How CRA Indexes the DTC Each Year
The Disability Tax Credit is not a fixed dollar amount, it's indexed to inflation using Canada's Consumer Price Index (CPI). Each fall, the federal government announces the next year's indexed amounts for non-refundable tax credits. This adjustment ensures that the real value of the credit doesn't erode as prices rise.
The indexing factor applies to:
- The base disability amount (line 31600)
- The child/dependant supplement
- The caregiver amount
- Most other federal personal tax credit amounts
Provincial amounts are indexed separately by each province, on their own schedules and using their own inflation measures. This is why provincial DTC credit values differ from province to province and change at different rates year to year.
2026 DTC Amounts vs. Prior Years
| Tax Year | Base Disability Amount | Federal Credit (15%) | Child Supplement Amount | Child Supplement Credit |
|---|---|---|---|---|
| 2026 | $9,872 | $1,481 | $5,758 | $864 |
| 2025 | $9,428 | $1,414 | $5,500 | $825 |
| 2024 | $9,125 | $1,369 | $5,320 | $798 |
| 2023 | $8,870 | $1,331 | $5,174 | $776 |
| 2022 | $8,662 | $1,299 | $5,053 | $758 |
| 2021 | $8,662 | $1,299 | $5,053 | $758 |
| 2020 | $8,576 | $1,286 | $5,003 | $750 |
| 2019 | $8,416 | $1,262 | $4,909 | $736 |
| 2018 | $8,235 | $1,235 | $4,804 | $721 |
| 2017 | $8,113 | $1,217 | $4,733 | $710 |
| 2016 | $8,001 | $1,200 | $4,667 | $700 |
Note: Prior year amounts are approximate estimates based on indexing patterns. Always confirm exact amounts on CRA's website for retroactive claims.
What the 2026 Increase Means in Practice
The year-over-year increase from 2025 to 2026 represents approximately $444 more in the base disability amount, translating to about $67 more in federal credit. While that may sound modest on an annual basis, consider:
- A new applicant claiming 10 years retroactively can expect slightly higher amounts for recent years and lower for earlier years, the overall retroactive pot grows with each passing year.
- Existing claimants automatically benefit from the higher 2026 amount on their current-year return, with no action required.
- The cumulative effect over 10 years of indexing is significant, the 2026 base disability amount ($9,872) is approximately 23% higher than the 2016 amount ($8,001).
2026 Combined Rates by Province
Here's how the 2026 federal credit combines with provincial credits across Canada:
| Province/Territory | Federal Credit | Provincial Credit | Total 2026 Credit |
|---|---|---|---|
| Alberta | $1,481 | $2,100 | $3,581 |
| Quebec | $1,481 | $2,260 | $3,741 |
| Manitoba | $1,481 | $1,704 | $3,185 |
| Saskatchewan | $1,481 | $1,664 | $3,145 |
| PEI | $1,481 | $1,158 | $2,639 |
| Nova Scotia | $1,481 | $1,009 | $2,490 |
| Yukon | $1,481 | $1,006 | $2,487 |
| New Brunswick | $1,481 | $986 | $2,467 |
| NWT | $1,481 | $979 | $2,460 |
| Newfoundland & Labrador | $1,481 | $941 | $2,422 |
| Nunavut | $1,481 | $717 | $2,198 |
| British Columbia | $1,481 | $606 | $2,087 |
| Ontario | $1,481 | $599 | $2,080 |
Are There Any Policy Changes for 2026?
Beyond the annual indexing, 2026 brings a few notable developments in the DTC landscape:
Continued Focus on Mental Health Eligibility
CRA has continued refining its guidance on mental functions eligibility, the category covering conditions like ADHD, depression, bipolar disorder, PTSD, and schizophrenia. While no formal rule changes took effect in 2026, there is growing consistency in how the "markedly restricts mental functions" standard is being applied, particularly around the 90% of the time test and the role of medication management.
Digital Submission Now Mainstream
CRA's investment in digital services means that digital T2201 submission through CRA My Account is now the norm rather than the exception. More practitioners are also familiar with the direct submission option through their CRA practitioner portal, reducing processing delays associated with paper mail.
RDSP Contribution Room Carryforward
The Registered Disability Savings Plan continues to gain awareness as a companion benefit to DTC approval. In 2026, unused RDSP grant and bond entitlements from prior years continue to carry forward (up to 10 years), meaning late applicants who get their DTC approved retroactively can still access significant matching grants retroactively through their RDSP.
Advice for New vs. Existing Applicants in 2026
If You're Applying for the First Time
Don't wait. Every year you delay is a year that falls off the 10-year retroactive window. If you apply in 2026 and qualify from 2014, you can only go back to 2016, 2014 and 2015 are gone. Apply now, even if you're unsure, the worst that happens is a denial that you can appeal.
If You're an Existing Claimant
The 2026 higher amounts apply automatically to your current-year return. Check your Notice of Determination to confirm your approval period hasn't lapsed. If CRA set a review date and it has passed, it's time to submit a new T2201 proactively.
If You Were Denied in Prior Years
Prior denials don't preclude future applications. Conditions change. Documentation improves. Medical understanding evolves. A condition that was denied in 2019 may be approvable in 2026 with better clinical documentation. Many successful applicants were denied once or twice before ultimately being approved.
Frequently Asked Questions
Yes. The DTC base disability amount increased from approximately $9,428 in 2025 to $9,872 in 2026, reflecting CRA's annual inflation indexing. The annual federal credit is now $1,481, up from approximately $1,414 in 2025.
Yes. The indexed amounts apply automatically each year to all approved DTC claimants. You don't need to reapply or submit anything new, the higher 2026 amounts will be reflected in your tax return automatically.
No. Retroactive claims use the DTC rates that were in effect in each prior year being claimed. A claim for 2020 uses the 2020 disability amount ($8,576), not the 2026 amount. CRA publishes historical disability amounts for reference.