Disability Tax Credit Glossary, Canada 2026

Eligibility Concepts

Basic Activities of Daily Living (BADL)

The eight activities CRA assesses when reviewing a Disability Tax Credit application: walking, speaking, hearing, vision, eliminating (bowel or bladder), feeding, dressing, and mental functions necessary for everyday life. A restriction in any one of these can support a claim. See our cumulative effects rule guide for how restrictions across multiple BADL combine.

Marked Restriction

A single restriction in a basic activity of daily living that, even with therapy and assistive devices, takes three times longer than someone without the impairment, or cannot be done at all. The restriction must be present at least 90 percent of the time and last, or be expected to last, at least 12 continuous months. A marked restriction in any one BADL qualifies on its own.

Cumulative Effect Rule

The rule that lets two or more partial restrictions, taken together, qualify for the DTC when no single restriction reaches the marked threshold. The combined effect must take at least 14 hours per week of extra support and time, all or substantially all of the time. This is one of the most common eligibility paths for moderate-but-multiple conditions. See our full guide to the cumulative effects rule.

Prolonged Impairment

The CRA term for an impairment that has lasted, or is expected to last, at least 12 continuous months. Sporadic or temporary conditions do not qualify regardless of severity. The 12-month duration anchor is a hard threshold under the Income Tax Act.

Life-Sustaining Therapy

A separate DTC eligibility route for impairments that require at least 14 hours per week of therapy essential to sustain a vital function. Classic examples include insulin therapy for Type 1 diabetes, dialysis for kidney failure, and chest physiotherapy for cystic fibrosis. Time spent administering, monitoring, and travelling for the therapy can count toward the 14 hours.

Federal Disability Amount

The non-refundable federal tax credit amount used to calculate the Disability Tax Credit. For 2026 the federal basic disability amount is approximately $9,872, indexed annually. The credit equals the disability amount multiplied by the lowest federal marginal tax rate (15%), producing about $1,481 in federal credit per year for an approved person.

Forms and Processes

Form T2201

The Disability Tax Credit Certificate, the only form CRA uses to determine DTC eligibility. The form has two parts: Part A is completed by the applicant or supporting person, and Part B is completed by a qualified medical practitioner. The current version is available at canada.ca. See our T2201 application guide for a walkthrough.

Part A and Part B (T2201)

Part A is the applicant section of form T2201, which captures identifying information and confirms which tax years the credit is being claimed for. Part B is the medical section, certified by a doctor, nurse practitioner, psychologist, optometrist, audiologist, physiotherapist, occupational therapist, or speech-language pathologist depending on the impairment category. Part B is where eligibility is established.

Form T1-ADJ (T1 Adjustment Request)

The CRA form used to request adjustments to previously filed personal income tax returns. After a DTC approval is granted retroactively, T1-ADJ is the form used to claim the credit for prior tax years and unlock a refund of overpaid tax. Retroactive claims can go back up to 10 years.

Schedule 6 and Provincial Form 428

Schedule 6 is the part of the federal tax return where the DTC is claimed. Each province and territory has its own Form 428 (ON428 for Ontario, BC428 for British Columbia, and so on), where the provincial portion of the DTC is calculated. In every province except Quebec, CRA applies the provincial portion automatically once Schedule 6 is completed.

Form TP-752.0.14 (Quebec)

The Quebec provincial form used to claim the Tax Credit for a Severe and Prolonged Impairment with Revenu Quebec. Quebec is the only province where residents must file a separate provincial form for the disability credit. The medical criteria are similar to the federal CRA criteria but determined independently.

Notice of Determination

The official letter CRA issues after reviewing a T2201 application, stating whether the Disability Tax Credit is approved, the tax years for which it is approved, and any expiry date. The 90-day window to file a Notice of Objection begins on the date shown on the Notice of Determination.

Notice of Objection

The formal letter a taxpayer files under section 165 of the Income Tax Act to dispute a Notice of Determination. The letter is sent to the Chief of Appeals at the Sudbury Tax Centre and must be filed within 90 days of the Notice of Determination date. See our DTC denied appeal guide for the full process and a template letter.

