After taking two weeks off, we are back!
ISAC is running a summer website series to promote materials that will help individuals and/or their caregivers, friends, healthcare professionals and other support workers, apply for the Disability Tax Credit and the Canada Disability Benefit. We will only share materials created by trusted sources.
What is the Canada Disability Benefit?
The Canada Disability Benefit (CDB) is a new federal government benefit that provides direct income support to people with disabilities who are between 18 and 64 years old and who are eligible for the Disability Tax Credit (DTC). There are other eligibility requirements for the CDB as well, including income-related eligibility requirements. Read more about the CDB on the government’s website at this link.
What is the Disability Tax Credit?
The Disability Tax Credit is a non-refundable tax credit designed to help with costs associated with a disability. The DTC is not a monthly payment. The purpose of the DTC is to reduce the amount of income tax people with disabilities, their families, or their supporters, pay annually. This means that it can help someone pay less tax. If the person with the impairment does not owe taxes, they can transfer the DTC to a spouse or a family member. If no one in their family owes taxes, it is still worthwhile to apply for the DTC because it makes people eligible for other government benefits. Read more about the DTC on the government’s website at this link.
You may be eligible for the DTC if a medical practitioner certifies that you have a severe and prolonged impairment. You will need a medical practitioner to fill out some of the forms, and it will likely take several months for your application to be reviewed and approved. Applications for the DTC go through the Canada Revenue Agency.
How are the CDB and the DTC related?
The DTC serves as a gateway program for other income and tax benefits, including the Canada Disability Benefit.
You have to first qualify for the DTC before you can apply for the Canada Disability Benefit.
Spotlight on: The Canada Disability Benefit Estimator
Direct link to the resource: https://estimateurpcph-cdbestimator.service.canada.ca/en
Who is it meant for? Individuals and their supporters
Is it available in multiple languages and/or formats? Yes! The resource is available in French here: https://estimateurpcph-cdbestimator.service.canada.ca/fr
Why we like it:
The Estimator provides a quick way for individuals to figure out how much they might receive from the CDB for the year. This resource was created by the federal government, which is a reputable source of information.
Not everyone who is eligible for the CDB is going to be eligible for the maximum amount of $200 per month. The CDB is “income-tested”, which means that even if you are eligible for the CDB, if you earn income over a certain amount, your benefit amount may be reduced, even down to $0.
The Estimator relies on information from your tax form, specifically information on line 23600, as well as information about your “working income”. The resource also helps explain what counts as “working income”, and where you would find that information on your tax form. This makes it a reliable tool.
An important thing to note about how the CDB amount is calculated: The government uses your income tax information from the previous year to determine how much CDB you should receive in the current year. For example, from July 2025-June 2026, the amount of CDB you get will be based on your tax return from 2024. From July 2026-June 2027, the CDB amount will be based on your tax return from 2025. There is always a little bit of a lag between when your income is declared on your taxes and when you receive benefits that are calculated based on your declared income. This is how the Canada Child Benefit and other federal benefits work as well.
This tool provides estimates – so if the amount provided by the Estimator seems off, or if you have questions about how the calculation works, contact your local community legal clinic for more information. You can find your local community legal clinic by typing in your postal code at this link.
Additional info for Ontario applicants using this resource:
There is nothing additional that Ontario applicants need to consider when using this resource. The Estimator was created by the federal government and relies on the information on an individual’s federal tax return/notice of assessment.