Recommendations
- Recommendation 1: That the government guarantee income adequacy by increasing the Canada Disability Benefit to a level that ends disability poverty.
- Recommendation 2: That the government replace the restrictive DTC disability definition with a new broader definition and grant automatic DTC eligibility to individuals receiving disability benefits through provincial/territorial social assistance programs.
- Recommendation 3: That the government commit to direct reimbursement of medical practitioners for completing DTC applications.
- Recommendation 4: That the government replace the DTC application with a streamlined, plain-language form.
- Recommendation 5: That the government reduce the use of unnecessary temporary DTC certificates and establish a simplified renewal process nationwide.
Introduction
As the point of access to 17 federal disability programs and a growing number at the provincial and territorial level, the Disability Tax Credit (DTC) has become Canada’s primary gateway to disability supports.
Unfortunately, this gateway is too narrow for some and too difficult to navigate for others. Statistics Canada estimates the DTC is claimed by 14.6 per cent of persons with disabilities, and this number increases to only 19.5 per cent of persons with severe disabilities and 34.8 per cent of those with very severe disabilities.[1]
Disability supports should be available to all people with disabilities who need them, and no eligible recipient should be denied access because of administrative or financial barriers.
Canada’s Disability Inclusion Action Plan promises a modern approach to defining disability across the federal government and solutions to the challenges that people with disabilities face in accessing federal programs and benefits.[2]
Budget 2026 should advance this commitment through the following priority actions:
1. Guarantee income adequacy by increasing the Canada Disability Benefit to a level that ends disability poverty.
The Canada Disability Benefit Act commits the federal government to reducing poverty and supporting the financial security of working-age persons with disabilities. The current benefit amount falls dramatically short of that legislative objective. At a maximum of $200 per month ($2,400 per year), the Canada Disability Benefit will not lift recipients out of poverty in any province or territory. [3]
People with disabilities are twice as likely to live in poverty as Canadians without disabilities, and the costs of living with a disability – including medications, devices, therapies, accessible housing, and transportation – are substantially higher than for the general population. [4] A benefit of this size cannot meaningfully close that gap.
Budget 2026 should commit to a clear, time-bound plan to raise the Canada Disability Benefit to a level that achieves the legislative objectives of the Act: one that meets basic needs, improves the financial security of people with disabilities, and, together with provincial and territorial supports, ends disability poverty in Canada. The federal government should also ensure that the benefit is not clawed back by other income supports, insurance providers, or tax measures, and that income thresholds and eligibility rules do not exclude people living in deepest poverty.
2. Replace the restrictive DTC disability definition with a new broader definition and grant automatic DTC eligibility to individuals receiving disability benefits through provincial/territorial social assistance programs.
The Disability Tax Credit uses a particularly complex definition of disability considered to be among the most restrictive of all disability support programs in Canada.[5] As a result, it shuts out hundreds of thousands of people with disabilities who qualify for a disability-related social assistance program.[6]
Budget 2026 should commit to a process for broadening the definition of disability so it is inclusive of all provincial and territorial disability definitions, ensuring that a person receiving disability support through social assistance in any province or territory will also qualify for federal benefits. Once a broader definition is in place, the federal government should work with provinces and territories to create a seamless data sharing process to facilitate automatic qualification for federal disability benefits.
3. Commit to direct federal reimbursement of medical practitioners for completing DTC applications, similar to CPP Disability applications.
Another critical barrier is the fees that medical practitioners charge for completing the DTC form. The federal government recently calculated an average fee of $125 based on a review of fee schedules; however, experience from frontline organizations across the country suggests fees are often much higher, especially for complex cases. Previous federal budgets have promised a partial reimbursement system, but this leaves out too many applicants. Budget 2026 should commit to direct federal reimbursement of medical practitioners – something already in place for practitioners who complete CPP Disability applications.[7]
4. Replace the DTC application with a streamlined, plain-language form
No government program should be so burdensome that it gives rise to a for-profit industry of “promoters” devoted solely to providing navigation support, yet this describes the DTC today. An overhaul is long overdue.
On average, it takes a physician more than 36 minutes to complete their portion of the initial DTC application.[8] In complex situations, it can take hours. Despite small improvements, the form remains overly long, complex, and poorly designed. It should be replaced with a new streamlined, plain-language application, tested with people with disabilities. Functional assessment questions should be consolidated to reduce duplication and confusion, and applicants should be empowered to complete the functional assessments themselves, with clinicians confirming accuracy rather than acting as form writers.
5. Reduce the use of unnecessary temporary DTC certificates and establish a simplified renewal process nationwide.
Too many DTC recipients are forced to repeat the application multiple times. About one-third of DTC certificates received in 2022 were temporary in nature, and there is evidence that some temporary certificates are awarded to people with lifelong disabilities whose circumstances are highly unlikely to change. [9] Requiring repeated applications causes unnecessary stress and expense on applicants and on our health system. Budget 2026 should commit to reducing the use of unnecessary temporary certificates and to establishing a simplified renewal processes nationwide, building on the Manitoba pilot.[10]
[1] McDairmid, C. & Choi, R. (2026). Technical report on disability measurement in Canada. Statistics Canada. https://www150.statcan.gc.ca/n1/pub/89-654-x/89-654-x2026001-eng.htm
[2] Government of Canada. (2022). Canada’s Disability Inclusion Action Plan. https://www.canada.ca/en/employment-social-development/programs/disabil…
[3] Maytree. (2026). Social Assistance Summaries, 2025. https://maytree.com/publications/social-assistance-summaries-2025-lates…
[4] Statistics Canada. A demographic, employment and income profile of persons with disabilities aged 15 years and over in Canada, 2022. https://www150.statcan.gc.ca/n1/pub/89-654-x/89-654-x2024001-eng.htm
[5] Oliveira, T. & White, A. (March 2026). “Definitions of Disability” (within Social Assistance Summaries, 2025). Maytree. https://maytree.com/changing-systems/data-measuring/social-assistance-s…
[6] Ibid.
[7] Government of Canada. (2026). “Information for health care professionals.” https://www.canada.ca/en/services/benefits/publicpensions/cpp-disabilit…
[8] Disability Without Poverty. (2026). Fix the Disability Tax Credit (DTC): Urgent Reform Needed to Support Canadians. https://www.disabilitywithoutpoverty.ca/en/dwp-media/fix-disability-tax…
[9] Disability Advisory Committee. (2024). Fifth Annual Report of the Disability Advisory Committee. https://www.canada.ca/en/revenue-agency/corporate/about-canada-revenue-…
[10] Doctors Manitoba. (2025). Manitoba Pilots Shorter DTC Renewal Form. http://doctorsmanitoba.ca/news/mb-pilots-shorter-dtc-form