Claiming autism therapy costs on Canadian taxes

ABA therapy costs may be eligible for the Medical Expense Tax Credit (METC) if a licensed health professional has prescribed the treatment. This generally means obtaining a written referral or prescription from your family doctor, paediatrician, or another licensed health professional before or at the time services begin. Without a prescription, the CRA may disallow the claim. Keep all receipts and the written prescription in your tax records. Because CRA rules and eligible expense categories can change, confirm eligibility with a tax accountant or by calling the CRA before filing.

The Medical Expense Tax Credit (METC) is a non-refundable federal tax credit claimed on Line 33099 of your T1 return (for your own, spouse's, or common-law partner's expenses) or Line 33199 (for dependants claimed on your return, including your child). Eligible expenses are those exceeding 3% of your net income or the annual threshold (approximately $2,635 for the 2025 tax year, this threshold is indexed annually). The federal credit rate is 15% on eligible expenses above the threshold. Ontario also has a provincial medical expense credit. Claimable expenses that may apply for autism therapy include: ABA therapy (if prescribed), SLP, OT, psychological assessments, autism diagnostic assessments, medications, and certain medically necessary devices.

The Disability Tax Credit (DTC) is a non-refundable federal tax credit for individuals with a severe and prolonged impairment in physical or mental functions. Apply using Form T2201, completed by your family doctor or specialist. If approved, the DTC gives approximately $9,428 in federal disability amount for 2025 (supplemented for children under 18), resulting in a credit of roughly $1,400–$4,000 annually depending on your income and provincial credits. Critically, DTC approval also unlocks: (1) the Child Disability Benefit, a monthly federal payment up to $3,480/year (2026–27 benefit year); (2) RDSP eligibility; (3) housekeeper and attendant care expense deductions. Apply as soon as autism is diagnosed, retroactive DTC approval may allow amended returns for up to 10 years.

The Registered Disability Savings Plan (RDSP) is a federal savings vehicle available only to DTC-approved individuals. Once open, it earns the Canada Disability Savings Grant (CDSG), up to $3,500/year (income-tested) in federal matching grants, and the Canada Disability Savings Bond (CDSB), up to $1,000/year for lower-income families, with no contribution required. Lifetime limits: $70,000 in grants, $20,000 in bonds. The RDSP compounds tax-sheltered. Grants and bonds must be repaid if the plan is closed within 10 years of the last government contribution ("holdback period"). The RDSP does not reduce ODSP eligibility (as of 2014 ODSP reforms). Open one as early as possible after DTC approval, the grant/bond years lost cannot be recovered retroactively beyond a 10-year lookback.

Respite care costs, paid to a person who provides respite to enable a parent to work, seek work, or attend school full-time, may qualify as child care expenses on Schedule B of the T1, subject to income limits. Additionally, attendant care expenses for children who need ongoing supervision due to disability may be deductible. Prescriptions for therapy, medically necessary supplements, and some adaptive devices may also qualify under the METC. Because the interaction between child care expenses, METC, and disability credits is complex, and because claiming one may reduce the value of another, families paying significant therapy costs are strongly encouraged to work with a tax accountant who has experience with disability tax planning.