabilities.
The 2025 Disability Tax Credit enhancements not only increase the base federal amount to $9,428, but also add significant support for children under 18—making it more valuable than ever.
If you or someone in your family may qualify, applying now can lead to meaningful tax relief and access to vital disability supports.
Prioritize completing Form T2201, submit it promptly, and check if retroactive credits can be leveraged to maximize your benefits.
FAQs
Can I still receive a refund if my income is low?
Yes. If your taxable income is minimal, a family member can claim the Disability Tax Credit and access the refund on your behalf.
Is the child supplement automatically included?
Yes. If the individual with a disability is under 18 and eligible, the child supplement is automatically added.
How far back can I apply for retroactive credit?
CRA allows retroactive claims for up to 10 years, unlocking potential back payments from previous tax years.