How to Transfer the Disability Tax Credit Between Family Members

Yes. If a person approved for the Disability Tax Credit cannot use all of the non-refundable disability amount, an eligible supporting family member may claim the unused portion. The person with DTC approval is considered first, then the transfer is claimed on the supporting person's tax return using the line that matches the relationship.

This guide explains the transfer rules, the CRA lines to use, the 2025 amounts, retroactive claims and the current Form T2201 filing rules. It is written for families in Quebec and elsewhere in Canada. Provincial and territorial disability amounts vary, so this article does not quote them.

Can the Disability Tax Credit be transferred to a family member?

Yes. The unused portion of the Disability Tax Credit may be transferred when the person approved for the DTC cannot use the entire disability amount against their own federal tax. A spouse, common-law partner or supporting person for a dependant may claim the transfer when the CRA relationship and support rules are met.

The key word is unused. The person approved for the DTC is considered first. If their federal tax is already reduced to zero before the full disability amount is used, the remaining eligible portion may be available to transfer. The transfer does not move DTC approval to somebody else and does not change whose impairment was certified.

The DTC is a non-refundable credit. For 2025, the federal non-refundable rate is about 15%, so the disability amount can reduce federal tax by roughly $1,500 when enough tax is payable. Any excess over the tax owed is not paid out. That is why a transfer can matter in a family where the approved person cannot use the full amount.

Who can claim a transferred Disability Tax Credit?

A spouse or common-law partner may claim an unused amount through the spouse transfer line. A person supporting a dependant may use the dependant transfer line if the CRA requirements are met. Relationship alone is not enough. The person approved for the DTC must have an unused amount, and the claimant must fit the applicable transfer route.

For a dependant transfer, support commonly means help with basic needs such as food, shelter or clothing. Keep records that show the family relationship, the support provided and the years involved. The CRA may ask for details, especially when more than one person could reasonably appear to be a supporting person.

Do not split the same unused amount across returns without checking the CRA calculation. A published disability amount is the maximum base used in the calculation, not a promise that the full figure can be transferred. The actual tax result depends on the approved person's return and the receiving person's federal tax payable.

The eligibility path starts with the person who has the impairment, not the relative who hopes to claim the transfer. The CRA must approve the DTC application. A medical practitioner certifies the effects of the impairment, then the approved disability amount is claimed on a tax return. DTC approval is also required to open and maintain an RDSP.

How do you transfer the DTC to a family member?

First, complete the DTC application for the person whose impairment is being certified. After CRA approval, calculate how much of the disability amount that person can use. Claim any eligible unused portion on line 31800 for a dependant or line 32600 for a spouse or common-law partner, and retain the supporting records.

The process has two distinct parts: apply, then claim. Form T2201 establishes DTC eligibility. The income tax return applies the approved disability amount for each covered year. Filing a tax return with a transfer does not replace the DTC application, and submitting Form T2201 does not automatically amend past returns.

• Start the DTC application online in a CRA account or use the latest paper Form T2201.
• Ask the medical practitioner to certify the effects of the impairment in the relevant section.
• Wait for the CRA decision before claiming the disability amount.
• Review the approved years and the person's own tax situation.
• Use the transfer line that matches the family relationship.
• Keep the approval notice, returns and support records together.

REEI.ca can help families prepare a Disability Tax Credit application and understand what information the medical practitioner needs. No service can promise approval. The CRA makes the decision based on the certified effects of the impairment and the information submitted.

What should you keep with the tax records?

Keep the CRA approval notice, the version of Form T2201 used, the tax returns for the approved years and records of the support provided. If the CRA adjusts the approved years or asks for more information, those documents make it easier to trace which disability amount was claimed by which family member.

Which tax return line should you use for a DTC transfer?

Use line 31800 when claiming a disability amount transferred from a dependant. Use line 32600 when the amount comes from a spouse or common-law partner. The approved person uses line 31600 for their own disability amount. Other lines matter when child care, attendant care, disability supports or medical expenses affect the return.

These line numbers do different jobs. Line 31800 is not a general family transfer line, and line 32600 is not used for a dependant outside the spouse or common-law partner route. Review the relationship and the approved person's own claim before choosing the line.

For the CRA's current explanation of the disability amount for self, see the official line 31600 guidance. The CRA's DTC claiming page lists the amounts by year and explains retroactive claims.

When comparing possible claimants, focus on the correct relationship route, the support provided and the tax payable on each return. The family member with the highest income is not automatically the right claimant. The CRA rules and the unused portion come first.

How much DTC can be transferred for 2025?

For the 2025 tax year, the disability amount is $10,138 for a person who is 18 or older. A child under 18 may also have a $5,914 supplement, for a combined amount of $16,052 before any reduction. Only the portion not used on the approved person's return may be transferred.

