Tax guide for Canadians with disabilities

Then comes tax season. There’s no shortage of programs available to Canadians with disabilities, including tax credits and savings programs—but navigating them can be expensive and time-consuming.

Yannick Lemay, a tax expert at H&R Block Canada, describes it as an “ocean” of information. “There are federal programs; there are provincial programs, provincial loans, depending on where you live. Sometimes even municipalities may have grants or other specific programs,” said Lemay, “So there’s a lot of information out there.”

So where do you start? Experts who spoke with MoneySense offer practical starting points—not only for people with disabilities, but also for caregivers, family members, and parents supporting a child with a disability.

Check your disability tax credit eligibility

Let’s start with the big one. Since its introduction in 1988, the Disability Tax Credit, or DTC, has represented one of the largest tax breaks for people with disabilities in Canada. For the 2025 tax year, it costs $10,138 for adults and $16,052 for children. Because the credit is nonrefundable, it won’t generate a refund on its own if you don’t owe taxes—but it can be passed on to a supporting family member, such as a spouse or parent, to reduce their taxes.

That transfer is often overlooked. Olivier Plourde, founder of T2 Tax Pro, says some people don’t apply because they think their income is too low for the debt to be worth it.

“They think they don’t deserve it, but they do,” he said. “If they have a low income and don’t pay a lot of tax, they might think it’s not a good idea to go through the DTC claim process, but in reality, they can transfer the credit to someone else.”

DTC eligibility requires an application and medical certificate. Although the criteria have expanded in recent years to better reflect mental health conditions and other disabilities, the standard still says that your disability must have a “marked limitation” in daily life. In practical terms, that usually means that the impairment has lasted (or is expected to last) at least 12 months, is present at least 90% of the time, and makes basic activities like walking, dressing, or using the bathroom take a very long time. You can combine multiple handicaps to meet that limit.

If you’re worried that you’ve missed your window, there is some flexibility. Once approved, the DTC can be used continuously for up to 10 years of tax refunds. There is also an option on the form to ask the CRA to review previous returns. Processing times can take up to several weeks, so it’s better to apply sooner rather than later. It is also worth checking the provincial credits related to support.

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Even if you’re not sure about the fit, Plourde says it’s worth checking out. “Book an appointment with your healthcare professional and ask if they can fill out the T2201 form,” he said. “See if you can get a tax credit.”

Check the eligibility of medical expenses

For many Canadians with disabilities, the biggest item on their budget is medical expenses—sometimes more than housing costs. This is often motivated by the fact that many also live below the poverty line.

The tax system offers some help, but it can be difficult to determine which expenses are eligible. The federal government maintains a searchable list of eligible medical expenses, including those that are fully eligible, those that are conditionally eligible, and those that require Disability Tax Credit (DTC) approval, which often serves as a gateway to other government support.

Some things are straightforward: expenses such as catheters or insulin are clearly justified. Others depend on circumstances. Certain procedures, such as reconstructive surgery or nursing home caregiver care, may be eligible, and some claims require a prescription or DTC eligibility. Of course, there are also expenses that aren’t worth it at all, like gym memberships.

The result is a program that it does it offers support, but requires careful navigation to fully access it.

Find out the cost of home repairs

Remodeling is another area where disability-related expenses may qualify for Home Accessibility Tax Credit (HATC) relief. In plain terms, it’s a non-refundable loan that helps pay for the cost of making a home safer or more affordable.

So, what is important? In general, reasonable adjustments are permanent changes that make your home more accessible or habitable for a person with a disability. Usually structural changes—not things you can take with you. Appropriate accommodation is where the disabled person lives and can include what is known as a qualified person, such as a spouse or parent applying alongside you. You are eligible if you have received Disability Tax Credit or if you are over 65.

In 2025, you can claim up to $20,000 in eligible expenses. Like other refundable credits (such as DTC), the benefit does not give you a refund; reduces the amount of tax you owe. Eligible expenses include materials, professional labor, some work done by family members (if they are registered for GST/HST), and related costs such as permits or equipment hire if you do the work yourself. If the expense qualifies as medical expenses and part of the HATC, you can claim it twice.