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Disability Tax Credit (DTC)
Last verified: April 2026. Always confirm details on the official page.
Quick fit
- Not based on diagnosis — based on functional impairment
- Restriction must last 12 months or more
- Federal program, separate from OAP and SSAH
- Not income tested
- Retroactive up to 10 years
- Unlocks RDSP and Child Disability Benefit (CDB)
The DTC is a federal tax credit from the (Canada Revenue Agency). The credit itself may not save you much tax. The real reason to apply: it opens the (government matching up to $3,500/year) and the (Child Disability Benefit, approximately $3,400/year tax free). Those two benefits alone make the DTC worth doing for almost every family.
Apply now. Do not wait until tax season. Do not assume your income is too low. The RDSP bonds are specifically for lower income families.
How do I know if my child qualifies for the DTC
Approval is based on functional impairment, not diagnosis. Your child needs a severe and prolonged restriction in daily life, expected to last 12 months or more, certified by a medical practitioner on CRA Form T2201. Not income tested.
- Your child has a severe and prolonged impairment in physical or mental functions that causes a marked restriction in daily life
- The restriction must be expected to last 12 months or more
- A medical practitioner must certify this on CRA Form T2201
- Not income tested
- Federal. Completely separate from OAP and SSAH
Important
Approval is not automatic just because your child has an autism diagnosis. CRA looks at how the impairment affects daily functioning, not the diagnosis itself. The way your practitioner fills out Part B of the T2201 matters a lot.
How do I fill out the T2201 form for the DTC
- Fill out Part A. This is the family section. Basic information about your child.
- Give the form to your practitioner for Part B.This is the medical section. Your practitioner describes how your child's impairment affects daily functioning. They answer specific questions and check boxes about restrictions. This part determines the outcome more than anything else.
- Submit to CRA. You can upload it through CRA My Account online, or mail the paper form. Online is faster.
- Wait for CRA's determination. The official target is 8 weeks. In practice it has been taking up to 15 weeks. If CRA needs more information from your practitioner, it takes longer.
Part B is the control point
Part B asks about specific functional limitations. The practitioner needs to describe how the impairment affects your child, not just confirm the diagnosis. CRA does not approve based on diagnosis. They approve based on the description of daily functional impact. A weak Part B is the most common reason applications are denied.
What do I need to apply for the DTC
Documents and contacts
- CRA Form T2201 (Disability Tax Credit Certificate). Download it from CRA or ask your practitioner for a copy.
- A medical practitioner who knows your child well enough to describe how their impairment affects daily life. This can be a doctor, psychologist, nurse practitioner, occupational therapist, speech language pathologist, physiotherapist, audiologist, or optometrist.
- Your child's medical records in case CRA asks for supporting documentation. They do not always ask, but have them ready.
What does the Disability Tax Credit unlock
The DTC opens the RDSP (government matching up to $3,500/year) and the Child Disability Benefit (approximately $3,400/year tax free). These two benefits are the real reason to apply, regardless of your income or tax bill.
Child Disability Benefit (CDB)
Monthly tax free payments from the government. Approximately $3,400 per year at current rates. Check CRA for the latest amount. You get this automatically once DTC is approved and you file your taxes.
Registered Disability Savings Plan (RDSP)
A savings account for your child's future. The government contributes matching grants up to $3,500 per year and bonds up to $1,000 per year for lower income families. Lifetime government cap of $70,000. You need DTC approval before you can open an RDSP for your child.
Check CRA for current CDB and RDSP figures. Amounts change periodically.
What should I do after DTC approval
- Claim the DTC on your current tax return.
- Ask CRA to adjust your previous tax returns going back up to 10 years. This can result in a lump sum refund.
- Open an RDSP at your bank. Start as early as possible to maximize government matching.
- The Child Disability Benefit starts automatically once CRA processes your return. You do not need to apply separately.
What if my DTC application is denied
A denial is not the end. You have options:
- Submit additional medical information to support the application
- Call CRA at 1-800-959-8281 to discuss the determination
- File a formal objection within 90 days of the determination notice
Many families get approved on the second attempt with better Part B documentation.
What mistakes do families make with the DTC
Does the DTC affect my OAP or SSAH funding
No. The DTC is federal and completely separate from OAP and SSAH. You can hold all of them at the same time. See how all programs relate
Contact
Official source
This guide is based on publicly available government information. Always verify with the official page:
canada.ca — Disability Tax Credit (opens in new tab)Last verified against official source: April 2026
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What to do next
Open an RDSP at your bank
You need DTC approval before you can open one. The government contributes matching grants up to $3,500/year. Start early to maximize matching over your child's lifetime.
Read the Core Clinical guide for expense context →
Apply for SSAH
Separate provincial program for respite and daily supports. Not income tested. Does not reduce your OAP funding. Many families wait years without realizing it exists.
See how to apply for SSAH →
Register for OAP Core Clinical
The main therapy funding. Your place in line starts the day you register. The wait is years, so do this now.
See how to register →
Not sure what other programs may apply?
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