Disability Tax Credit for Mental Health Conditions in Canada
Can depression qualify for the disability tax credit?
Can depression, bipolar disorder, anxiety or PTSD qualify for the DTC? See the CRA mental functions test, what counts and how to apply.
Depression, bipolar disorder, anxiety and post-traumatic stress disorder (PTSD) can all make everyday life harder, but none of them qualifies for the disability tax credit (DTC) by name. The Canada Revenue Agency (CRA) looks at what the condition prevents you from doing, day after day, and asks a medical practitioner to certify it. This guide explains the CRA mental functions test, what it means for common mental health conditions, and how to apply.
Can depression qualify for the disability tax credit?
Depression can qualify when its effects meet the CRA criteria, not because of the diagnosis itself. The CRA states that eligibility for the DTC is based on the effects of an impairment, not a diagnosis or the presence of a medical condition. For depression, that usually means showing a marked restriction in the mental functions necessary for everyday life, present all or almost all of the time and lasting at least 12 months.
The CRA gives a useful counter-example in its own mental functions video. A person has been in a clinical depression for three months, has trouble sleeping, concentrating and remembering day-to-day essentials, but still lives alone with occasional visits from family and friends. The CRA concludes that this person is not markedly restricted at that point and that the condition is not yet prolonged, because it has not lasted, and is not expected to last, at least 12 months. So this person would not qualify.
The lesson is not that depression is excluded. It is that the application has to describe severity, frequency and duration in concrete terms. A practitioner who writes only "major depressive disorder" gives the CRA very little to assess.
What mental functions does the CRA assess?
The CRA lists ten mental functions necessary for everyday life. A marked restriction in any of them can support a claim under the mental functions category. The examples below are taken from the CRA page; the qualifiers matter, so they are kept as the CRA writes them.
| Mental function | Everyday examples from the CRA page |
|---|---|
| Adaptive functioning | Adapting to change, expressing basic needs, going into the community; initiating common simple transactions; carrying out basic hygiene or self-care activities; performing necessary everyday tasks |
| Attention | Showing awareness of danger and risks to personal safety; demonstrating basic impulse control |
| Concentration | Being able to focus on a simple task for any length of time; understanding and recalling information (short term) |
| Goal-setting | Making and carrying out simple plans; initiating everyday tasks |
| Judgment | Choosing clothing appropriate for the weather; making decisions about your own treatment and welfare; recognizing risks of being taken advantage of by others; understanding consequences of your actions or decisions |
| Memory | Remembering basic personal information (such as date of birth and address); remembering things that are important and of interest; remembering simple instructions |
| Perception of reality | Showing an accurate understanding of reality; separating reality from delusions and hallucinations |
| Problem-solving | Identifying everyday problems; carrying out solutions to simple problems |
| Regulating behaviour and emotions | Behaving appropriately for the situation; showing appropriate emotional responses for the situation; controlling mood to prevent risk of harm to self or others |
| Verbal and non-verbal comprehension | Understanding and responding to non-verbal information or cues; understanding and responding to verbal information |
Source: CRA, Mental functions eligibility, read November 2, 2026.
What are the three CRA criteria for mental functions?
You must meet all three criteria. The CRA checks each one separately, so a strong answer on one does not make up for a weak answer on another.
| Criterion | What the CRA requires | What the practitioner should describe |
|---|---|---|
| 1. Unable, or 3 times longer | You are unable to perform mental functions necessary for everyday life, or it takes you 3 times longer than someone of similar age who does not have the impairment, even with appropriate therapy, medication and devices | Which functions are affected, and what the person cannot do or needs far longer to do, despite treatment |
| 2. All or almost all of the time | The impairment is present all or almost all of the time, generally 90% or more | How often the restriction is present, including on better days |
| 3. Prolonged | The impairment has lasted, or is expected to last, for a continuous period of at least 12 months | When the restriction started and why it is expected to continue |
Two points are easy to miss. First, the test is applied "even with appropriate therapy, medication, and devices", so the practitioner describes functioning with treatment in place, not before it. Second, the 90% criterion is separate from the first one. A person can be severely affected during an episode and still not meet the frequency test.
Can bipolar disorder, anxiety or PTSD qualify?
Each of these conditions may qualify when its effects meet the three criteria above. The CRA does not publish a list of eligible mental health conditions, so the table below is our own illustration of how symptoms can connect to the functions the CRA lists. It is not CRA wording and it is not a prediction of any decision.
| Condition | Mental functions that may be affected (illustration) | What the practitioner may need to explain |
|---|---|---|
| Depression | Goal-setting, adaptive functioning, concentration, memory | How often the person cannot initiate everyday tasks, self-care or simple transactions without help |
| Bipolar disorder | Judgment, regulating behaviour and emotions, perception of reality, goal-setting | Whether the restriction is present all or almost all of the time, between episodes as well as during them |
| Anxiety disorders | Adaptive functioning (going into the community), concentration, problem-solving | Which everyday activities are avoided or impossible, and how often |
| PTSD | Regulating behaviour and emotions, concentration, adaptive functioning | How intrusive symptoms or avoidance restrict daily functioning, and for how long |
Bipolar disorder
Bipolar disorder raises the frequency question more than any other condition on this page. If a person is well between episodes for long periods, the restriction may not be present all or almost all of the time. If the person remains markedly restricted between episodes, for example in judgment, goal-setting or regulating emotions, the practitioner should say so and explain how often.
Anxiety disorders
For anxiety, the strongest applications describe concrete limits: being unable to go into the community, to start a simple transaction or to manage necessary everyday tasks without another person. A description of feelings alone, without the effect on function, gives the CRA little to assess against its criteria.
