What is the Disability Tax Credit and how do I apply in Ontario?

The Disability Tax Credit (DTC) is a non-refundable federal credit for people with severe and prolonged physical or mental impairments that markedly restrict their ability to perform basic daily activities. Ontario has a corresponding provincial disability amount, so approval for the DTC reduces both federal and Ontario provincial tax.

To claim the DTC, a qualified medical practitioner (physician, nurse practitioner, audiologist, optometrist, psychologist, or other regulated professional, depending on the nature of the impairment) must complete Form T2201 (Disability Tax Credit Certificate) confirming that the person meets the eligibility criteria. The CRA reviews the form and certifies eligibility, which may be for a specific period or indefinitely.

Once approved, the DTC can also be transferred to a supporting family member if the person with the disability does not have enough income to use the credit fully. Retroactive claims are allowed for up to 10 years if you were eligible in prior years but did not claim. The DTC also opens the door to other programs, including the Registered Disability Savings Plan (RDSP) and the Child Disability Benefit. If an application is denied, you can request a second review or appeal the decision. A tax professional can help structure the T2201 and any appeal.