The amount in the table is not a cash payment. Because the DTC is non-refundable, the tax reduction depends on federal tax payable. The approved person may need all, some or none of the published amount on their own return. Only what remains eligible can move to a supporting family member.

When can the child supplement be reduced?

The supplement for a child under 18 can be reduced when child care or attendant care expenses were claimed for the child, or when the child claimed specified disability supports or attendant care expenses. Review these lines before estimating what may remain available to transfer.

This reduction rule is one reason not to estimate a child transfer from the combined published amount alone. Use the actual return information for the year. Provincial and territorial credits follow separate rules and amounts, which vary by province.

Can you transfer the DTC for past tax years?

Yes, retroactive DTC claims can cover up to 10 years when the CRA approves eligibility for those years. Each return uses the disability amount and child supplement published for that specific year. A past-year transfer can reduce tax that was payable, but the non-refundable credit does not guarantee a refund.

For each approved year, work in the same order. Determine the approved person's own use, apply any child supplement reduction, then calculate the unused portion under the correct transfer route. The REEI.ca calculator can help organize an estimate, but the filed returns and CRA adjustments determine the result.

Past-year work should be based on the disability amount for that year, not the current amount. Keep a year-by-year record of who claimed the credit and on which line. This helps prevent overlap and makes a CRA adjustment easier to review.

What changes for Form T2201 on September 8, 2026?

As of September 8, 2026, the CRA no longer accepts versions of Form T2201 from before 2023. Paper applicants must download the latest form and mail it to their tax centre. The online DTC application in a CRA account is processed faster than paper and avoids using an outdated form.

Since July 14, 2026, the submit-documents section of a CRA account can no longer be used to send a DTC application unless the CRA specifically asks for more information. Start through the online DTC application or use the current paper route. Do not upload an old form through the general document channel.

The form sections separate the applicant's information from the medical practitioner's certification. Check the current Form T2201 page before printing. The CRA also published a 2026 filing update explaining the September cutoff and the change to online document submission.

Does a DTC transfer affect other disability benefits?

The transfer itself is a tax-return calculation, while DTC approval can also unlock or support access to other programs. Approval is required to open and maintain an RDSP. It is also one condition for the Child Disability Benefit. These programs have separate eligibility, income and payment rules, so do not treat them as part of the transfer.

The Child Disability Benefit also requires eligibility for the Canada Child Benefit and the DTC. The Canada Disability Benefit is a different, newer program. A family can review RDSP opening support after DTC approval, but the RDSP decision remains separate from who claims an unused disability amount on a tax return.

Frequently asked questions

Can the Disability Tax Credit be transferred to a family member?

Yes. A person approved for the DTC may transfer the unused portion of the disability amount when they cannot use it all against their own tax. The receiving family member must qualify under the CRA transfer rules and claim it on the line that matches the relationship.

Which line is used to claim a transferred DTC?

Use line 31800 for a disability amount transferred from a dependant. Use line 32600 for amounts transferred from a spouse or common-law partner. The person approved for the DTC uses line 31600 for the disability amount they claim for themselves before any unused portion is transferred.

Does the person with DTC approval claim the amount first?

The person approved for the DTC is considered first because the transfer covers only the unused portion. Their own tax situation determines how much of the disability amount remains available. A supporting family member should not treat the full published amount as automatically transferable or as a guaranteed refund.

How much is the Disability Tax Credit amount for 2025?

For the 2025 tax year, the disability amount is $10,138 for someone who is 18 or older. The supplement for a child under 18 is $5,914, for a combined amount of $16,052 before any supplement reduction. Only an unused portion may be transferred.

Can a DTC transfer be claimed for past tax years?

The CRA allows retroactive DTC claims for up to 10 years when eligibility covers those years. Each return uses the disability amount and child supplement published for that year. Approval for earlier years does not guarantee a refund because the DTC is non-refundable and depends on tax payable.

What changes on September 8, 2026 for Form T2201?

As of September 8, 2026, the CRA no longer accepts versions of Form T2201 from before 2023. Paper applicants must use the latest form and mail it to their tax centre. The online DTC application in a CRA account is processed faster than a paper application.

Is a transferred DTC amount paid as cash?

No. The DTC is a non-refundable tax credit. It can reduce federal income tax owed, but any amount beyond the tax payable is not paid out. A transfer can help a qualifying supporting family member use an amount that the person approved for the DTC could not use themselves.

How can REEI.ca help with a DTC transfer?

REEI.ca can help you prepare the DTC application, organize the medical practitioner's information and understand the next steps after a CRA decision. The team can also explain how DTC approval connects to opening an RDSP. The CRA decides eligibility, and the tax return determines whether an unused amount can be transferred.

Before filing, confirm the approved years, the current Form T2201 route, the approved person's own claim and the relationship-based transfer line. That sequence protects what matters most: a supportable claim based on the CRA decision and the family's actual tax returns.