DTC Eligibility: Eligibility for the Disability Tax Credit is determined by the functional impact of a condition on basic activities of daily living — not by diagnosis alone. CRA requires that the impairment be severe (causing a marked restriction) and prolonged (lasting or expected to last at least 12 months continuously).
For a comprehensive overview of the DTC, see our Complete Guide to the Disability Tax Credit in Canada.
The Functional Impact Model
CRA's eligibility assessment is built on a simple principle: it is not what condition you have that matters — it is how that condition affects your ability to function in daily life. This is called the functional impact model.
Under this model, CRA evaluates whether your condition causes a marked restriction in one or more of ten basic activities of daily living: mental functions, walking, dressing, feeding, eliminating, hearing, vision, speaking, life-sustaining therapy, and cumulative effects.
A medical diagnosis is necessary to establish that you have a health condition, but the diagnosis alone does not determine eligibility. Two people with the same diagnosis may have very different functional impacts — one may qualify for the DTC while the other does not, depending on how severely the condition restricts their daily activities.
The Three Eligibility Pathways
There are three distinct pathways to DTC eligibility:
| Pathway | Requirement | Example |
|---|---|---|
| Marked restriction | A single basic activity of daily living is markedly restricted — the person cannot perform it or takes ~3x longer | A person with severe arthritis who takes three times longer to dress themselves |
| Life-sustaining therapy | Therapy essential to sustain life, required ≥3x/week, totalling ≥14 hours/week including prep and recovery | A person with Type 1 diabetes managing insulin therapy |
| Cumulative effects | Two or more significant limitations that together equal a marked restriction | A person with ADHD and anxiety whose combined limitations markedly restrict daily functioning |
The 90% Rule
For all three pathways, the restriction or limitation must be present all or substantially all of the time. CRA interprets this as at least 90% of the time. This means that if your condition fluctuates — for example, if you have good days and bad days — you may still qualify as long as the restriction is present at least 90% of the time overall.
This rule is particularly important for conditions like depression, chronic pain, and autoimmune disorders, where symptoms can vary in intensity from day to day.
The 12-Month Duration Requirement
The impairment must have lasted, or be expected to last, for a continuous period of at least 12 months. This does not mean the condition must be permanent — many DTC certificates are granted for a specific period (e.g., 5 years) with a reassessment date.
If your condition has lasted less than 12 months but is expected to continue, your medical practitioner can indicate this on the T2201 form, and you may still be eligible.
Common Misconceptions About Eligibility
| Misconception | Reality |
|---|---|
| "I work, so I can't qualify" | Employment status has no bearing on DTC eligibility |
| "My condition isn't severe enough" | Many common conditions (ADHD, depression, diabetes) qualify based on functional impact |
| "I need to be in a wheelchair" | Walking is just one of ten categories; mental functions, feeding, and others qualify too |
| "My doctor said I don't qualify" | Many doctors are unfamiliar with CRA's functional criteria; a DTC-experienced practitioner may assess differently |
| "I was denied before, so I can't reapply" | Most denials result from incomplete T2201 forms, not ineligibility; reapplication with better documentation often succeeds |
Next Steps
If you believe your condition may qualify for the DTC, the first step is to assess which of the ten CRA functional categories applies to your situation. You can also take our free eligibility assessment for an initial indication.
This information is for educational purposes only. CRA makes all final eligibility determinations. Last updated: February 2026.
