4 underused tax and monetary advantages Canadians are overlooking

There are many saving accounts, tax advantages, and federal and provincial applications obtainable 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 circumstances. The CDCP is now obtainable to anybody who doesn’t have entry to dental insurance coverage. 

A taxpayer and their partner or common-law associate (if relevant) will need to have filed tax returns for the earlier 12 months to find out household earnings. If their adjusted household web earnings is lower than $90,000, the federal authorities might partially cowl a variety of dental companies. These companies embrace every part from diagnostic and preventive companies to orthodontic companies.

Canadian Dental Care Plan enrollment is just not computerized. You should 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.)

House accessibility expense tax credit score

For those who carry out qualifying renovations on an eligible house, you might be able to declare a federal non-refundable tax credit score as much as $20,000 for house 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 might also be capable of declare the credit score if you’re an eligible particular person making a declare for one of many above qualifying people. In different phrases, if you’re 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 circumstances:

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 kinds a part of the eligible dwelling).
2. The renovation should meet both of the next circumstances:
   • Enable the qualifying particular person to realize entry to, or be cellular or useful inside, the dwelling
   • Scale back the chance of hurt to the qualifying particular person throughout the dwelling or in having access to the dwelling

There isn’t a particular listing of qualifying renovations since this could be not possible to offer.

You can not declare prices for instruments or on your personal labour, however bills paid to a contractor or to buy supplies will usually qualify. (Study extra about claiming house accessibility bills.)

First house financial savings account

First house financial savings accounts (FHSA) are comparatively new, they usually’re nonetheless not broadly used. Launched in 2023, these accounts assist Canadians save for the acquisition of a primary house in a tax-effective method. They mix the very best 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 house. The account can keep open for as much as 15 years. If somebody doesn’t use the account for a house buy, they will switch the funds on a tax-deferred foundation to their RRSP.

A mother or father may give a toddler cash to contribute to their FHSA. There are not any opposed tax or attribution points. This generally is a good technique if a mother or father intends to assist a toddler with a down fee anyway.

Study extra: How FHSAs work (and the very best 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 obtainable to Canadians with a extreme and extended bodily or psychological impairment.

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

An applicant will need to have a marked restriction in one in all 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 will be submitted on-line or by cellphone utilizing a CRA digital kind or by mail utilizing a paper kind.

If the appliance is authorized, the incapacity tax credit score can save over $2,000 per 12 months, relying on a taxpayer’s province or territory of residence. It’s also possible to apply retroactively for as much as 10 years of previous tax refunds.

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

The DTC gives entry to 2 essential applications.

1. Registered incapacity financial savings plan (RDSP): It is 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 web earnings. For lower-income beneficiaries, the Canada Incapacity Financial savings Bond gives as much as $1,000 of further deposits yearly, as much as $20,000 complete, with no contributions required. (Study extra about opening an RDSP.)
2. Canada Incapacity Profit (CDB): This new program gives month-to-month funds to those that qualify for the DTC and who’re between 18 and 64 years outdated. 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 per thirty days. The profit is means examined, so it’s payable to low-income taxpayers based mostly on their adjusted household web earnings. (Study how one can 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 tough to navigate. However if you happen to take the time, it may be profitable and put more cash into your pocket.

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