Post-traumatic stress disorder
PTSD can affect regulating behaviour and emotions, concentration and adaptive functioning. The practitioner should connect the symptoms to what the person can no longer do, and confirm that the restriction has lasted, or is expected to last, at least 12 months.
For ADHD and autism, which are assessed under the same mental functions category, see our dedicated guides: Is ADHD a disability in Canada? and Is autism a disability in Canada? For a broader view of conditions, read medical conditions that qualify for the disability tax credit in Canada.
What if your symptoms come and go?
Many mental health conditions are episodic. In the CRA's own video, a child's condition had been present for over a year and was likely to continue, but it was improving with medication and therapy and differed between school and home. The CRA says the impairment could not be seen to exist all or substantially all of the time, so the child would not qualify.
Practical tip, not CRA guidance: if your condition varies, the useful information is a pattern over months, not a description of the worst day. A symptom journal kept for several weeks, records of hospital stays or crisis services, and notes from people who help you every day can help your practitioner describe how often the restriction is actually present. The decision still rests on what the practitioner certifies.
Can mental health limitations combine with other limitations?
Yes, through the cumulative effect of significant limitations. If a person has a significant limitation in mental functions and a significant limitation in at least one other CRA category, their combined effects may be equivalent to a marked restriction in one category. The other categories included are walking, dressing, feeding, eliminating (bowel or bladder functions), speaking, hearing and vision. Life-sustaining therapy is not included.
Two limitations within mental functions do not count as two categories, because mental functions is one category. The limitations must also exist together all or almost all of the time, generally at least 90%. See the CRA cumulative effect page for the full criteria.
Who can certify a mental functions impairment?
According to the CRA's how to apply page, three types of medical practitioners can certify an impairment in mental functions:
- a medical doctor, who can certify all impairments;
- a nurse practitioner, who can certify all impairments;
- a psychologist, who can certify mental functions.
Part B of the application must be completed by the medical practitioner. If the applicant completes Part B, it will not be processed. If the practitioner charges a fee, you are responsible for it, but you may be able to claim it as a medical expense on your tax return. Our guide on the role of medical practitioners in a DTC application covers what the CRA may ask them after you apply.
How do you apply for the DTC for a mental health condition?
- Complete Part A online. You provide basic information about the person with the impairment, any supporting family member who may claim the credit, and consent for the CRA to contact the practitioner and to adjust past tax returns if applicable.
- Keep the reference number shown on the confirmation page. It is valid for up to 12 months and can be used once by a medical practitioner.
- Give the reference number to your medical doctor, nurse practitioner or psychologist, who completes and submits Part B.
- Wait for the CRA's review. You can apply at any time of year, but applying at the same time as you file your return may delay your tax assessment.
Our T2201 guide walks through the form in detail. If your application is refused, read how to appeal a denied DTC application.
How much is the disability tax credit worth?
The DTC is a non-refundable tax credit. You enter the disability amount on your tax return, and it reduces the income tax you may have to pay. Any unused amount may be transferred to a supporting family member; it is not refunded. The CRA publishes the following amounts.
| Tax year | Disability amount | Supplement for children under 18 | Total for a child under 18 |
|---|---|---|---|
| 2025 | $10,138 | $5,914 | $16,052 |
| 2024 | $9,872 | $5,758 | $15,630 |
Source: CRA, Claiming the credit, read November 2, 2026. The CRA page does not show a 2026 amount yet.
You may also have seen claims about a "$40,000 disability tax credit." The CRA does not publish a $40,000 DTC amount. The CRA says you may be able to claim the disability amount for up to 10 past years if you were eligible but did not claim it. Your actual tax reduction depends on the years approved and the income tax payable in each year. Our retroactive DTC calculator gives an estimate.
Why DTC approval matters for an RDSP
The disability tax credit is also the gateway to the registered disability savings plan. The CRA describes the RDSP as a savings plan intended to help an individual who is approved to receive the DTC to save for their long-term financial security. For a person living with a severe and prolonged mental health condition, that can matter more over a lifetime than the yearly tax reduction.
See RDSP eligibility requirements and our disability tax credit service if you would like help with the application. Terry can also help you start your RDSP application online.
Frequently asked questions
Does depression qualify for the disability tax credit?
Not by name. The CRA bases eligibility on the effects of an impairment, not on a diagnosis. Depression may qualify when it markedly restricts mental functions necessary for everyday life all or almost all of the time, for at least 12 months, as certified by a medical doctor, nurse practitioner or psychologist.
Can I get the disability tax credit for anxiety?
Possibly. Anxiety is assessed the same way as any other condition: by its effects on mental functions such as adaptive functioning, concentration or regulating behaviour and emotions. The restriction has to meet all three CRA criteria, and the CRA decides from what the practitioner certifies in Part B of the application.
Is bipolar disorder eligible for the disability tax credit?
It can be, when its effects meet the CRA criteria for mental functions. The key question for an episodic condition is whether the restriction is present all or almost all of the time, generally 90% or more. The practitioner should describe how often the limitations are present, not only the diagnosis.
Can a psychologist fill out the T2201 for mental health?
Yes, for mental functions. The CRA lists psychologists as medical practitioners who can certify impairments in mental functions. Medical doctors and nurse practitioners can certify all impairments. The practitioner completes Part B using the reference number you receive after submitting Part A online.
How far back can I claim the disability tax credit?
If you were eligible in past years but did not claim the disability amount, the CRA says you may be able to claim it going back up to 10 years. When you apply, you can consent to the CRA adjusting your tax returns for previous years automatically, if applicable.
Do I need the disability tax credit to open an RDSP?
Yes. The CRA describes the registered disability savings plan as a savings plan intended to help an individual who is approved to receive the disability tax credit save for their long-term financial security. DTC approval is therefore the first step before opening an RDSP for yourself or a family member.
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