CCA Classes Reference
Capital assets are deducted over time via Capital Cost Allowance (CCA) — declining balance for most classes. This is the table self-employed Canadians use most.
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Guidance, not advice. We explain the rules, we don't assess your situation. Always seek financial or tax advice from your accountant, or contact CRA. Read our editorial scope →
Common CCA classes
| Class | Rate | Description | Typical assets | ½-year |
|---|---|---|---|---|
| 1 | 4% | Buildings acquired after 1987 | Commercial buildings | Yes |
| 8 Popular | 20% | Equipment, furniture, fixtures (catch-all) | Office furniture, machinery, tools >$500 | Yes |
| 10 Popular | 30% | Motor vehicles (under cost cap) | Passenger vehicles ≤ $30k + tax, vans, pickups | Yes |
| 10.1 Popular | 30% | Passenger vehicles over cap | Luxury vehicles — cost capped at $38k (2025) for 30% calc; each in its own class | Yes |
| 12 Popular | 100% | Small tools, computer software, dies/jigs | Tools < $500, application software, uniforms, linens | No |
| 13 | Term | Leasehold improvements | Straight-line over lease term + 1 renewal (min 5, max 40 years) | Yes |
| 14.1 | 5% | Goodwill & eligible capital property | Goodwill, customer lists, trademarks (post-2016) | Yes |
| 43 | 30% | Manufacturing & processing machinery | M&P equipment | Yes |
| 50 Popular | 55% | Computer hardware & systems software | Laptops, desktops, servers, OS software | Yes |
| 53 | 50% | M&P machinery acquired 2016–2025 | Replaced Class 29; phased out for post-2025 acquisitions | Yes |
| 54 Popular | 30% | Zero-emission passenger vehicles | EV under cost cap (~$61,000 for 2025) | Yes |
| 55 | 40% | Zero-emission commercial vehicles | Electric vans, trucks, taxis | Yes |
Half-year rule
For most classes, the year of acquisition allows only half the normal CCA rate on net additions (Reg. 1100(2)). Class 12 small tools and Class 14 limited-life IP are the main exceptions.
Accelerated Investment Incentive (AII)
For property acquired between 21 November 2018 and end of 2027, the half-year rule is suspended and a 1.5× boost applies to first-year CCA (Reg. 1104(4)). The boost phases out 2024–2027.
Immediate expensing for CCPCs
CCPCs (and Canadian-resident individuals / partnerships of individuals) can immediately expense up to $1.5M/year of designated "eligible property" (most CCA classes except 1–6, 14.1, 17, 47, 49, 51) acquired after 18 April 2021. The limit is shared across associated groups.
Discretionary CCA — a planning lever
You can claim any amount up to the maximum CCA each year. Useful in a low-income year: skip CCA, preserve UCC, and claim more in a higher-bracket future year. The undepreciated capital cost (UCC) carries forward indefinitely.
Recapture & terminal loss
On disposal, if proceeds exceed UCC of the pool, the excess (up to original cost) is recaptured as income (s. 13(1)). If the last asset in a class is disposed of and UCC remains, the balance is a terminal loss deductible in full (s. 20(16)).
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