Wealth Strategies: Disability Tax Credits
Milestone Wealth Management Ltd. - Dec 17, 2025
DISABILITY TAX CREDIT – WHAT TO KNOW
Many Canadians at some point in time may experience a temporary or prolonged disability, which can bring many challenges for both the individual and their loved ones. There may be some reprieve, however, from a financial perspective. Despite not being widely advertised, the Canadian Disability Tax Credit (DTC) can certain be worth pursuing for those who qualify.
To be eligible for the DTC, a medical practitioner must certify that you have:
- A severe and prolonged (marked) impairment in one of the following categories,
- Significant limitations in two or more categories
- A need for therapy to support a vital function
Categories:
- Walking
- Mental functions
- Dressing
- Feeding
- Eliminating (bowel or bladder functions)
- Hearing
- Speaking
- Vision
- Life-sustaining therapy
A marked restriction means:
- You are unable to do the activity, or it takes 3 times longer than someone of similar age without the impairment, even with the use of appropriate therapy, medication, and devices
- This restriction is present all or almost all of the time (generally at least 90%)
- The restriction has lasted or is expected to last for a continuous period of at least 12 months
The cumulative effect of significant limitations combines the effects of limitations in two or more categories if combined, their effect may be as severe as having a marked restriction in one category. For example, the individual takes a prolonged period of time to dress and feed themselves, and the additional time it takes for these is equivalent to being unable (or taking three times longer) to do only one of them, they may be eligible. This often applies to individuals with both mental or physical limitations who do not meet the eligibility criteria for a marked restriction.
Applying for the DTC requires both the involvement of the individual who has the impairment and a medical practitioner to certify the impairment. Eligible practitioners may include medical doctors, nurse practitioners, optometrists, physiotherapists, psychologists, occupational therapists, audiologists, and speech-language pathologists.
You can apply for the DTC at any time during the year. However, if you submit your application upon also filing your tax return, there may be a delay in your tax assessment because the CRA will review your DTC application before your tax return is assessed. It’s therefore recommended to submit your DTC application before you file your tax return. The credit can be split or transferred to a supporting family member. Additionally, if you were eligible for the DTC in prior years but did not claim it, you may apply retroactively.
For more details, visit the Canada Revenue Agency’s Disability Tax Credit page:
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