For Canadians living with serious, prolonged disabilities, the CRA Disability Tax Credit (DTC) 2025 continues to provide important financial relief.
Though non-refundable, this credit helps reduce the amount of income tax owed, offering meaningful savings for eligible individuals and their families.
This guide covers everything you need to know about the CRA Disability Tax Credit 2025—including eligibility, claim amounts, and how to transfer unused credits to supporting family members.
CRA Disability Tax Credit 2025
| Feature | Details |
|---|---|
| Program Name | Disability Tax Credit (DTC) |
| Administered By | Canada Revenue Agency (CRA) |
| Tax Year | 2025 |
| Type of Credit | Non-refundable tax credit |
| Purpose | Reduce tax owed by Canadians with disabilities |
| Application Required | Yes (Form T2201) |
| Transferable Credit | Yes, to supporting family members |
| Claim Amount (18+ years) | $9,872 |
| Claim Amount (Under 18) | $9,872 + $5,758 supplement = $15,630 |
| Filing Requirement | Must file a tax return |
| Official Website | www.canada.ca |
Eligibility for the CRA Disability Tax Credit 2025
To qualify for the DTC in 2025, applicants must meet the following conditions:
1. Medical Criteria
- You must have a severe and prolonged physical or mental impairment.
- The condition must be expected to last for 12 months or more.
- It must significantly restrict at least one of the following:
- Walking
- Feeding or dressing
- Speaking or hearing
- Seeing
- Mental functions (e.g. problem-solving, memory)
- Or require life-sustaining therapy
2. Medical Certification
- A qualified medical practitioner (e.g., physician, nurse practitioner, psychologist, optometrist) must fill out Form T2201, certifying the disability and its impact on daily life.
3. Canadian Residency
- The applicant must be a resident of Canada for tax purposes during the applicable year.
4. Caregiver or Family Member
- If the person with the disability does not have taxable income, the credit can be transferred to a supporting family member who provides daily care or financial assistance.
How Much is the Disability Tax Credit in 2025?
The DTC amount is adjusted annually for inflation. The credit claimed depends on the recipient’s age:
| Resident Category | Base Amount | Child Supplement | Total Credit (if under 18) |
|---|---|---|---|
| Aged 18 and older | $9,872 | – | $9,872 |
| Under 18 years old | $9,872 | $5,758 | $15,630 |
Note: These figures are based on the 2024 base year and are expected to remain similar in early 2025 unless adjusted for inflation.
When Can You Claim the DTC?
The Disability Tax Credit is claimed when filing your 2024 tax return in 2025. CRA recommends submitting Form T2201 early to avoid processing delays.
Once approved, the DTC can apply for up to 10 years retroactively, depending on your eligibility history.
The CRA Disability Tax Credit 2025 plays a crucial role in reducing the tax burden for individuals facing serious and prolonged disabilities. While it doesn’t result in direct payments, it offers meaningful savings by lowering income taxes owed.
Eligible Canadians—or their family caregivers—should ensure Form T2201 is submitted and approved before tax time.
With up to $15,630 in credits for minors and $9,872 for adults, the DTC remains one of Canada’s most impactful tax relief measures for people living with disabilities.
Stay proactive, gather the necessary documentation, and consult with a tax professional if you’re unsure about eligibility or how to apply.
FAQs
What is the purpose of the Disability Tax Credit (DTC)?
The DTC helps reduce the income tax owed by Canadians with severe and long-term disabilities, offering essential financial relief.
Can the credit be transferred to a caregiver or family member?
Yes. If the individual with a disability has no taxable income, the unused portion of the credit can be transferred to a supporting family member.
Is the DTC a refundable benefit?
No. The DTC is non-refundable, meaning it only reduces income tax owed. If you owe no taxes, you won’t receive a refund.