4 in 10 Canadians Never Claim Tax Credits Owed to Them.
Canada has one of the most comprehensive government benefit systems in the world, but that doesn’t mean everyone who qualifies is receiving what they are owed. Every year, billions of dollars in federal and provincial benefits go unclaimed because people don’t know they exist.
One such benefit is the Disability Tax Credit (DTC), which is available to adults diagnosed with ADHD, parents of children managing Type 1 diabetes, and Canadians living with mental health conditions. Many individuals with these conditions do not claim this benefit because they wrongly assume that they are not “disabled” or do not realize that a disability is not solely defined by physical limitations, like needing a wheelchair or guide dog.
This assumption is incorrect.
The Canada Revenue Agency (CRA) does not approve the Disability Tax Credit based solely on a diagnosis; rather, it assesses how much a condition restricts everyday functioning. Conditions that can qualify include ADHD, Type 1 diabetes, depression, anxiety, and other mental health issues that may not be physically evident.
For 2025, the federal disability amount is $10,138, with an additional supplement of up to $5,914 for a dependent under 18. Once approved, this certification can also make you eligible for a newer, separate payment: the Canada Disability Benefit (CDB).
Who Qualifies?
CRA eligibility is based on one main question: Is the person significantly restricted in a basic activity of daily living nearly 90% of the time for at least 12 months? This assessment includes a category for mental functions, covering aspects such as memory, problem-solving, emotional regulation, judgment, and adaptive functioning. As a result, severe cases of ADHD, depression, anxiety, or autism may qualify when they significantly limit day-to-day life, even if the individual receives medication or therapy.
There is also a category for life-sustaining therapy. For instance, someone managing Type 1 diabetes with insulin may qualify if their therapy is medically required at specified frequencies and involves a set time commitment each week. In all cases, the CRA evaluates function, not labels. Two individuals with the same diagnosis can have very different outcomes based on how their conditions restrict their daily activities.
How Much is This Credit Worth and How Can It Be Claimed?
The current federal amount is $10,138. This is a non-refundable credit, meaning it reduces income tax payable; the benefit depends on the lowest federal tax rate for the year and the amount of tax owed. Provinces also add their own disability amount, which varies by location.
Bonus Feature: Qualifying for the DTC can unlock access to the Canada Disability Benefit (CDB).
Administered by Service Canada, the CDB pays up to $204.20 a month or $2,450.40 a year to eligible Canadians aged 18 to 64. It’s income-tested, so the amount you receive depends on family income, and applicants must first have an approved DTC.
How to Claim It
To start the process, use Form T2201, Disability Tax Credit Certificate. A doctor or nurse practitioner can certify any section, while a psychologist can specifically certify the mental functions section. Once the CRA approves the form, taxpayers can request adjustments for up to 10 previous tax years using the “Change my return” option in their CRA My Account, subject to normal reassessment limits. Canadians aged 18 to 64 who are approved for the DTC can then apply separately to Service Canada for the CDB.
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