A tax guide for Canadians with disabilities

Then comes tax season. There’s no shortage of programs available to Canadians who are disabled, including tax credits and savings plans—but navigating them can be both overwhelming and time consuming. 

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

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

Check your disability tax credit eligibility

Let’s start with the big one. Since it was introduced in 1988, the Disability Tax Credit, or DTC, represents one of the largest tax breaks for disabled people in Canada. For the 2025 tax year, it’s worth $10,138 for adults and $16,052 for children. Because it’s a non-refundable credit, it won’t generate a refund on its own if you don’t owe tax—but it can be transferred to a supporting family member, such as a spouse or parent, to reduce their tax bill.

That transferability is often overlooked. Olivier Plourde, founder of T2 Tax Pro, says some people don’t apply because they assume their income is too low for the credit to matter.

“They think they don’t qualify, but they are eligible,” he says. “If they have low income and aren’t paying much tax, they might think it’s not a good idea to go through the process to claim the DTC, but in fact, they could transfer the credit to someone else.”

Qualifying for the DTC requires an application and medical certification. While the criteria have broadened in recent years to better reflect mental health conditions and other disabilities, the standard remains that your disability must have a “marked restriction” in daily life. In practical terms, that generally means 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 such as walking, dressing, or using the bathroom take significantly longer. You can combine multiple disabilities to meet that threshold.

If you’re worried you’ve missed your window, there’s some flexibility. Once approved, the DTC can be applied retroactively for up to 10 years of tax returns. There’s also an option on the form to ask the CRA to reassess prior returns. Processing times can stretch to several weeks, so it’s best to apply sooner rather than later. It’s also worth checking for related provincial credits and support.

Even if you’re unsure about eligibility, Plourde says it’s worth exploring. “Book an appointment with your health professional and ask if they can complete the form, the T2201,” he says. “See if you could be eligible for the tax credit.”

Check medical expense eligibility

For many disabled Canadians the biggest line item in their budget is medical expenses—sometimes even exceeding housing costs. This is often compounded by the fact that many are also living below the poverty line. 

The tax system offers some relief, but it can be tricky to figure out which expenses qualify. 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 approval for the Disability Tax Credit (DTC), which often acts as a gateway to other government support.

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

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

Claim home renovation costs

Renovations are another area where disability-related costs may qualify for relief through the Home Accessibility Tax Credit (HATC). In plain terms, it’s a non-refundable credit that helps offset the cost of making a home safer or more accessible.

So, what counts? Generally speaking, eligible renovations are permanent changes that make your home more accessible or liveable for the person with a disability. They are typically structural changes—not items you can take with you when you move. An eligible dwelling is where the disabled person lives and can include what is known as an eligible individual, such as a spouse or parent who is applying alongside you. You qualify if you have received the Disability Tax Credit or if you are over 65.

For 2025, you can claim up to $20,000 in eligible expenses. As with other non-refundable credits (like the DTC), the benefit doesn’t give you a cash refund; it reduces the amount of tax you owe. Eligible costs include building materials, professional labour, certain work performed by family members (if they’re registered for GST/HST), and related expenses like permits or equipment rentals if you’re doing the work yourself. If an expense is eligible as both a medical expense and part of HATC, you can claim it twice.