CRA Disability Tax Credit 2025: Updated Amounts, Eligibility Rules & Payment Schedule

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The Disability Tax Credit (DTC) is a non-refundable tax credit offered by the Canada Revenue Agency (CRA) to assist individuals with disabilities or their supporting family members in reducing the amount of income tax they may have to pay. For the 2025 tax year, there are updates to the DTC amounts, eligibility criteria, and payment schedules that individuals should be aware of.

What is the Disability Tax Credit?

The DTC is designed to provide financial relief to individuals with severe and prolonged impairments by reducing their taxable income. This credit can be claimed by the individual with the disability or by a supporting family member, such as a parent or spouse, who provides financial support.

Updated DTC Amounts for 2025

For the 2025 tax year, eligible individuals can claim the following amounts:

Base Disability Amount: $9,872
Supplement for Children Under 18: $5,758

These amounts are non-refundable, meaning they can reduce the amount of tax owed but cannot result in a refund. The base amount applies to individuals aged 18 and older, while the supplement is available for those under 18.

Eligibility Criteria for the DTC

To qualify for the DTC in 2025, individuals must meet the following criteria:

Severe and Prolonged Impairment: The individual must have a physical or mental impairment that is severe and prolonged, lasting, or expected to last, for a continuous period of at least 12 months.
Medical Certification: A qualified medical practitioner must certify the impairment by completing and signing the T2201 form, “Disability Tax Credit Certificate.”
Canadian Residency: The individual must be a Canadian resident for income tax purposes.
Tax Filing Requirement: The individual or their supporting family member must have filed a 2024 federal income tax return.

How to Apply for the DTC

To apply for the DTC, follow these steps:

Obtain Form T2201: Download the T2201 form from the CRA website or request a copy by calling the CRA.
Complete the Form: Fill out the personal information section and have a qualified medical practitioner complete the medical certification section.
Submit the Form: Mail the completed form to the address provided on the form or submit it online through the CRA’s My Account portal.
Wait for Approval: The CRA will review the application and notify you of their decision. If approved, the DTC will be applied to your tax return.

Claiming the DTC on Your Tax Return

Once approved for the DTC, you can claim the credit on your income tax return:

Individuals Aged 18 and Older: Claim the base disability amount of $9,872.
Individuals Under 18: Claim the base disability amount plus the supplement for children under 18, totaling $15,630.

These amounts will reduce your taxable income, potentially lowering the amount of tax owed.

Payment Schedule for the DTC

As a non-refundable tax credit, the DTC does not result in direct payments. Instead, it reduces the amount of income tax you owe. However, if you are eligible for other benefits, such as the Canada Disability Benefit (CDB), you may receive direct payments.

For the 2025 tax year, the CDB provides monthly payments to eligible individuals. The payment schedule is as follows:

First Payment: July 17, 2025
Subsequent Payments: On the third Thursday of each month

If your total yearly payment for the period from July 1, 2025, to June 30, 2026, is $240 or less, you will receive a lump sum payment instead of monthly payments.

Conclusion

The Disability Tax Credit for 2025 offers significant financial relief to individuals with disabilities and their supporting family members. By understanding the updated amounts, eligibility criteria, and application process, you can ensure that you receive the benefits to which you are entitled. Remember to file your 2024 tax return and apply for the DTC promptly to take advantage of these benefits.