Linked Federal Benefits

Canada Disability Benefit

A federal income-support program launched in July 2025 that pays up to about $200 per month to working-age adults aged 18 to 64 with an approved Disability Tax Credit. The benefit is income-tested. See our Canada Disability Benefit guide for eligibility details and how to apply.

Child Disability Benefit

A monthly federal payment of up to $3,411 per year (2026, indexed annually) for a child under 18 with an approved T2201. The benefit is added automatically to the Canada Child Benefit once the DTC is approved. It is income-tested and paid to the primary caregiver. See our Child Disability Benefit guide for details.

Registered Disability Savings Plan (RDSP)

A federal long-term savings vehicle for Canadians with an approved Disability Tax Credit. The RDSP allows up to $200,000 in lifetime contributions and is the gateway to up to $90,000 in federal grants and bonds. See our RDSP guide for contribution rules, withdrawal mechanics, and estate planning considerations.

Canada Disability Savings Grant (CDSG)

The federal matching grant paid into an RDSP based on personal contributions. For low-income families, the grant matches the first $500 contributed at 300 percent and the next $1,000 at 200 percent, for a maximum of $3,500 per year. Higher-income families receive a 100 percent match on the first $1,000 contributed.

Canada Disability Savings Bond (CDSB)

The federal bond paid into an RDSP for low-income beneficiaries, with no personal contribution required. Up to $1,000 per year is deposited automatically for families with net income under the program threshold, up to a lifetime maximum of $20,000. The CDSB is one of the most overlooked DTC-linked benefits.

Home Accessibility Tax Credit (HATC)

A federal non-refundable credit of 15 percent on up to $20,000 of eligible renovations to make a principal residence safer or more accessible. The maximum annual federal refund is $3,000. The credit is available to DTC-approved individuals and qualifying supporting relatives. Claimed on line 31285 of the federal tax return.

Provincial Disability-Income Programs

AISH (Assured Income for the Severely Handicapped, Alberta)

Alberta's income-support program for adults with severe and permanent disabilities. AISH has its own medical and financial eligibility tests separate from the DTC. Approval for one does not guarantee approval for the other, but DTC documentation is widely accepted as supporting evidence in an AISH application. See Alberta DTC guide.

ODSP (Ontario Disability Support Program)

Ontario's primary income-support program for adults with disabilities. ODSP and the federal DTC are independent programs with separate eligibility tests. The DTC does not reduce ODSP benefits, and an ODSP recipient can also claim the DTC if they meet the federal criteria. See Ontario DTC guide.

PWD (Persons With Disabilities, British Columbia)

British Columbia's income-support designation for adults whose disability significantly restricts daily activities. PWD is administered by BC Employment and Assistance and has its own medical assessment process. DTC approval can support a PWD application but is not a substitute. See British Columbia DTC guide.

SAID (Saskatchewan Assured Income for Disability)

Saskatchewan's income-support program for adults with significant and enduring disabilities. SAID has its own medical eligibility process and is administered by the Ministry of Social Services. DTC documentation is accepted as part of the medical record. See Saskatchewan DTC guide.

Statutory and Administrative References

Income Tax Act (Sections 118.3 and 165)

The federal statute that creates and governs the Disability Tax Credit. Section 118.3 defines DTC eligibility, including the marked restriction, cumulative effect, and life-sustaining therapy tests. Section 165 governs the Notice of Objection process for disputing a CRA determination. The full Act is published by the Department of Justice Canada at laws-lois.justice.gc.ca.

Sudbury Tax Centre

The CRA office that processes Disability Tax Credit applications and Notices of Objection. The mailing address for DTC objections is Chief of Appeals, Canada Revenue Agency, Sudbury Tax Centre, PO Box 20000, Station A, Sudbury ON P3A 5C1. Applications and supporting documents can also be submitted digitally through CRA My Account.