Disability tax credit applications getting faster in July

Canadians applying for the disability tax credit (DTC) should know about changes kicking in next month that aim to speed up the process.

On Tuesday, the Canada Revenue Agency (CRA) announced updates designed to help process disability tax credit applications faster. 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 key to qualifying for other benefits, including the Canada Disability Benefit, the Child Disability Benefit, and the Registered Disability Savings Plan.

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. Instead, the CRA is urging Canadians to use the online disability tax credit application form, which the agency says it can process more quickly than paper.

The CRA noted that if more information is needed to review an application, the agency will contact applicants directly through their CRA account or by mail, with instructions and a case reference number included.

The online form is always the latest version, ensuring it meets all current requirements. It also prevents applicants from missing important sections and helps them skip sections they don't need. Both applicants and their medical practitioners can access the form directly online, making the process more convenient.

If someone can't apply online, paper forms are still available. However, the CRA urges applicants to download the latest version of Form T2201 (2023 or later) from the government's site. Applications submitted on older versions of the form (before 2023) will no longer be accepted beginning September 8, 2026, because they don't meet updated requirements.