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 (2026 rate) | Child Supplement Amount | Child Supplement Credit |
|---|---|---|---|---|
| 2026 | $10,341 | $1,448 | $6,032 | $845 |
| 2025 | $10,138 | $1,470 | $5,914 | $858 |
| 2024 | $9,872 | $1,481 | $5,758 | $864 |
| 2023 | $9,428 | $1,414 | $5,500 | $825 |
| 2022 | $8,870 | $1,331 | $5,174 | $776 |
| 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 included for planning and should be checked against the official tax package before any retroactive adjustment.
What the 2026 Increase Means in Practice
The 2026 amount matters because it changes the current-year planning estimate, but it should not be read as a guaranteed refund. The DTC is non-refundable, the credit rate changed for 2026, and the actual value depends on whether the approved person or an eligible supporter has tax payable. In practice:
- Current-year claimants should use the 2026 federal amount and their province or territory's 2026 disability amount when estimating the year.
- Retroactive claims must use the DTC amount and credit rate for each specific tax year being adjusted, not the 2026 figure for every year.
- Existing claimants should confirm their approval period has not expired before assuming the credit can be claimed on the current-year return.
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 | $1,448 | $2,100 | $3,548 |
| Québec | $1,448 | $2,260 | $3,708 |
| Manitoba | $1,448 | $1,704 | $3,152 |
| Saskatchewan | $1,448 | $1,664 | $3,112 |
| PEI | $1,448 | $1,158 | $2,606 |
| Nova Scotia | $1,448 | $1,009 | $2,457 |
| Yukon | $1,448 | $1,006 | $2,454 |
| New Brunswick | $1,448 | $986 | $2,434 |
| NWT | $1,448 | $979 | $2,427 |
| Newfoundland & Labrador | $1,448 | $941 | $2,389 |
| Nunavut | $1,448 | $717 | $2,165 |
| British Columbia | $1,448 | $606 | $2,054 |
| Ontario | $1,448 | $599 | $2,047 |
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 common. More practitioners are also familiar with the direct submission option, which can reduce paper-mail friction when the applicant and practitioner are both comfortable using the digital process.
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
Do not rely only on the dollar table. Start with eligibility, then documentation. The 10-year adjustment window can matter for older impairments, but CRA still decides the approved years from the medical information on Form T2201. If you are unsure, review the eligibility guide and speak with a qualified Canadian tax professional before filing.
If You're an Existing Claimant
The 2026 amount is used for the 2026 tax year when the claimant has a valid DTC approval period and the credit is claimed correctly. Check your Notice of Determination to confirm the approval period has not lapsed. If CRA set a review date and it has passed, you may need to submit a new T2201.
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. For 2026, Finance Canada identifies a DTC amount of $10,341 and a federal tax reduction of up to $1,448. The amount a taxpayer can actually use still depends on tax payable, approved years, transfer rules, and provincial credits.
The current-year DTC amount is applied when an approved claimant files for that tax year, but the person still needs a valid approval period and enough tax payable, or an eligible supporting person, to use the credit. If the approval period expired, a new T2201 may be required.
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.