Living with a disability often comes with additional expenses that place a burden on Canadian households.
To ease this, the Canada Revenue Agency (CRA) provides the Disability Tax Credit (DTC)—a vital financial relief measure.
In 2025, this program continues to help disabled Canadians and their families by reducing their annual tax liability and introducing new supportive benefits.
What Is the CRA Disability Tax Credit?
The Disability Tax Credit (DTC) is a non-refundable tax credit. Instead of issuing direct cash, it lowers the amount of federal income tax owed.
This means eligible individuals and families keep more of their earnings, balancing extra costs linked to medical care, mobility, or daily living challenges.
For families with children under 18, the DTC also provides a supplement, which makes the benefit even more meaningful.
CRA Disability Tax Credit 2025 Overview
| Authority | Canada Revenue Agency (CRA) |
|---|---|
| Program | Disability Tax Credit (DTC) |
| Year | 2025 |
| Beneficiaries | Canadians with certified disabilities |
| Annual Amount | Adults: $9,872 / Children: $15,630 |
| Frequency | Annual tax relief |
| Renewal | Every 5 years (in most cases) |
| New Addition | Canada Disability Benefit ($200/month from July 2025) |
| Category | Canada Finance & Benefits |
Eligibility Requirements
To qualify for the DTC, applicants must meet specific criteria:
- Be a Canadian resident for tax purposes.
- Have a severe and prolonged physical or mental impairment, expected to last at least 12 months.
- The condition must significantly restrict daily living activities (such as mobility, self-care, communication, or mental functions).
- A medical practitioner must certify the impairment on Form T2201.
- The CRA reviews each case individually, based on medical records and supporting evidence.
CRA Disability Tax Credit Amounts
The amounts available for 2025 remain significant, offering families meaningful relief:
| Category | Amount |
|---|---|
| Adults (18 years and older) | $9,872 |
| Children (under 18 years, including supplement) | $15,630 |
If the applicant does not owe income taxes, the unused portion of the credit may be transferred to a supporting family member, ensuring no value is lost.
New Canada Disability Benefit 2025
In addition to the tax credit, the federal government is introducing the Canada Disability Benefit (CDB):
- Pays $2,400 annually (or $200 monthly).
- Starts in July 2025.
- Specifically supports low-income Canadians with disabilities.
- Requires approval for the Disability Tax Credit to qualify.
This monthly benefit is designed to provide direct support, complementing the DTC’s tax relief.
How to Apply for the CRA Disability Tax Credit
- Complete Form T2201 – the Disability Tax Credit Certificate.
- Medical Certification – a doctor or other licensed specialist (e.g., optometrist, occupational therapist, psychologist, speech-language pathologist) must certify the impairment.
- Submit to CRA – either online through My Account or by mail.
- CRA Review – they will assess and notify approval or denial.
- Retroactive Claim – once approved, you may claim the DTC for up to 10 previous tax years, possibly resulting in a large refund.
Payment Dates and Frequency
While the DTC itself is claimed annually through your tax return, the Canada Disability Benefit (for eligible low-income households) has its own schedule:
- July 2025 – first payout of $200.
- Monthly thereafter – payments of $200 per month.
- The DTC amounts (up to $9,872 for adults / $15,630 for children) are applied when filing your 2025 tax return in spring 2026.
The CRA Disability Tax Credit 2025 remains one of the most effective ways to ease financial strain for disabled Canadians and their families.
With annual tax relief worth up to $15,630 and the new Canada Disability Benefit providing $200 monthly, this program ensures that households managing disabilities get the support they need.
Filing the proper paperwork, securing medical certification, and staying updated with CRA will maximize your benefits and ensure financial stability.
FAQs
How much can I claim under the CRA Disability Tax Credit in 2025?
Adults can claim $9,872, while children under 18 (with supplement) can claim $15,630.
What is the new Canada Disability Benefit starting in 2025?
It provides $200 per month ($2,400 annually) to low-income Canadians with disabilities, beginning in July 2025.
Do I need to reapply every year?
No. Once approved, the credit usually lasts up to 5 years before renewal, unless CRA requests an earlier reassessment.