March of Dimes Canada (MODC) welcomes the federal government's commitment to significant Disability Tax Credit (DTC) reform announced in its Spring Economic Update (SEU) “Canada Strong for All."

The commitments represent meaningful progress toward a more accessible and inclusive Canada through reducing barriers to the Disability Tax Credit (DTC) and increasing access to automatic tax filing.

Removing barriers to the DTC

The DTC isn't just a tax credit — it's the gateway to income security benefits like the Canada Disability Benefit, the Registered Disability Savings Plan, and other financial supports for people with disabilities of all ages in Canada.​ For too long, accessing the DTC has placed an unnecessary burden on people with disabilities in Canada and the medical practitioners who support them.​

A 2024 CRA report found the DTC was underused and underclaimed. The SEU proposes making the DTC application process easier for people with certain long‑term medical conditions (see addendum for the full list).

People with these conditions would only need their medical practitioner to confirm their diagnosis and would no longer be required to answer detailed questions about how severe their condition is or how it affects daily life. The government also proposes to allow more healthcare providers to confirm eligibility, making it easier for people to apply for the DTC using providers they already know and trust.

“These reforms reflect recommendations we've long advocated for," said Len Baker, MODC's President and CEO. “Removing the barriers that cause many people to give up before receiving the support they're entitled to is exactly what our community expects from this process."

In 2023, MODC partnered with Prosper Canada to produce A Benefit Without Barriers. This report was developed directly with people with disabilities and disability organizations across Canada and called on the federal government to make sure the design and administration of disability benefits are inclusively designed and fully accessible to all eligible people with disabilities in Canada.

Supporting broader priorities

MODC welcomes the government's ongoing commitment to automatic federal benefits and pre-filled tax returns for people with low incomes in Canada.

This program is a critical complement to the proposed DTC changes outlined in the SEU and will help make sure people with disabilities in Canada get the benefits they're entitled to receive. During an affordability crisis that hits people with disabilities harder than most, reducing barriers to tax filing and enhancing benefit access s critical progress.

We thank Prime Minister Mark Carney, Minister of Finance Francois-Philippe Champagne, Minister of Jobs and Families Patty Hajdu, and Leslie Church, Parliamentary Secretary to the Minister of Jobs and Families (Persons with Disabilities) for listening actively to our recommendations and those from the disability community on these important issues.

We look forward to making continued progress on the Canada Disability Benefit and investments in supportive housing for people with disabilities, alongside increasing attention to the need for affordable and adaptable housing options.

We'll continue to work with government, community partners, and the people we serve to make sure income and housing security for people with disabilities are prioritized at the federal level.​

For media inquiries:

Brian Hill
Communications Manager
March of Dimes Canada
bhill@marchofdimes.ca
873-355-9289​

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ADDENDUM: Conditions eligible for streamlined application process under proposed DTC changes​

The following long-lasting medical conditions are proposed for streamlined DTC application under the SEU 2026. Once passed, people with a formal diagnosis of one of these conditions will only need their medical practitioner to confirm the diagnosis. They'll no longer be required to complete the detailed sections on severity, duration, and daily living impacts.

Neurological and Cognitive Conditions

• Alzheimer's disease
• Amyotrophic lateral sclerosis (ALS) / Lou Gehrig disease
• Angelman syndrome
• Autism spectrum disorder, level 3
• Cerebral palsy (severe)
• Dementia
• Down syndrome / Trisomy 21
• Duchenne muscular dystrophy (advanced or severe)
• Huntington disease
• Intellectual disability (severe, profound, or IQ of 70 or below)
• Microcephaly
• Parkinson's disease (advanced or severe)
• Prader Willi syndrome
• Schizophrenia
• Spinal muscular atrophy, type 1 and 2
• Stroke (severe) with no functional recovery
• Tay-Sachs disease (infantile/juvenile)
• Traumatic brain injury (severe)
  

Chromosomal and Genetic Conditions

• Edwards syndrome / Trisomy 18
• Patau syndrome / Trisomy 13
• Phenylketonuria
• Progeria
  

Physical and Mobility Conditions

• Hemipelvectomy
• Hip disarticulation
• Lower limb amputation (leg or foot)
• Paraplegia
• Quadriplegia or tetraplegia
• Upper limb amputations (trans carpal or higher)
  

Sensory Conditions

• Bilateral blindness (legally blind)
• Bilateral hearing loss (severe or profound)
• Profound hearing loss in one ear and severe hearing loss in the other ear
• Relies only on lip-reading and/or sign language to understand conversations or communicate
• Sign language is primary means of communicating due to profound hearing loss or expressive aphasia
• Total mutism
  

Respiratory, Cardiac, and Organ Conditions

• Cardiac functional class of 4/IV or an ejection fraction of 20% or less
• Chronic Obstructive Pulmonary Disease (COPD), stage III or higher
• Colostomy (permanent)
• Cystic fibrosis
• Ileostomy (permanent)
• Renal (kidney) failure requiring lifelong hemodialysis or peritoneal dialysis
• Requires lifelong continuous supplemental oxygen (O2)
  

Blood Conditions

• Hemophilia A (severe)
• Sickle cell disease (severe) requiring transfusions​
  

Note: This list is proposed as part of the Spring Economic Update 2026 and is subject to parliamentary approval. The underlying eligibility criteria for the Disability Tax Credit remain unchanged. Individuals with conditions not on this list may still qualify for the DTC through the standard certification process.​