4 underused tax and monetary advantages Canadians are overlooking

There are many saving accounts, tax advantages, and federal and provincial applications out there to Canadians. Right here’s a round-up of 4 alternatives that you could be be lacking out on. 

Canadian Dental Care Plan

The Canadian Dental Care Plan (CDCP) was first launched for youngsters, seniors, and adults eligible for the incapacity tax credit score with a phased rollout. However in June 2025, it was expanded to all Canadian residents, topic to situations. The CDCP is now out there to anybody who doesn’t have entry to dental insurance coverage. 

A taxpayer and their partner or common-law accomplice (if relevant) should have filed tax returns for the earlier 12 months to find out household revenue. If their adjusted household internet revenue is lower than $90,000, the federal authorities could partially cowl a variety of dental providers. These providers embrace all the things from diagnostic and preventive providers to orthodontic providers.

Canadian Dental Care Plan enrollment just isn’t automated. You want to apply on-line utilizing your My Service Canada Account (MSCA). You possibly can entry the CDCP part in your MSCA dashboard or name Service Canada at 1-833-537-4342. (Learn extra about how the CDCP works.)

Residence accessibility expense tax credit score

For those who carry out qualifying renovations on an eligible dwelling, you might be able to declare a federal non-refundable tax credit score as much as $20,000 for dwelling accessibility bills. This may yield a tax refund of as much as $3,000 per 12 months.

A qualifying particular person is somebody who’s 65 or older on the finish of the tax 12 months, or who’s eligible for the incapacity tax credit score (DTC) at any time throughout the tax 12 months.

You may additionally have the ability to declare the credit score in case you are an eligible particular person making a declare for one of many above qualifying people. In different phrases, in case you are associated to somebody 65 or older or who qualifies for the incapacity tax credit score, you might be able to declare the house accessibility bills.

The Canada Income Company (CRA) identifies two major situations:

1. A qualifying renovation is a renovation or alteration that’s of a permanent nature and is integral to the eligible dwelling (together with the land that varieties a part of the eligible dwelling).
2. The renovation should meet both of the next situations:
   • Enable the qualifying particular person to achieve entry to, or be cell or purposeful inside, the dwelling
   • Scale back the danger of hurt to the qualifying particular person inside the dwelling or in having access to the dwelling

There isn’t a particular record of qualifying renovations since this might be unimaginable to offer.

You can’t declare prices for instruments or on your personal labour, however bills paid to a contractor or to buy supplies will typically qualify. (Be taught extra about claiming dwelling accessibility bills.)

First dwelling financial savings account

First dwelling financial savings accounts (FHSA) are comparatively new, and so they’re nonetheless not broadly used. Launched in 2023, these accounts assist Canadians save for the acquisition of a primary dwelling in a tax-effective means. They mix the perfect options of registered retirement financial savings plans (RRSPs) and tax-free financial savings accounts (TFSAs).

FHSA contributions are tax-deductible, like RRSP contributions. You possibly can contribute as much as $8,000 per 12 months and as much as $40,000 in complete. There isn’t a most withdrawal.

Withdrawals are tax-free when used for the acquisition of an eligible dwelling. The account can keep open for as much as 15 years. If somebody doesn’t use the account for a house buy, they’ll switch the funds on a tax-deferred foundation to their RRSP.

A guardian can provide a baby cash to contribute to their FHSA. There are not any hostile tax or attribution points. This generally is a good technique if a guardian intends to assist a baby with a down fee anyway.

Be taught extra: How FHSAs work (and the perfect choices in Canada)

Incapacity tax credit score

The incapacity tax credit score (DTC) is a non-refundable tax credit score that gives entry to different alternatives like financial savings accounts and authorities advantages. It’s out there to Canadians with a extreme and extended bodily or psychological impairment.

The DTC may be very underused. Solely 1 / 4 of the Canadians who’re probably eligible for the tax credit score have utilized for it, in accordance with the CRA’s incapacity advisory committee.  

An applicant should have a marked restriction in considered one of these classes to qualify:

• Strolling
• Psychological features
• Dressing
• Feeding
• Eliminating (bowel or bladder features)
• Listening to
• Talking
• Imaginative and prescient
• Life-sustaining remedy

If an individual has vital limitations in two classes when impairment doesn’t meet the standards in a single class for a marked restriction, they could nonetheless qualify for the DTC.

A medical practitioner should certify the impairment. Functions could be submitted on-line or by cellphone utilizing a CRA digital type or by mail utilizing a paper type.

If the applying is permitted, the incapacity tax credit score can save over $2,000 per 12 months, relying on a taxpayer’s province or territory of residence. You too can apply retroactively for as much as 10 years of previous tax refunds.

If a taxpayer’s revenue is low and they don’t owe tax, they are able to switch the tax credit score to a supporting member of the family to scale back their tax.

The DTC supplies entry to 2 essential applications.

1. Registered incapacity financial savings plan (RDSP): This can be a tax-deferred financial savings account with matching contributions from the federal government. The Canada Incapacity Financial savings Grant can present matching grants of 100%, 200%, or 300% of contributions, as much as a restrict, relying on the beneficiary’s adjusted household internet revenue. For lower-income beneficiaries, the Canada Incapacity Financial savings Bond supplies as much as $1,000 of extra deposits yearly, as much as $20,000 complete, with no contributions required. (Be taught extra about opening an RDSP.)
2. Canada Incapacity Profit (CDB): This new program supplies month-to-month funds to those that qualify for the DTC and who’re between 18 and 64 years previous. The primary month of eligibility was June 2025, with funds starting July 2025. The utmost for July 2025 by means of June 2026 is $200 monthly. The profit is means examined, so it’s payable to low-income taxpayers based mostly on their adjusted household internet revenue. (Be taught the right way to apply for the CDB.)

The underside line

One of many issues with having so many various financial savings accounts and federal, provincial, and territorial advantages is that they are often troublesome to navigate. However for those who take the time, it may be profitable and put more cash into your pocket.

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