The Disability Tax Credit is a non-refundable tax credit provided by the Canada Revenue Agency. It reduces the amount of income tax a person with a severe and prolonged impairment may owe. If approved, you may also qualify for retroactive refunds and other federal programs.
You may qualify for the Disability Tax Credit if you have a severe and prolonged physical or mental impairment that significantly limits basic daily activities such as walking, dressing, speaking, hearing, feeding, mental functions, or elimination. A medical practitioner must certify your condition.
The Disability Tax Credit can be worth thousands of dollars per year in reduced taxes. If approved retroactively, some applicants may receive refunds going back up to 10 years, depending on eligibility and tax history.
If you qualify, the CRA may reassess prior tax years, potentially up to 10 years. This can result in substantial retroactive refunds if you were eligible during those years.
Processing times vary. Once the completed application is submitted to the CRA, review can take several weeks to a few months depending on case complexity and volume.
Approval depends on how clearly your condition meets CRA criteria. The key factor is how the impairment affects daily functioning, not just the diagnosis itself. Proper documentation and accurate completion of the application significantly improve approval chances.
Mental health conditions such as ADHD, anxiety, or depression may qualify for the Disability Tax Credit if they markedly restrict mental functions necessary for everyday life. Eligibility is based on severity and duration, not simply the diagnosis.
No. The Disability Tax Credit is not a loan and does not need to be repaid. It reduces taxes owed and may generate refunds if you were eligible in previous years.