Benefits of the Disability Tax Credit and related programs

Reducing income tax

One main benefit of the Disability Tax Credit is that it could reduce the amount of federal (Canada) and provincial/territorial income taxes someone owes.

The DTC can be applied to reduce the income tax of a person with a disability or of one or more family members who support someone with a disability.

The way that it works is that the DTC will be applied first to the person with disability. Unused credit amounts can then be transferred to the patients’ caregiver(s).

Unused amounts can also be split with the caregiver and another family member who financially supports the person who is applying.

How much is the DTC?

In 2024, the federal Disability Tax Credit is $9,872. You then multiply this amount by the lowest federal tax rate, which is 15%.

$9,872 x 15% = $1,480.80

So with the DTC, your federal taxes could be reduced by a maximum of $1,480.80.

But let’s say you only owe $1,000 in taxes. The DTC will reduce your taxes by that whole $1,000, but you don’t get a refund for the remaining amount. That’s why the DTC is called “non-refundable.”

However, that remaining amount could potentially be transferred to someone else, such as a family member who supports a person with a disability.

Additional child and provincial/territorial amounts

For children with disabilities, the 2024 federal DTC amount is an additional $5,758. You would again multiply this by 15% to get the maximum amount your taxes would be reduced by.

$5,758 x 15% = $863.70

Then there are additional provincial/territorial amounts depending on where you live. If you live in British Columbia, the 2024 provincial amount is $9,435, plus another $5,505 for children. You’d then multiply these amounts by your province/territory’s lowest tax rate. In BC, that’s 5.06%.

$9,435 x 5.06% = $477.41

Note that your exact amounts will vary. For more detailed info, see our Help Sheet (PDF).

Other benefits

The DTC is also a “gateway” to other benefits. The Canada Revenue Agency and provincial/territorial governments use the DTC as the way to see if you are eligible for other disability benefits. If you are approved for the DTC, you are approved for other programs. Some programs will require you to apply while others you receive automatically.

Other

There are other benefits, including the Home Buyer’s Amount, home expenses for renovations, medical expenses, reduced trust taxes, and easier application to Canada Caregiver Credit. For more information, try the Government of Canada’s Benefits Finder or Prosper Canada‘s Benefits Wayfinder.