Disabilities Resources

The federal tax system has a cluster of provisions for people with severe and prolonged impairments — the Disability Tax Credit, the RDSP, medical-expense rules, and renovation credits. This page summarises how they fit together.

Disability Tax Credit (DTC)

The DTC is the foundation provision. It is a non-refundable federal tax credit for individuals with a severe and prolonged impairment in physical or mental functions. Eligibility is established by submitting form T2201, which requires a qualified medical practitioner’s certification.

The federal credit amount is approximately $9,872 in 2025 for an adult, worth roughly $1,481 in federal tax reduction (15% × $9,872). A supplement applies for individuals under 18. Each province offers a parallel provincial DTC.

Approval can be retroactive: if your circumstances qualified in earlier years and you can document this, CRA may adjust the prior years on the same T2201 submission.

Why the DTC matters beyond the credit itself

DTC eligibility is a gateway to several other significant provisions:

RDSP eligibility (see below) — the most valuable consequence
Disability supports deduction for certain attendant care and impairment-related expenses
Larger medical-expense claims under certain rules
Home Buyers’ Plan eligibility without first-time-buyer status
Eligibility to transfer the unused DTC to a supporting family member

RDSP — Registered Disability Savings Plan

A long-term savings plan for DTC-eligible individuals. The key feature is the government top-up: the Canada Disability Savings Grant (CDSG) and Canada Disability Savings Bond (CDSB).

For full mechanics see the Registered Savings Plans page.

The combined grants and bonds can be very large (up to $90,000 in lifetime support for those who maximise the rules), making the RDSP one of the more powerful structures the Canadian tax system offers.

Medical expenses

DTC eligibility expands the universe of expenses that count as medical for the medical-expense credit, and removes the 3%-of-net-income threshold for some attendant-care expenses. The same medical-expense credit available to all taxpayers (see Non-Refundable Tax Credits) applies; the DTC-eligible individual benefits from broader eligibility within it.

A frequent planning point: a supporting family member can claim medical expenses paid on behalf of a DTC-eligible relative on the supporting family member’s return.

Home accessibility tax credit

A separate credit for renovations that improve accessibility for a qualifying individual (a senior over 65 or a DTC-eligible person). Up to $20,000 of eligible expenses generate a 15% credit (federal), worth up to $3,000.

Eligible work includes wheelchair ramps, walk-in tubs, grab bars, widened doorways, and similar modifications. The work must be a permanent improvement to the dwelling.