Changes coming to the disability tax credit in July
Canadians who want to apply for the disability tax credit (DTC) should know about changes that are kicking in next month.
On Tuesday, the Canada Revenue Agency (CRA) announced that it has made updates that will help process disability tax credit applications faster.
“We believe Canadians deserve to feel confident, informed and supported when applying for the DTC and interacting with the CRA,” reads the announcement. “With your help, we will be able to validate your information more quickly, which helps us process your application as fast as possible.”
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The disability tax credit is non-refundable and reduces the amount of income tax paid by individuals with physical or mental disabilities, or their supporting family members.
Eligibility for the credit is a key requirement in order to be qualified for other benefits, including the Canada Disability Benefit, the Child Disability Benefit, and the Registered Disability Savings Plan, along with the Canada Disability Savings Grant and Bond.
The agency announced that starting July 14, 2026, Canadians will not be able to use the “submit documents” section of their CRA account to send disability tax credit applications or related documents.
“If we need more information to review your application, we will contact you directly through your CRA account or by mail,” stated the agency. “That letter will include instructions and a case reference number to use when submitting additional documents.”
Instead, the CRA is urging Canadians to use the online disability tax credit application form so that it can process it more quickly than by paper.
In addition to quicker results, the agency says the online form is always the latest version, ensuring it meets all current requirements. It also makes sure you avoid missing important sections and helps you skip sections you don’t need. Lastly, the CRA says both you and your medical practitioner can access the form directly online, which makes the process more convenient.
If you aren’t able to apply online, not to worry. You can still use a paper form, but the CRA noted to make sure to download the latest version of Form T2201 (2023 or later) from the government’s site.
“Once the form is complete and signed by you and a medical practitioner, mail it to your nearest CRA tax centre,” reads the announcement.
It added that applications submitted on older versions of the form (before 2023) will no longer be accepted beginning Sept. 8, 2026, because they don’t meet the updated requirements.
“You will need to submit a new application if the version of your form is from before 2023,” explained the CRA.
Changes are also coming to Canada Child Benefit payments.