DTC (Disability Tax Credit)
A non-refundable tax credit for Canadians with a severe and prolonged impairment — and the eligibility requirement for opening an RDSP.
Last reviewed July 15, 2026
Reviewed for accuracy and clarity by Sandeep Singh before publication. Learn about our editorial process.
What it means
The Disability Tax Credit is a non-refundable federal tax credit that reduces the income tax owed by (or transferred from) a person with a severe and prolonged impairment in physical or mental functions. A medical practitioner certifies eligibility on Form T2201, which the CRA then reviews and approves.
Why it matters
Beyond the tax credit itself, DTC approval is the requirement that unlocks eligibility for an RDSP and its government grants and bonds — for many families, applying for the DTC is the first step toward RDSP savings, not the last.
Common misunderstandings
- It isn't only for permanent, visible disabilities — it covers a wide range of severe and prolonged physical and mental impairments, certified by a medical practitioner.
- Approval can often be applied retroactively for past tax years, not just going forward.
- Being denied once doesn't mean permanent ineligibility — applications can be reassessed or reapplied with more complete medical information.
Where you'll see it
On CRA's Form T2201, and as a prerequisite mentioned on every RDSP application.
Related terms
Not sure how this affects your specific tax situation?
Book a free check-up