Capital cost allowance (CCA) classes

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Capital cost allowance (CCA) classes

Commonly used CCA classes, their descriptions and rates
Class Rate (%) Description
1 4 Most buildings you bought after 1987 and the cost of certain additions or alterations made after 1987. The rate for eligible non-residential buildings acquired after March 18, 2007, and used in Canada to manufacture and process goods for sale or lease includes an additional allowance of 6% (total 10%). For all other eligible non-residential buildings in this class, the rate includes an additional allowance of 2% (total 6%). To be eligible for the additional allowances, elections have to be filed. For more information, go to Class 1 (4%).
3 5 Most buildings acquired before 1988 (or 1990, under certain conditions). Also include the cost of additions or alterations made after 1987. For more information, go to Class 3 (5%).
6 10 Frame, log, stucco on frame, galvanized iron or corrugated metal buildings that meet certain conditions. Class 6 also includes certain fences and greenhouses. For more information, go to Class 6 (10%).
8 20 Property that you use in your business and that is not included in another class. Also included is data network infrastructure equipment and systems software for that equipment acquired before March 23, 2004. Some buildings used for storage should also be included. For more information, go to Class 8 (20%) and Class 46 (30%).
10 30 General-purpose electronic data-processing equipment (commonly called computer hardware) and systems software for that equipment acquired before March 23, 2004, or after March 22, 2004, and before 2005 if you made an election. Also included are motor vehicles and some passenger vehicles. For more information, go to Class 10 (30%) and Class 10.1 (30%).
10.1 30 A passenger vehicle not included in Class 10. For more information, go to Class 10.1 (30%).
12 100 Property such as tools, medical or dental instruments, and kitchen utensils that cost less than $500 and were acquired after May 1, 2006. For more information, go to Class 12 (100%).
13 Varies Leasehold interest. You can claim CCA on a leasehold interest, but the maximum rate depends on the type of leasehold interest and the terms of the lease.
14 Varies Patents, franchises, concessions or licences for a limited period. Your CCA is the lesser of the total of the capital cost of each property spread out over the life of the property, or the undepreciated capital cost to the taxpayer as of the end of the tax year of property of that class.
14.1 5

Starting January 1, 2017, include in Class 14.1Footnote 1 property that:

  • is goodwill
  • was eligible capital property immediately before January 1, 2017, and is owned at the beginning of that day
  • is acquired after 2016, other than:
    • property that is tangible or corporeal property
    • property that is not acquired for the purpose of gaining or producing income from business
    • property in respect of which any amount is deductible (otherwise than as a result of being included in Class 14.1) in computing the income from the business
    • an interest in a trust
    • an interest in a partnership
    • a share, bond, debenture, mortgage, hypothecary claim, note, bill or other similar property
    • property that is an interest in, or for civil law a right in, or a right to acquire, a property described in any of the above sub-bullets

Examples for farming are milk and eggs quotas.

Examples for business, professional and fishing are franchises, concessions or licences for an unlimited period.

Properties that are included in Class 14.1 and acquired after 2016 will be included in this class at a 100% inclusion rate with a 5% CCA rate on a declining-balance basis and the existing CCA rules will normally apply.

