4 Underutilized Taxes and Financial Benefits Canadians are ignoring

Canadians offer a large number of savings accounts, tax benefits, and federal and provincial programs. Here is a review of four opportunities you might miss.

Canadian dental care program

The Canadian Dental Care Program (CDCP) is firstly aimed at children, older people and adults to carry out phased disability tax credits. But in June 2025, it was expanded to all Canadian residents, but in the case. CDCP is now available for anyone who cannot get dental insurance.

A taxpayer and his spouse or common law partner (if applicable) must have filed a tax return to the previous year to determine the family income. If their adjusted household net income is less than $90,000, the federal government may partially cover a wide range of dental services. These services include everything from diagnostic and prevention services to orthodontic services.

The enrollment rate for the Canadian dental care program is not automatic. You need to apply online using your My Service Canada account (MSCA). You can access the CDCP section in the MSCA dashboard or call Canadian Services at 1-833-537-4342. (Read more about how CDCP works.)

House Accessibility Fees Tax Credit

If you do a qualified renovation on a qualified home, you can claim a federal non-refundable tax credit for up to $20,000 in home accessibility fees. This can generate a tax refund of up to $3,000 per year.

A qualified person is a person aged 65 or older at the end of the tax year, or a person eligible for a Disability Tax Credit (DTC) at any time of the tax year.

If you are a qualified individual claiming from one of the above qualified individuals, you may also request credit. In other words, if you are related to someone 65 or 65 years old or who is eligible for a disability tax credit, you can claim the home access fee.

The Canadian Revenue Agency (CRA) has identified two main conditions:

1. A qualified renovation is a renovation or change of a lasting nature and is an integral part of a qualified residence (including the land that forms part of a qualified residence).
2. Renovation must meet any of the following conditions:
   • Allow qualified persons to access or use mobile or features internally
   • Reduce the risk of damage to qualified individuals in the residence or the risk of obtaining a residence

There is no specific list of qualified renovations as this is impossible to offer.

You cannot ask for tools or your own labor costs, but the fees paid to the contractor or purchase materials are usually eligible. (Learn more about claiming access to the home.)

First Home Savings Account

The first housing savings account (FHSA) is relatively new, but is still not widely used. Launched in 2023, these accounts can help Canadians buy their first homes in a tax-effective manner. They combine the best features of a registered retirement savings plan (RRSP) and a tax-free savings account (TFSA).

Donations from FHSA are tax deductible, such as RRSP contributions. You can contribute up to $8,000 per year, totaling up to $40,000. There is no maximum withdrawal.

Withdrawals are tax-free when used to purchase qualified homes. The account can be maintained for up to 15 years. If someone does not use the account to purchase a home, they can transfer funds to their RRSP based on a tax basis.

Parents can give their children money to contribute to their FHSA. There are no adverse taxes or attribution issues. This may be a good strategy if parents plan to help their children with down payments.

learn more: How FHSA works (and the best choice in Canada)

Disability Tax Credit

Disability Tax Credit (DTC) is a non-refundable tax credit that provides access to other opportunities such as savings accounts and government benefits. It can be used for Canadians with severe and prolonged physical or mental disorders.

DTC is very useless. Only one in four Canadians who may qualify for a tax credit have applied for a tax credit, according to the CRA’s Disability Advisory Committee.

Applicants must have obvious restrictions in one of the categories to be eligible:

• walk
• Psychological function
• dressing
• Eat
• Elimination (intestinal or bladder function)
• hearing
• Speaking
• imagine
• Life-sustaining therapy

If a person has significant restrictions in two categories in a single category where damage does not meet obvious restrictions, they may still be eligible for DTC.

The doctor must prove the barrier. The application can be submitted online or via CRA digital forms or via mail using paper forms over the phone.

If the application is approved, the disability tax credit can save more than $2,000 per year, depending on the taxpayer’s province or residential area. You can also apply for a tax refund over the past 10 years.

If taxpayers have low incomes and do not owe taxes, they may be able to transfer tax credits to support family members to reduce taxes.

DTC provides access to two important programs.

1. Register for Disability Savings Plan (RDSP): This is a donation tax savings account, a matching donation from the government. The Canadian Disability Savings Grant can provide a matching grant of 100%, 200% or 300% contribution, but depends on the beneficiary’s adjusted household net income. For low-income beneficiaries, Canadian Disability Savings Bonds provide up to $1,000 in additional deposits each year, totaling up to $20,000 without donations. (Learn more about turning on RDSP.)
2. Canadian Disability Benefits (CDB): The new program provides monthly payments for those who are eligible for DTC and over the age of 18 to 64. The first month of eligibility is June 2025, with payments starting from July 2025. The maximum amount from July 2025 to June 2026 is US$200 per month. The benefit is a test method, so based on its adjusted net household income, it should be paid to low-income taxpayers. (Learn how to apply for CDB.)

Bottom line

One of the problems with having many different savings accounts and federal, provincial and territorial welfare is that they are difficult to navigate. However, if you take the time, it can be profitable and keep more money in your pocket.

More information from Ask Planner:

• How to deal with stocks with huge capital gains
• How do couples avoid capital gains tax on Canadian property?
• How is investment income tax in Canada?
• What to do if your pre-construction apartment has dropped value

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