All About Estates

Disability Tax Credit

The 2021 Federal Budget included proposals that would see an expansion of the Disability Tax Credit to more Canadians.

The Disability Tax Credit (DTC), with a value of $1,299 for 2021, is a non-refundable credit intended to offset the impact of disability-related costs. In order to claim this credit, a taxpayer must have a certificate confirming they have a severe and prolonged impairment in physical or mental function, or be blind, and that impairment, even with appropriate treatment and devices, results in a markedly restricted ability to perform defined basic activities of daily living.

To improve accessibility to the DTC, the Budget sets forth an updated list of mental functions necessary for everyday life, adding functions such as attention, concentration, regulation of behaviour and emotions, and verbal and non-verbal comprehension, thereby expanding eligibility for the DTC.

The proposed changes to the DTC should increase the number of Canadians that meet the eligibility criteria. This improved eligibility criteria is estimated to result in an additional 45,000 people qualifying for the credit. Individuals should consult their tax and medical professionals to determine their eligibility under the broader requirements.


About Derek de Gannes
Derek A. de Gannes: Senior Director, Private Client Services of RSM Canada. RSM Canada is committed to the highest level of integrity, quality and professionalism and provides clients with solutions in the area of Audit, Tax and Transaction Services. Email:


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