🕛 Estimated Reading Time: 2 minutes
Parents often struggle with the financial demands of raising a child living with autism and planning for a future when their child will need support. Many parents don’t realize they could be leaving thousands of dollars on the table in disability-related tax benefits and savings opportunities. If you’re supporting a child with autism, it’s important to understand what financial assistance is available to you.
Disability Tax Credit (DTC): Reduce Your Tax Bill
The Disability Tax Credit (DTC) is a non-refundable tax credit that helps individuals with disabilities—or their supporting family members—lower their income tax.
Eligibility:
A medical practitioner must certify that your child has a severe and prolonged impairment.
Eligibility is determined based on how the impairment affects daily life (e.g., communication, personal care, mobility).
If approved, this credit can be claimed yearly at tax time, potentially leading to significant savings. Learn more about the Disability Tax Credit.
Child Disability Benefit (CDB): Monthly Financial Support
The Child Disability Benefit (CDB) provides tax-free monthly payments to families of children under 18 who are eligible for the DTC.
Maximum annual benefit: $3,411 per child per year ($284.25 per month) (applies to the July 2025 – June 2026 rate and is indexed annually.).
Amount varies based on family income, with lower-income families receiving more.
Paid alongside the Canada Child Benefit (CCB).
Canada Disability Benefit: Support into Adulthood
Financial support doesn’t end when your child turns 18. The federal Canada Disability Benefit provides direct, tax-free monthly financial support to low-income working-age adults (ages 18–64) who are DTC-eligible.
Maximum Benefit: Up to $204.20 per month ($2,450.40 annually).
Application Required: When turning 18, an application through Service Canada and annual tax filing are required to receive this benefit.
Registered Disability Savings Plan (RDSP): A Long-Term Financial Safety Net
Once approved for the DTC, your child is also eligible for an RDSP—a savings plan designed to provide long-term financial security.
Why start an RDSP?
Government Contributions: The Canadian government matches contributions up to 300% through the Canada Disability Savings Grant (CDSG)—up to $3,500 per year (max $70,000 lifetime).
Low Income Support: Lower-income families may also qualify for the Canada Disability Savings Bond (CDSB), which provides up to $1,000 annually ($20,000 lifetime) without requiring contributions.
Tax-Deferred Growth: While contributions are not tax-deductible, investment growth is tax-free until withdrawn.Savings grow tax-free until withdrawn.
An RDSP can be set–up at your local financial institution (bank) or with your financial advisor. You do not need to supply proof of diagnosis when meeting to set-up an RDSP.
Learn more about RDSPs and eligibility requirements: Government of Canada RDSP Overview
Take Advantage
Understanding these financial supports can help reduce your current tax burden and secure your child’s future. To learn more about how these options fit into your financial plan, consider speaking with an accountant or financial advisor who specializes in disability-related benefits.
Disclaimer: Lake Ridge Community Support Services is not a financial, insurance, or tax expert. While this information is thoroughly researched and provided as a supportive guide, families should seek professional expert advice tailored to their specific financial or legal situation. Please note that details and figures mentioned in this post are accurate as of the publication date and may change over time.