CRA Confirms Up to $8986 Disability Tax Credit, Check Full Eligibility and Payment Dates

The Disability Tax Credit (DTC) has become even more valuable. The Canada Revenue Agency (CRA) has confirmed that eligible Canadians with disabilities—or their supporting family members—can now receive up to \$8,986 in tax refunds.

With rising healthcare and everyday costs, this enhanced non-refundable credit is more than a simple tax deduction. It provides much-needed relief and long-term financial security for Canadians living with disabilities. Here’s a complete guide to who qualifies, how much you can receive, and the steps to apply.

Eligibility: Who Can Apply for the DTC in 2025

The DTC is not available to everyone—it’s specifically designed for individuals with severe, long-term disabilities that significantly impact daily life. To qualify in 2025, applicants must meet these requirements:

• Medical Certification – A licensed doctor or specialist must certify your disability using Form T2201.
• Duration – The disability must have lasted, or be expected to last, at least 12 months.
• Daily Function – The condition must seriously restrict essential daily activities such as walking, dressing, feeding, or speaking.
• CRA Approval – The CRA must approve your Disability Tax Credit Certificate (Form T2201) before you can claim the benefit.

Importantly, even if the person with the disability has little or no taxable income, a supporting family member—such as a parent or spouse—can claim the credit on their behalf and receive the refund.

Refunds: How Much Can You Receive in 2025?

The exact refund depends on income levels, provincial programs, and the amount of tax owed. However, the CRA has confirmed these 2025 amounts:

Component	Federal Amount	Provincial Average	Total Potential Refund
Base Disability Tax Credit	\$9,428	\$5,135	\$14,563
Refundable Amount	N/A	N/A	Up to \$8,986

Some provinces also provide additional disability credits, which can further increase refunds. The combination of federal and provincial benefits means eligible families may receive thousands of dollars in tax relief each year.

Application: How to Apply for the DTC

The CRA has outlined a clear process for applying for the Disability Tax Credit:

1. Download Form T2201 from the CRA website.
2. Have it certified by a qualified medical practitioner, such as a doctor, psychologist, or other licensed specialist.
3. Submit the form through your CRA MyAccount online portal, or mail it directly to the CRA.
4. Wait for approval – You’ll receive a formal Notice of Determination from the CRA once your application has been processed.

Once approved, the DTC applies not only to the current tax year but can also be claimed retroactively for up to 10 years. This retroactive option could mean thousands in additional refunds for families who previously qualified but had not applied.

Benefits Beyond Tax Refunds

The Disability Tax Credit does more than reduce annual income tax—it also opens the door to several other key financial supports, including:

• Registered Disability Savings Plan (RDSP), which allows tax-deferred savings for future needs.
• Canada Workers Benefit – Disability Supplement, providing additional income support.
• Provincial disability programs, including housing assistance and supplemental healthcare support.
• Medical cost support, such as help with travel, specialized equipment, or personal care services.

For many families, this credit means being able to afford essential care, make home modifications, or hire additional support without going into debt.

Importance: Why the 2025 DTC Update Matters

With the continued rise in inflation and healthcare costs, financial relief for vulnerable households is more important than ever. The updated DTC provides:

• Tax relief for individuals with disabilities and their caregivers.
• Access to savings and supplemental programs that strengthen long-term financial security.
• Support for caregivers, reducing financial strain on families providing at-home care.
• Greater independence for people with disabilities through enhanced financial flexibility.

The CRA’s update highlights the government’s recognition of the challenges faced by Canadians living with disabilities. Whether you are directly affected or supporting a loved one, applying for the DTC could have a major financial impact.

FAQs

Q1: How much is the Disability Tax Credit worth in 2025?
A: Eligible individuals can receive up to \$8,986 in refundable credits, with a total tax reduction of more than \$14,500 when combined with provincial amounts.

Q2: Can family members claim the DTC on someone else’s behalf?
A: Yes. If the individual with the disability has little or no taxable income, a supporting parent, spouse, or caregiver can claim the credit and receive the refund.

Q3: How far back can I claim the DTC?
A: Once approved, you can apply the DTC retroactively for up to 10 years, potentially unlocking thousands of dollars in past refunds.

Q4: What medical conditions qualify for the DTC?
A: Any severe, long-term impairment that significantly restricts daily activities may qualify. Common examples include mobility issues, neurological disorders, and severe mental health conditions—but each case requires medical certification.

Q5: How long does CRA approval take?
A: Approval timelines vary but typically take a few weeks to several months. You’ll receive a Notice of Determination once the CRA has reviewed your application.