Rates and deadlines
Capital Cost Allowance Classes and Rates
20%a year for Class 8, where most furniture, equipment and tools of $500 or more belong. Rates run from 4% for buildings to 100% for small tools.
Sources checked October 20263 min read
Rates for the common classes
Capital cost allowance is how the tax system spreads the cost of an asset over its life. Each class has a rate, and each year you can claim up to that rate on the balance left in the class after earlier claims, which is why the claim shrinks over time.
| Class | Rate | What goes in it |
|---|---|---|
| Class 1 | 4% | Most buildings, depending on what they are made of and when they were bought |
| Class 8 | 20% | Furniture, appliances, machinery, tools of $500 or more each, outdoor signs |
| Class 10 | 30% | Vans, trucks and most automobiles used in the business |
| Class 10.1 | 30% | Passenger vehicles that cost more than the ceiling, one class per vehicle |
| Class 12 | 100% | Tools, medical or dental instruments and kitchen utensils under $500 each |
| Class 14.1 | 5% | Goodwill and other intangible property, since January 1, 2017 |
| Class 16 | 40% | Taxis, cars for rent or lease and heavy freight trucks |
| Class 43 | 30% | Machinery and equipment for manufacturing and processing in Canada |
| Class 50 | 55% | Computers and systems software bought after March 18, 2007 |
| Class 53 | 50% | Manufacturing and processing machinery bought after 2015 and before 2026 |
| Class 54 | 30% | Zero emission vehicles that would otherwise be Class 10 or 10.1 |
| Class 55 | 40% | Zero emission vehicles that would otherwise be Class 16 |
Key points
- Class 8 equipment and furniture: 20% a year
- Computers in Class 50: 55% a year
- Passenger vehicles capped at $39,000, zero emission vehicles at $61,000
- You can claim less than the maximum, or nothing, in any year
How the balance runs down
Leaving the first year rules aside, $10,000 of Class 8 equipment gives claims of $2,000, then $1,600, then $1,280 in its first three years, each 20% of what remains.
In the year an asset is bought, special first year rules decide how much of the rate you can claim, and they have changed several times since 2018. The CRA's class pages say which rule applies to an asset bought on a given date, and it is worth checking before the claim is made rather than after.
Vehicles
A passenger vehicle that costs more than $39,000 before tax goes into Class 10.1 on its own, and only the ceiling can be depreciated. A zero emission passenger vehicle in Class 54 has a ceiling of $61,000. Some vans and pickup trucks fall outside the passenger vehicle limits when they are used mainly to carry goods or equipment for the business; the CRA's definitions of motor vehicle and passenger vehicle decide which.
Quick answers
What is the CCA rate for computers?
55% in Class 50 for computers and systems software bought after March 18, 2007.
What is the CCA rate for a car?
30%, in Class 10 or Class 10.1. A passenger vehicle's cost is capped at $39,000 for 2026.
Do I have to claim the full CCA?
No. You can claim any amount up to the maximum, including nothing, and the unclaimed balance stays in the class for later years.
Related pages
Official sources
Call or email and we will tell you which records we need and what the work costs, in writing, before anything starts.
Important. This article provides general educational information, not legal or tax advice for a specific business. Rules, administrative policies, rates and deadlines can change. Confirm your facts and current obligations with the responsible government agency and a qualified adviser.