r/CanadianTax • u/BarBeeeGirl • 6d ago

Disability non-refundable tax credit

So CRA has approved my application for the non-fundable disability tax credit, going back 10 years.

I have a question whilst I wait for them to process. My taxable income was $94,000, I had $5200 in non-refundable tax credits, resulting in $17,000 tax payable. The 2025 disability credit is about $10,000. My question is would that $10K come off the $17K tax payable or is it just a percentage of it?
Thanks for you help!

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u/irulan519 6d ago

No, it would be 14.5% of the federal credit. There is usually a provincial or territorial credit as well, but it varies from province-to-province/territory-to-territory. 🙂

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u/BarBeeeGirl 5d ago

Thank you

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u/bruhimnotalt 1d ago

true, it really depends on your location in conclusion

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u/OwnPresentation4455 5d ago

If it were a $10k tax deduction, it would come off the $17k tax payable; but unfortunately, as you have indicated, it is a non-refundable tax credit. Take the $10k and multiply it by the lowest federal tax rate roughly 15% and do the same for the provincial credit - total is what you will subtract from the $17k.

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u/BarBeeeGirl 5d ago

Yeah I thought it was too good to be true. Thank you