This post was guest authored by Saloni Sohal, 2026 ISAC Summer Student
The federal government has proposed changes to the Disability Tax Credit (DTC) that will make it easier for people with disabilities to access this important tax support. DTC is a non-refundable tax credit that helps offset some of the extra costs associated with living with a disability. For 2026, the disability amount is $10,341, providing up to $1,448 in federal tax relief. It is also an important gateway to 17 other federal supports, including the Canada Disability Benefit (CDB), the Registered Disability Savings Plan, and the Child Disability Benefit.
ISAC welcomes these proposed improvements that will streamline the application process, expand the list of health professionals who can certify the DTC forms, and expand the number of disabilities that qualify for permanent DTC approval. We will continue to monitor their implementation as more information becomes available.
What’s Changing?
As part of the Spring Economic Update 2026, the federal government announced proposed changes to help reduce barriers in accessing DTC. If you’re planning to apply, it’s worth reviewing these updates before you submit your application.
- Simpler applications for certain long-term medical conditions
For people with certain long-lasting medical conditions, the application process will be streamlined. Instead of completing detailed assessments about how a condition affects daily functioning, medical practitioners will only need to confirm the diagnosis. If you’re planning to apply, this could make the process easier.
- More health professionals can certify applications
You may now have more options when choosing a health professional to complete your application, depending on your disability and who is involved in your care. The government is expanding who can certify certain impairments on DTC applications. Occupational therapists, physiotherapists, speech-language pathologists, and podiatrists will be able to certify impairments that fall within their professional scope of practice. In addition, provincial and territorial public guardians, trustees, and curators will be able to certify incapacity for adults under their care in certain circumstances.
- More funding for faster processing
The Canada Revenue Agency is receiving additional funding to improve the timeliness and accuracy of DTC application processing. Hopefully, this funding will make the application process more efficient and help eligible Canadians receive decisions more quickly.
Changes to the Application Process
The CRA has also introduced several administrative changes in applying for the DTC.
- As of July 14, 2026, you can no longer use the “Submit Documents” feature in CRA My Account to send DTC applications or related documents.
- Beginning September 8, 2026, versions of the form published before 2023 will no longer be accepted. If you are applying by paper, be sure to use the most recent version of Form T2201.
For more details, visit: Help speed up your DTC application – Canada.ca
New $150 Payment Helps Offset Costs, but Upfront Fees Remain a Major Barrier
The federal government has also announced a one-time $150 supplemental payment for CDB recipients to help offset the costs associated with obtaining DTC. Beginning in September 2026, eligible recipients will receive this payment automatically.
While this is a positive step, it falls short of addressing the real barrier faced by many people applying for the DTC. Many applicants cannot afford the upfront fees charged by healthcare practitioners to complete the medical forms required for the DTC application.
We continue to call on the federal government to change course by adopting an approach similar to the Canadian Pension Plan Disability Program, where healthcare practitioners are compensated directly by the government for completing disability certification forms. Requiring applicants to pay these costs upfront creates an unnecessary financial barrier that prevents many eligible people from accessing the DTC and, in turn, the CDB.
You can read more about ISAC’s recommendations here: ISAC’s Federal Budget 2025 Response
Need Help With Your DTC Application? You Don’t Have to Apply Alone
You don’t have to navigate the DTC application process alone. Applying for the DTC can feel overwhelming, but free help is available. The Canadian government has funded non-profit organizations to help people navigate the application process for the DTC and the CDB. These organizations provide direct disability benefit navigation services to people with disabilities and their families and caregivers. They can help you understand the application process, answer questions, and complete your DTC application.
ISAC has compiled a list of organizations that may be able to help: Learn about organizations that can help with the DTC and CDB
Additionally, you can find a disability benefit navigator near you.
If you think you may qualify for the DTC, we encourage you to seek support. These free services can help make the application process easier and ensure you have the information you need to access the benefits available to you.
Looking Ahead
The recent federal announcements are encouraging steps toward making the DTC more accessible. We welcome these improvements and will continue to monitor how they are implemented in practice, while advocating for further changes that reduce barriers for people with disabilities.