For tax years that end prior to 2027, properties included in Class 14.1 that were acquired before January 1, 2017, will be depreciable at a CCA rate of 7% instead of 5%. Transitional rules will apply.
16 40 Taxis acquired after May 25, 1976, vehicles acquired after November 12, 1981, that you use in a daily car-rental business, coin-operated video games or pinball machines acquired after February 15, 1984, and freight trucks acquired after December 6, 1991, that are rated higher than 11,788 kilograms.
17 8 Roads, parking lots, sidewalks, airplane runways, storage areas or similar surface construction, as well as telephone, telegraph or non-electric data communication switching equipment.
29 Varies Eligible machinery and equipment used in Canada to manufacture and process goods for sale or lease, acquired after March 18, 2007, and before 2016, that would otherwise be included in Class 43.
38 30 Most power-operated movable equipment you bought after 1987 that was use for excavating, moving, placing or compacting earth, rock, concrete or asphalt.Footnote 2
43 30 Eligible machinery and equipment used in Canada to manufacture and process goods for sale or lease that are not included in Class 29 or 53. For more information, go to Class 43 (30%).
43.1 30 Certain clean energy generation and energy conservation equipment not included in Class 43.2, including electric vehicle charging stations set up to supply more than 10 kilowatts but less than 90 kilowatts of continuous power. For more information, go to Class 43.1 (30%) and Class 43.2 (50%).
43.2 50 Certain clean energy generation and energy conservation equipment acquired after February 22, 2005, and before 2025. For more information, go to Class 43.1 (30%) and Class 43.2 (50%).
44 25 Patents or licences to use patents for a limited or unlimited period that were acquired after April 26, 1993. However, you can elect not to include such property in Class 44 by attaching a letter to the return for the year you acquired the property. In the letter, indicate the property you don't want to include in Class 44. For more information, go to Class 44 (25%).
45 45 General-purpose electronic data-processing equipment (computer hardware) and systems software for that equipment, including ancillary data-processing equipment, if you acquired them after March 22, 2004, and before March 19, 2007.
46 30 Data network infrastructure equipment and systems software for that equipment acquired after March 22, 2004. If acquired before March 23, 2004, include them in Class 8 (20%).
50 55 General-purpose electronic data-processing equipment (computer hardware) and systems software for that equipment, including ancillary data-processing equipment, acquired after March 18, 2007, and not included in Class 29 or 52. For more information, go to Class 50 (55%).
52 100 General-purpose electronic data-processing equipment (computer hardware) and systems software for that equipment, including ancillary data-processing equipment, if you acquired them after January 27, 2009, and before February 2011.
53 50 Machinery and equipment acquired after 2015 and before 2026 that is used in Canada mainly to manufacture and process goods for sale or lease.
54 30 Zero-emission vehicles acquired after March 18, 2019, that would otherwise be included in Class 10 or 10.1. These vehicles may be eligible for the first-year enhanced CCA deduction with a phase-out period. There is a limit on the capital cost for each zero-emission passenger vehicle ($55,000 if acquired before 2022, $59,000 if acquired in 2022 and $61,000 if acquired after 2022). For more information, go to Class 54 (30%) and Class 55 (40%).
55 40 Zero-emission vehicles acquired after March 18, 2019, that would otherwise be included in Class 16. These vehicles may be eligible for the first-year enhanced CCA deduction with a phase-out period. For more information, go to Class 54 (30%) and Class 55 (40%).
56 30 Zero-emission automotive equipment and vehicles (other than motor vehicles) that don't currently benefit from the accelerated rate provided by Classes 54 and 55. They must be acquired after March 1, 2020, and become available for use before 2028. They may be eligible for the first-year enhanced CCA deduction with a phase-out period. For more information, go to Class 56 (30 %).
57 8 Equipment that is used solely to capture, transport or store carbon dioxide (CO2) as part of a carbon capture, utilization and storage project.Footnote 3
58 20 Equipment that is used solely to use carbon dioxide (CO2) in industrial production.Footnote 3
59 100 Intangible property acquired after 2021 for determining the existence, location, extent or quality of a geological formation to permanently store captured carbon in Canada, including property acquired as a result of undertaking environmental studies or community consultations.Footnote 3
60 30 Intangible property acquired after 2021 for drilling, converting or completing a well in Canada to permanently store captured carbon.Footnote 3

Footnotes

Footnote 1

Property in Class 14.1 is excluded from the definition of capital property for GST/HST purposes.

Return to footnote1 Referrer

Footnote 2

You can choose to keep in a separate class any assets, including an outdoor advertising sign, that you would usually include in Class 38. To make this choice, attach a list of the assets you are including in a separate class to your income tax and benefit return for the year you bought these assets.

Return to footnote2 Referrer

Footnote 3

This new class is included in Bill C-59, which has not received royal assent yet.

Return to footnote3 Referrer

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Date modified:
2024-04-23