CCA classes — capital cost allowance rates
Every major CRA class with its rate, depreciation method, and the types of assets that belong in it. Updated for 2026.
Declining balance (DB)
The rate applies to the remaining balance each year, so deductions are larger early and taper off. Most common method.
Straight-line (SL)
Equal deduction each year over the asset's useful or legal life. Used for leasehold improvements and limited-life intangibles.
Half-year rule
In the year you buy an asset, you can only claim 50% of the normal CCA — regardless of when in the year you bought it.
| Class | Rate | Method | Assets & examples |
|---|---|---|---|
| 1 | 4% | DB | Most buildings acquired after 1987, including rental buildings. |
| 3 | 5% | DB | Buildings acquired between 1979 and 1987. |
| 6 | 10% | DB | Wooden buildings, fences, greenhouses, portable structures. |
| 7 | 15% | DB | Vessels, canoes, rowboats, and most motorized watercraft. |
| 8 | 20% | DB | Furniture, appliances, tools over $500, display fixtures, machinery not in another class. |
| 10 | 30% | DB | Motor vehicles, tractors, computer hardware (general rule), vans, pickups. |
| 10.1 | 30% | DB | Passenger vehicles costing more than the prescribed limit ($37,000 in 2026). Each vehicle is its own class. |
| 12 | 100% | DB | Small tools under $500, dies, jigs, moulds, some software, kitchen utensils under $500. |
| 13 | SL | SL | Leasehold improvements. Deducted straight-line over the remaining lease term (min 5 years, max 40 years). |
| 14 | SL | SL | Patents, franchises, licences, and concessions with a limited legal life — straight-line over legal life. |
| 14.1 | 5% | DB | Goodwill, customer lists, non-compete covenants, and other eligible capital property acquired after 2016. |
| 16 | 40% | DB | Taxis, coin-operated video games, freight trucks over 11,788 kg (gross). |
| 17 | 8% | DB | Roads, parking areas, sidewalks, airplane runways, storage areas made of paved surface or gravel. |
| 29 | 50% SL | SL | Manufacturing and processing machinery and equipment acquired 2018–2027 (accelerated write-off option). |
| 43 | 30% | DB | Manufacturing and processing machinery and equipment not otherwise classified. |
| 43.1 | 30% | DB | Clean energy generation and conservation equipment. |
| 43.2 | 50% | DB | Advanced clean energy and conservation equipment (higher rate than 43.1). |
| 44 | 25% | DB | Patents (if taxpayer elects this class instead of Class 14). |
| 45 | 45% | DB | Computer equipment and systems acquired before March 19, 2007 (rarely encountered now). |
| 46 | 30% | DB | Data network infrastructure equipment and systems software for that equipment. |
| 50 | 55% | DB | General-purpose electronic data processing equipment (computers) acquired after March 18, 2007. |
| 53 | 50% | DB | Manufacturing and processing M&E acquired after 2015 and before 2026 (transitional class). |
| 54 | 30% | DB | Zero-emission vehicles equivalent to Class 10 (non-passenger). Cars, pickups, SUVs powered by ZEV technology. |
| 55 | 40% | DB | Zero-emission vehicles equivalent to Class 16 (taxi, rideshare, or freight). |
| 56 | 30% | DB | Zero-emission automotive equipment and aircraft acquired after March 1, 2020 and before 2028. |
Frequently asked questions
What is CCA?
Capital Cost Allowance is how Canadian tax law lets businesses deduct the cost of long-lived assets over time instead of all at once. When you buy a computer for $2,000, you can't deduct it as an expense the same way you'd deduct a $20 pen. Instead, you add it to the appropriate class and claim CCA each year until the balance is fully deducted.
What is the half-year rule?
In the year you acquire an asset, CRA assumes you only owned it for half the year regardless of when you actually bought it. So if Class 8 allows 20% CCA, your first-year maximum is 10%. The full 20% applies from year two onward. This rule exists to prevent year-end asset purchases solely for tax deductions.
What is the Accelerated Investment Incentive?
For assets acquired after November 20, 2018 and before 2028, the AII replaces the half-year rule with a more generous first-year deduction. Instead of getting half the normal rate, you get 1.5 times it. For a Class 8 asset at 20%, that's a first-year CCA of 30% instead of 10%. The incentive phases out after 2027.
Can I take less than the maximum CCA?
Yes. CCA is entirely discretionary — you can claim any amount from $0 to the maximum in any given year. If you have little or no income, it often makes sense to skip CCA and carry the deduction forward to a higher-income year when it saves more tax.
What happens when I sell an asset?
When you sell an asset, the proceeds reduce the class balance. If proceeds exceed the balance (a negative balance), you have a recaptured depreciation — fully taxable income. If the class is emptied but there's still a balance remaining, that's a terminal loss — fully deductible.
Source: CRA Guide T4002 — Business and Professional Income. Rates current for 2026.