Unpaid Family Carers
Caring for an infirm spouse, parent, or adult child triggers a stack of tax credits and benefits most carers never claim in full. The Canada Caregiver Credit, the Disability Tax Credit transfer, and the Medical Expense Tax Credit are stackable, and EI compassionate-care benefits exist for the self-employed who opted in. This guide is statute-cited to ITA s. 118 and s. 118.2.
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Guidance, not advice. We explain the rules, we don't assess your situation. Always seek financial or tax advice from your accountant, or contact CRA. Read our editorial scope →
1. Canada Caregiver Credit (CCC) — ITA s. 118(1) B and (d)
A non-refundable credit on the federal return of $8,375 (2025) for an infirm adult dependant(spouse, common-law partner, parent, grandparent, child, grandchild, sibling, aunt, uncle, niece, nephew). Phased out by $1 for every $1 of dependant's net income above $19,666 (2025), fully eliminated at ~$28,041. "Infirm" requires a physical or mental impairment — does not require DTC eligibility.
2. Disability Tax Credit transfer to supporting person
If the dependant qualifies for the DTC (Form T2201 certified by a medical practitioner) but cannot use the full credit themselves due to low income, the unused portion can be transferred to a supporting person (ITA s. 118.3(2)). Federal DTC base amount $10,138 for 2025; supplement up to $5,914 for those under 18. Provincial DTC amounts stack on top.
The DTC application is the most under-used relief in the tax system
3. Medical Expense Tax Credit — flexible 12-month period
Per ITA s. 118.2, the METC allows expenses paid in any 12-month period ending in the tax year— not just calendar year. Carers can shift the claim window to capture clustered expenses. The threshold is the lesser of 3% of the supporting person's net income or $2,759 (2025). For caregivers with higher-income dependants, claim METC on the dependant's own return; for low-income dependants, claim on the carer's return (typically better outcome).
4. EI compassionate care and family caregiver benefits
- Compassionate care: up to 26 weeks at 55% of average earnings for caring for a family member with significant risk of death within 26 weeks (medical certificate required).
- Family caregiver — adult: up to 15 weeks caring for a critically ill adult.
- Family caregiver — child: up to 35 weeks caring for a critically ill child under 18.
- Self-employed must have opted into EI special benefits via Service Canada at least 12 months prior.
5. Registered Disability Savings Plan (RDSP)
For a dependant with DTC eligibility under 60: contributions attract Canada Disability Savings Grant (CDSG) up to 300% match on first $500, 200% on next $1,000 — up to $3,500/year, lifetime $70,000. Low-income beneficiaries also receive Canada Disability Savings Bond (CDSB) up to $1,000/year with no contribution. The carry-forward window allows recovering up to 10 prior years of grants and bonds at first eligibility.
6. Reduced earnings — protect CPP and CCB
Reduced caregiving-year earnings affect CPP retirement benefit (general drop-out provision drops lowest 17% of earning years). For mothers, the Child Rearing Provision drops years with a child under 7. CCB is recalculated based on prior-year income — a low caregiving year increases CCB the following year.
7. RRSP strategy during caregiving years
During low-income years, consider holding back RRSP deductions. Contribution still generates room; the deduction can be carried forward indefinitely and claimed in a higher-income year for a larger tax saving.
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