Government proposes 3 changes to Disability Tax Credit
The federal government has proposed three changes to the disability tax credit application process in the spring economic update, aiming to make it easier for eligible Canadians to apply. The measures would keep the disability criteria the same while changing who can certify some applicants and how certain cases are processed.
The update also sets out when the changes would start. One measure would apply to the 2026 and subsequent taxation years, another would kick in 2027 for the 2026 and subsequent taxation years, and a third would apply to disability tax credit certificates issued after 2026 for the 2027 and subsequent taxation years.
Disability tax credit access
The disability tax credit is a non-refundable tax credit that reduces income tax for people with physical or mental disabilities, or for family members who support them. A successful application can also help establish eligibility for the Canada Disability Benefit, the Child Disability Benefit, the Registered Disability Savings Plan, the Canada Disability Savings Grant and the Canada Disability Savings Bond.
Applicants currently must have a medical practitioner certify the effects of their impairment to claim the credit. The spring economic update proposes to streamline the application process for people with a formal diagnosis of certain long-lasting medical conditions, while the Canada Revenue Agency would keep the authority to ask for more information to verify that disability criteria are met.
Practitioner rules in 2026
The government plans to expand the list of medical practitioners who can certify eligibility for the disability tax credit. Under the proposal, podiatrists would be added for a specific type of impairment, while physiotherapists, speech-language pathologists and occupational therapists would be allowed to certify broader types of impairment within the scope of their training and practice.
That measure would apply to disability tax credit certificates issued after 2026 for the 2027 and subsequent taxation years. A separate measure would recognize provincial or territorial public guardians and trustees as qualified to certify for adults in their care for property matters when those adults have a valid certificate of incapacity based on a medical practitioner’s assessment of mental impairment.
CRA funding and tax relief
The government says the changes are expected to provide $345 million over six years and $86 million per year ongoing in tax relief under the disability tax credit and through increased federal benefits, starting in 2025 to 2026. The spring economic update also proposes $42.5 million over five years, starting in 2026 to 2027, for the Canada Revenue Agency.
For applicants and families, the practical shift is narrow but important: the qualifying criteria stay in place, but some people should face fewer steps and a wider set of certifiers as the new rules take effect in stages across 2026 and 2027.
