4 Overlooked Tax and Financial Benefits for Canadians

Canadians have access to a wide range of savings vehicles, tax credits and federal and provincial programs, yet many of these options go unused. Below is a clear overview of four important programs and tax measures that people commonly overlook, along with practical details on eligibility and how to apply.

Canadian Dental Care Plan

The Canadian Dental Care Plan (CDCP) was introduced in phases, initially targeting children, seniors and adults who qualify for the disability tax credit. As of June 2025, the program expanded its eligibility and now covers a broader range of residents who do not have private dental insurance.

Participation requires that a taxpayer and their spouse or common-law partner (if applicable) have filed tax returns for the previous year so that family income can be verified. Households with an adjusted family net income under $90,000 may receive federal support for many dental services. Covered services range from diagnostic and preventive care to restorative procedures and orthodontics, depending on program rules and provider participation.

Enrollment is not automatic. Applicants must register through their My Service Canada Account. If you do not already have an account, create one to access the CDCP section of your dashboard. Assistance is also available by contacting Service Canada directly.

Home accessibility expense tax credit

The federal home accessibility expense tax credit allows qualifying homeowners to claim up to $20,000 in eligible renovation costs for home accessibility improvements, translating into a potential non-refundable tax credit that can yield up to $3,000 in tax relief in a single tax year.

To qualify, the renovation must be for a qualifying individual: someone who is 65 or older at the end of the tax year, or someone who is eligible for the disability tax credit at any point during the tax year. A family member who pays for qualifying renovations on behalf of a qualifying individual can also claim the credit.

The Canada Revenue Agency identifies two principal criteria for eligible renovations:

1. The renovation or alteration must be enduring and integral to the eligible dwelling, including the associated land.
2. The work must either enable the qualifying individual to gain access to, move around, or function within the dwelling, or it must reduce the risk of harm to the qualifying individual in the dwelling or while entering the dwelling.

There is no exhaustive list of qualifying projects because homes and individuals’ needs vary widely. In general, costs paid to contractors and purchases of materials for qualifying work will be acceptable. You cannot claim the value of your own labour or the purchase of tools used for the project.

First home savings account

First Home Savings Accounts (FHSAs) launched in 2023 to help first-time homebuyers save in a tax-efficient way. They combine benefits similar to registered retirement savings plans (RRSPs) and tax-free savings accounts (TFSAs): contributions are tax-deductible, and qualifying withdrawals for a first home are tax-free.

Annual contribution room is capped at $8,000, with a lifetime contribution limit of $40,000. There is no maximum withdrawal amount for an eligible home purchase. Accounts can remain open for up to 15 years; if funds are not used to buy a qualifying home, they may be transferred to an RRSP on a tax-deferred basis.

Parents can gift funds to a child for contribution to an FHSA without triggering adverse attribution rules. That makes the FHSA a useful option when parents plan to support a child’s down payment while still taking advantage of the account’s tax benefits.

Disability tax credit

The disability tax credit (DTC) is a non-refundable tax credit for Canadians with a severe and prolonged physical or mental impairment. Beyond directly reducing tax payable, qualifying for the DTC unlocks access to other valuable programs and savings vehicles.

The DTC remains underutilized: only a fraction of likely eligible Canadians have applied. To qualify, an applicant must have a marked restriction in at least one of the following categories, or significant limitations in two categories that together meet the criteria:

• Walking
• Mental functions necessary for everyday life
• Dressing
• Feeding
• Eliminating (bowel or bladder functions)
• Hearing
• Speaking
• Vision
• Life-sustaining therapy

Certification of the impairment by an appropriate medical practitioner is required. Applications may be submitted using the CRA’s digital form or by mail with the paper application form.

When approved, the DTC can provide tax savings often exceeding $2,000 per year depending on provincial or territorial rates. In many cases, applicants can request retroactive approval for up to 10 prior tax years and claim tax refunds for those years. If a beneficiary has little or no tax liability, they may be able to transfer the credit to a supporting family member.

The DTC also establishes eligibility for two notable programs:

1. Registered Disability Savings Plan (RDSP): A long-term savings vehicle that grows tax-deferred and may receive matching government grants and, for low-income beneficiaries, annual bonds without individual contributions.
2. Canada Disability Benefit (CDB): A monthly, means-tested payment for eligible adults aged 18 to 64. Payments began in mid-2025 and are designed to support low-income Canadians who qualify for the DTC.

The bottom line

The variety of savings accounts, tax credits and benefit programs available across federal, provincial and territorial levels can be overwhelming. Taking the time to understand eligibility criteria and application steps can uncover meaningful financial benefits—reduced tax bills, subsidies, or direct payments—that add up over time. If you think you might qualify for any of the programs described above, review the application requirements carefully or seek professional advice to make sure you claim the support you’re entitled to receive.

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