The ‘Disability Tax Credit’ (DTC) administered by the Canada Revenue Agency (CRA), is a non-refundable tax credit amount which is intended to assist Canadians with severe and protracted disabilities. On a calendar basis, the Federal amount is benched at $9,872.00 with an additional ‘Child Disability Tax Credit’ (CDTC) of $5,758.00 for those under aged 18. The combined tax credit for a qualified child can be paid up to $15,630.00. The tax credit described helps reduce the any person level of income tax, payable by a disabled person or any family member sponsoring him/her.
Who is Eligible for the Disability Tax Credit?
The eligibility for the DTC is dependent on the gravity and duration of an impairment, and the extent to which it impacts the individual’s ability to undertake activities of daily living. The individual, as a resident must be certified by a qualified medical practitioner to have a proverbial ‘marked’ restriction, at least 1 area as of walking, speaking, vestibular function (hearing), l’ and, to some extent, apraxia (dressing), an defeating, visual function. To that and, the individual must be a resident of Canada; the restriction is a minimum of 12 calendar months. Recent sifts in the method have extended eligibility under the mental illness and life sustaining therapy, of which, type 1 diabetes is an inclusion.
DTC Summary Table
| Aspect | Detail |
|---|---|
| Disability Amount | $9,872 for adults (2025 tax year) |
| Child Disability Supplement | $5,758 for children under 18 |
| Eligibility | Medical certification of severe, prolonged impairment affecting daily activities |
| Benefit Payment Dates | Monthly from July 2025 (e.g., July 17, August 21) |
| Credit Use | Tax reduction or transferable to family member |
Credit Amounts and Application of the Credit
The Disability Tax Credit is not a payment but a reduction in tax owed. For the tax year 2025, the amount for adults aged 18 and above is $9,872. Children under 18 receive a supplementary amount of $5,758. The credits can be applied to tax returns which can significantly reduce the amount of tax owed. Unused portions of the credit can be reclaimed to a family member, for example, a spouse or a parent.
2025 Key Payment Dates
The DTC is a credit that is applied to the taxes owed annually, but the associated benefits, such as the Canada Disability Benefit which provides direct monthly financial assistance, started paying benefits in July 2025. The benefit payment dates for July 17, August 21, September 18, and October 16 for 2025. Once application and eligibility is determined for these benefits, payment is made automatically.
FAQS
1. Is the Disability Tax Credit a direct payment?
No, although it is a tax credit that lowers taxes due, some associated benefits provide direct monthly payments.
2. Can the credit be claimed by family members?
Yes, supporting close relatives like a spouse or parent can receive the transferred, unused credits.
