In addition to being a health challenge, type 1 diabetes (T1D) can be a hefty financial burden. According to Diabetes Canada, the average annual cost of managing T1D is $5,000 per person. This cost may be higher or lower depending on a person’s health care insurance plan (public, private), their method used to administer insulin (pens, syringes, or insulin pump), and the way in which they monitor their blood glucose (capillary or continuous glucose meter).

To reduce the financial burden, the Government of Canada and provincial governments offer credits and deductions you may be eligible for.

The Disability Tax Credit (DTC)

The Disability Tax Credit (DTC) has been automatically extended to all adults and children living with T1D in Canada, without exception, since the 2021 tax year.

The DTC is a non-refundable federal tax credit that helps people living with a physical or mental disability, their caregivers, spouse, or common-law partner, reduce their income tax liability. As a non-refundable credit, it can only be used to reduce tax owed; if you have no income tax to pay, you won’t receive a refund payment for any of the DTC.

Child benefits

Parents of children living with T1D can also obtain the federal Child Disability Benefit (CDB). This is a tax-free monthly payment made to families supporting a dependent child under age 18 with a severe and prolonged impairment in physical or mental functions. It is automatically calculated when you qualify for the Canada Child Tax Benefit (CCTB).

Each province and territory may have complementary benefits (ask you accountant!). This is the case in Quebec, where parents of children living with T1D can also benefit from the Quebec Supplement for Handicapped Children if they receive a Family Allowance. To qualify, the parent and the child’s physician must complete the Application for the Supplement for Handicaped Children Family Allowance.

Tax credits for medical expenses

The Government of Canada offers a non-refundable tax credit for medical expenses over a certain amount ($2,759  or 3% of your income for 2024).

Most provinces and territories also have their own medical expense credits (eligible expenses may differ).

To find out more about eligible expenses:

The Canadian Caregiver Credit

This non-refundable federal tax credit provides financial support to Canadians who care for or support a dependent relative living with a physical or mental limitation.

For example, if you are a parent of a child living with T1D and receiving the DTC, you are automatically eligible for the CCC as long as the child is under 18 years old.

If you are an adult financially or physically supporting at least one basic need of an adult living with T1D (e.g., your partner or a parent), you may be eligible for the CCC.

To learn more about the CCC, read our blog Type 1 diabetes and the Canadian Caregiver Credit: am I eligible?

Quebec tax credit for severe and prolonged impairment in mental and physical functions

Provincial and territorial governments automatically increase the value of the DTC with a credit that varies by province or territory. In Quebec, however, you must claim the provincial non-refundable tax credit for severe and prolonged impairment in mental or physical functions. If you apply at the same time as the DTC, you simply send the federal certificate to the provincial level. If the applications are not made at the same time, you will need to complete the Certificate respecting an impairment (form TP-752.0.14).

Get the information for your own situation!

To prepare for tax season, meet a financial advisor and take the time to get informed so you can benefit from all the credits to which you are entitled in your province or territory of residence!

To learn how to apply for the DTC, tax credits for medical expenses, CCC and other credits, visit the Support self-training platform and check out the course Type 1 Diabetes and Income Taxes. If you are 18 years old and over and living with T1D, you can create a free account!

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Written by: Nathalie Kinnard, scientific writer and research assistant

Reviewed by:

  • Amélie Roy-Fleming, Dt.P., ÉAD, M. Sc.
  • Amélie Gingras, P. Dt., Diabète Québec
  • Anne-Sophie Brazeau, P.Dt., Ph.D.
  • Rémi Rabasa-Lhoret, MD., Ph.D.
  • Sarah Haag, R.N., B.Sc.

Linguistic revision : Barbara Kelly