Can the Disability Tax Credit be transferred to a spouse?
Yes. The Disability Tax Credit is non-refundable, so if the person with the disability does not owe enough tax to use the full amount, the unused portion can generally be transferred to a supporting spouse or common-law partner, or in some cases another supporting family member, so the value of the credit is not lost.
Here is a quiet frustration I see every tax season. Someone with a disability holds a credit they cannot fully use, because their income is low. Across the kitchen table, their spouse pays tax in full. Two people, one household, and a benefit sitting half spent. The system has an answer for that, and a lot of couples never hear it: the unused amount can move. Here is how.
Why the transfer exists
The Disability Tax Credit is a non-refundable tax credit. In plain terms, it reduces the income tax a person owes, down to zero, and then it stops. It does not create a refund on its own. So when the person with the disability has little tax owing, part of the credit can be left unused through no fault of theirs.
The transfer rule exists so that value is not wasted. If the person does not earn enough to use the full credit, it can generally be transferred to a supporting family member, so the family still benefits. The credit was earned by the person's situation. The transfer simply lets the household use it.
Who can receive the unused amount
The most common recipient is a spouse or common-law partner. If your spouse has little tax owing in a given year, they may not be able to use the full DTC amount themselves. In many situations, the unused amount can transfer to the supporting partner, putting a valuable credit to work instead of leaving part of it on the table.
A spouse is not the only possibility. In some cases, another supporting family member can claim the unused amount, such as a parent, where that person provides the basic necessities of life for the person with the disability: food, clothing, housing. The daughter who does the groceries and drives to appointments, or the son who moved a parent in, may be part of the tax picture too. Every situation has its own rules, so this needs a careful look rather than an assumption.
It is the same credit, not a second one
This point matters, because families sometimes worry they would be double claiming. They would not. Transferring the unused portion does not create a second credit. There is one credit, belonging to the person with the disability. The transfer helps a family use the one they already qualified for, instead of leaving part of it unused. Nothing is duplicated, and nothing is stretched.
Parents and children use this too
Couples are not the only households this helps. A child with a disability rarely owes tax at all, so a child's unused amount can usually be transferred to a supporting parent or caregiver. For families raising a child with a disability, this is one of the most commonly missed claims, and one of the simplest to fix once you know it exists. The approval that opens the RDSP for your child can also be putting money back in the household's pocket each year, through this transfer.
How it is claimed
In plain terms, the transfer happens on the tax return for the year, claimed by the supporting person for a year in which the person with the disability holds DTC approval. The credit amount is set federally each year and indexed to inflation, with provincial amounts on top depending on where you live, so check the current figures for the year you are filing rather than relying on last year's numbers. A good tax preparer will handle the mechanics; your job is simply to make sure they know the approval exists and who supports whom.
What the transfer does not change
The approval itself never moves. The Disability Tax Credit belongs to the person with the disability, and everything it unlocks stays with them: RDSP eligibility above all. Only the unused tax amount for the year is claimed on the supporter's return. Couples sorting out the RDSP side of married life will also want my guide to opening an RDSP for your spouse, where this same transfer appears in the household picture.
The credit was built to recognize real costs in real households. Making sure the whole household can use it is not a trick. It is the point.
Common questions
Who can receive a transferred Disability Tax Credit amount?
Most often a spouse or common-law partner. In some cases another supporting family member can claim it, such as a parent, where that person provides the basic necessities of life, like food, clothing, or housing, for the person with the disability.
Does transferring create a second credit?
No. There is only one credit, belonging to the person with the disability. The transfer simply moves the unused portion to the supporter's tax return for that year, so the value of the credit is used instead of being lost.
Can a parent claim their child's unused DTC amount?
Yes. A child who does not need the full credit to reduce their own tax can usually transfer the unused amount to a supporting parent or caregiver. This is one of the most commonly missed claims in families raising a child with a disability.
Does the transfer change who holds the DTC approval?
No. The approval always stays with the person with the disability, and everything it unlocks, like RDSP eligibility, stays with them too. Only the unused tax amount for the year is claimed on the supporter's return.
This guide sits inside our complete Disability Tax Credit guide, where the whole picture comes together.
Sources: Disability Tax Credit, Canada Revenue Agency ยท Registered Disability Savings Plan, Government of Canada.
See where you stand: the free DTC eligibility checker takes about a minute and shows whether you, or someone you care for, may qualify for the Disability Tax Credit. No signup, and no pressure.
A quick note: this post is educational, not financial advice. For guidance on your own situation, book a free conversation. You don't have to figure this out alone. I'm here to help you through every step.