By Evelyn Jacks, RWM, MFA, MFA-P, FDFS on May 29, 2026 Estimated reading time: 4 minutes

Disability tax credit changes will help the most vulnerable

By Evelyn Jacks, RWM, MFA, MFA-P, FDFS on May 29, 2026 Estimated reading time: 4 minutes

Changes to Canada’s Disability Tax Credit will make it easier to qualify, reduce CRA red tape, and expand access to valuable tax benefits and supports.

There was some really good news in the April 28, 2026 Spring Economic Update, both for people suffering from health challenges and their medical practitioners. This lucrative credit has increasingly been mired in red tape at the Canada Revenue Agency, to the detriment of people who are suffering economic losses because of a mental or physical impairment in the household. Here is what you need to know.

The Disability Tax Credit (DTC) is a non-refundable tax credit that is transferrable to supporting individuals like a spouse, parent, or grandparent if the disabled person’s income is not high enough to absorb the tax benefits.

In 2026, the amount of the credit is $10,341—and that’s significant. In real dollar terms, this amounts to a federal tax reduction of up to $1,448. When you add the provincial portion of the tax reduction, which depends on your province of residence, the DTC has a real dollar value of about $1,800.  There is an additional supplement for disabled children that further increases the tax assistance. 

A valid DTC is also a “passport“ to other federal tax assistance, including the:

Canada Disability Benefit

Child Disability Benefit 

Canada Workers........

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