🇨🇦 Canada

Disability Tax Credit Calculator Canada 2025

Estimate your DTC tax savings, retroactive lump sum, Child DTC benefits, and the new Canada Disability Benefit (CDB) — up to $200/month starting June 2025.

The Disability Tax Credit (DTC) provides significant tax savings and unlocks access to RDSP, CDB, and additional CCB benefits. The new Canada Disability Benefit (CDB) launched June 2025 adds up to $200/month in direct payments.
Provincial DTC amounts vary significantly
Child DTC includes an additional supplement
CRA allows claims up to 10 years back

Estimates based on 2025 federal and provincial rates. Individual circumstances vary. Not financial or medical advice.

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How to Use This Calculator

Tab "DTC Estimate"

Select your province or territory, whether you are an adult or child applicant, and how many retroactive years you want to claim (up to 10). The calculator shows your federal and provincial DTC credit, annual savings, and potential retroactive lump sum. It also lists what DTC approval unlocks — RDSP, CDB, and additional CCB amounts.

Tab "Child DTC"

Enter the number of children approved for the DTC, your province, and whether you receive the Canada Child Benefit. The calculator shows the DTC credit per child (including the child supplement), the Child Disability Benefit paid through CCB, and total family benefits.

Tab "Canada Disability Benefit"

Enter your age, DTC approval status, annual income, and marital status. The CDB is a new cash payment (launched June 2025) of up to $200/month for working-age adults with an approved DTC. The calculator estimates your monthly and annual CDB amount based on the income test, and shows the combined value with the DTC.

The Formulas

Federal DTC credit:
Credit = Base disability amount x 15%
2025: $10,138 x 15% = $1,521

Child supplement:
Additional credit = $5,914 x 15% = $887
Total child DTC = $1,521 + $887 = $2,408 (federal)

Provincial DTC credit:
Varies by province — ON: $522, BC: $430, AB: $1,088, SK: $630, MB: $430, QC: separate system

Retroactive lump sum:
Lump sum = Annual DTC value x (retroactive years + current year)

Canada Disability Benefit (CDB) income test:
Maximum CDB = $200/month ($2,400/year)
Single threshold: ~$23,000 | Couple threshold: ~$32,500
Reduction: ~$0.20 per $1 of income above threshold

Child Disability Benefit via CCB:
Up to $3,475/year per eligible child (income-tested through CCB)

The DTC is non-refundable — it reduces tax to $0 but cannot generate a refund on its own. Unused portions can be transferred to a supporting family member. The CDB, by contrast, is a direct cash payment.

Example

James — Adult in Ontario, DTC approved, 5 years retroactive

James was approved for the DTC in 2025 and wants to claim retroactively for 5 years (2020-2024) plus the current year (2025).

Federal DTC credit$1,521/year
Provincial credit (Ontario)$522/year
Annual DTC total$2,043/year
Retroactive lump sum (6 years)$12,258
CDB (income $18,000, single)$200/month ($2,400/year)
Combined annual value (DTC + CDB)$4,443/year

James receives a retroactive lump sum of $12,258 and ongoing annual benefits of $4,443 between the DTC and CDB. He can also open an RDSP with government matching grants of up to $3,500/year.

Frequently Asked Questions

Form T2201 is the Disability Tax Credit Certificate. Part A is completed by you (or a legal representative). Part B must be completed and signed by a qualified medical practitioner — a medical doctor, nurse practitioner, optometrist, audiologist, occupational therapist, physiotherapist, psychologist, or speech-language pathologist, depending on the type of impairment. The CRA reviews the form and notifies you of the decision, typically within 8-12 weeks.
The CDB launched in June 2025 and provides up to $200/month ($2,400/year) to Canadian residents aged 18-64 with an approved DTC. It is income-tested: the full amount goes to those earning below ~$23,000 (single) or ~$32,500 (couple), and reduces by about 20 cents for each dollar above the threshold. Unlike the DTC, the CDB is a direct cash payment deposited into your bank account. CDB payments are considered taxable income.
The Registered Disability Savings Plan (RDSP) is a long-term savings plan for individuals with an approved DTC. It allows up to $200,000 in lifetime contributions. The federal government provides matching Canada Disability Savings Grants (up to $3,500/year) and Canada Disability Savings Bonds (up to $1,000/year for low-income individuals). RDSP withdrawals are taxable but the grants and bonds are essentially free money. You must have DTC approval to open or maintain an RDSP.
Yes. Once the CRA approves your DTC, you can request adjustments (T1-ADJ or via My Account) for up to 10 previous tax years. The CRA will reassess each year and issue refunds for any tax that was paid but would have been reduced by the DTC. Retroactive claims can result in lump sums of $15,000-$25,000 or more. You only need to file T2201 once — the approval typically covers multiple years both forward and backward.
Yes. Since the DTC is non-refundable, if the person with the disability does not have enough tax owing to use the full credit, the unused portion can be transferred to a supporting spouse, common-law partner, parent, grandparent, child, grandchild, sibling, aunt, uncle, niece, or nephew. The supporting person must have provided regular and ongoing support. This transfer is claimed on Schedule 2 of the tax return.

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