To calculate capital cost allowance (CCA) on your depreciable properties, use the form that applies to your business:

• Form T2125, Statement of Business or Professional Activities
• Form T2042, Statement of Farming Activities
• Form T2121, Statement of Fishing Activities

Capital cost allowance classes

On this page, we present the more common classes of depreciable properties and their rates. We also list most of the classes and rates at Capital cost allowance (CCA) classes.

• Class 1 (4%)
• Class 3 (5%)
• Class 6 (10%)
• Class 8 (20%)
• Class 10 (30%)
• Class 10.1 (30%)
• Class 12 (100%)
• Class 14
• Class 14.1 (5%)
• Class 16 (40%)
• Class 43 (30%)
• Class 43.1 (30%) and Class 43.2 (50%)
• Class 44 (25%)
• Class 45 (45%)
• Class 46 (30%)
• Class 50 (55%)
• Class 52 (100%)
• Class 53 (50%)
• Class 54 (30%) and Class 55 (40%)
• Class 56 (30%)
• Special rates for certain fishing boats

Class 1 (4%)

A building may belong to Class 1, 3, or 6, depending on what the building is made of and the date you acquired it. You also include in these classes the parts that make up the building, such as:

• electrical wiring
• lighting fixtures
• plumbing
• sprinkler systems
• heating equipment
• air-conditioning equipment (other than window units)
• elevators
• escalators

Class 1 includes most buildings acquired after 1987, unless they specifically belong in another class. Class 1 also includes the cost of certain additions or alterations you made to a Class 1 building or certain buildings of another class after 1987.

The CCA rate for eligible non-residential buildings acquired by a taxpayer after March 18, 2007, and used in Canada to manufacture or process goods for sale or lease includes an additional allowance of 6% for a total rate of 10%. The CCA rate for other eligible non-residential buildings includes an additional allowance of 2% for a total rate of 6%.

To be eligible for one of the additional allowances, you must elect to put a building in a separate class. To make the election, attach a letter to your return for the tax year in which you acquired the building. If you do not file an election to put it in a separate class, the 4% rate will apply.

The additional allowance applies to buildings acquired after March 18, 2007, (including a new building, if any part of it is acquired after March 18, 2007, when the building was under construction on March 19, 2007) that have not been used or acquired for use before March 19, 2007.

To be eligible for the 6% additional allowance, at least 90% of a building (measured by square footage) must be used in Canada for the designated purpose at the end of the tax year. Manufacturing and processing buildings that do not meet the 90% use test will be eligible for the additional 2% allowance if at least 90% of the building is used in Canada for non-residential purposes at the end of the tax year.

Class 3 (5%)

Most buildings acquired before 1988 are included in Class 3 or Class 6.

If you acquired a building before 1990 that does not fall into Class 6, you can include it in Class 3 with a CCA rate of 5% if one of the following applies:

• you acquired the building under the terms of a written agreement entered into before June 18, 1987
• the building was under construction by you or for you on June 18, 1987

Include in Class 3 the cost of any additions or alterations made after 1987 to a Class 3 building that does not exceed the lesser of the following two amounts:

• $500,000
• 25% of the building's capital cost (including the cost of additions or alterations to the building included in Class 3, Class 6, or Class 20 before 1988)

Any amount that exceeds the lesser amount above is included in Class 1.

Class 6 (10%)

Include a building in Class 6 with a CCA rate of 10% if it is made of frame, log, stucco on frame, galvanized iron, or corrugated metal. In addition, one of the following conditions has to apply:

• you acquired the building before 1979
• the building is used to gain or produce income from farming or fishing
• the building has no footings or other base supports below ground level

If any of the above conditions apply, you also add the full cost of all additions and alterations to the building to Class 6.

If none of the above conditions apply, include the building in Class 6 if one of the following conditions applies:

• you entered into a written agreement before 1979 to acquire the building, and the footings or other base supports of the building were started before 1979
• you started construction of the building before 1979 (or it was started under the terms of a written agreement you entered into before 1979), and the footings or other base supports of the building were started before 1979

Also include in Class 6 certain greenhouses and fences.

For additions or alterations to such a building:

• add to Class 6 the first $100,000 of additions or alterations made after 1978
• add to Class 3:
  • the part of the cost of all additions or alterations over $100,000 made after 1978 and before 1988
  • the part of the cost of additions or alterations over $100,000 made after 1987, but only up to $500,000 or 25% of the cost of the building, whichever is less
• add to Class 1 any additions or alterations over these limits

Class 8 (20%)

Class 8 with a CCA rate of 20% includes certain property that is not included in another class. Examples are furniture, appliances, and tools costing $500 or more per tool, some fixtures, machinery, outdoor advertising signs, refrigeration equipment, and other equipment you use in the business.

Photocopiers and electronic communications equipment, such as fax machines and electronic telephone equipment, are also included in Class 8.

Include data network infrastructure equipment and systems software for that equipment acquired before March 23, 2004, in Class 8. If acquired after March 22, 2004, include it in Class 46.

Include buildings you use to store fresh fruit or vegetables at a controlled temperature, by or for the persons by whom they were grown, in Class 8 instead of Class 1, Class 3, or Class 6. Also include in Class 8 any buildings you use to store silage.

Class 10 (30%)

Class 10 with a CCA rate of 30% includes general-purpose electronic data processing equipment (commonly called computer hardware) and systems software for that equipment, including ancillary data processing equipment, if you acquired them either:

• before March 23, 2004
• after March 22, 2004, and before 2005, and you made an election

Class 10 also includes motor vehicles, as well as some passenger vehicles.

Include passenger vehicles in Class 10 unless they meet the Class 10.1 conditions.

Eligible zero-emission vehicles are included in Class 54.

We define motor vehicle, passenger vehicle, and zero-emission vehicles in Type of vehicle.

Class 10.1 (30%)

Your passenger vehicle can belong in either Class 10 or Class 10.1. To determine the class your passenger vehicle belongs in, you have to use the cost of the vehicle before you add the GST/HST, or the PST.

Include your passenger vehicle in Class 10.1 if you bought it in 2023 and it cost more than $36,000. List each Class 10.1 vehicle separately.

The capital cost limits of a Class 10.1 passenger vehicle are as follows: $30,000 for vehicles acquired before 2022, $34,000 for vehicles acquired in 2022, and $36,000 for vehicles acquired in 2023, plus the GST/HST, or PST.

Under the immediate expensing rules, if you dispose of a passenger vehicle acquired after April 18, 2021, to a person or partnership with whom you deal at arm's length, and its cost exceeds the prescribed amount ($30,000 for vehicles acquired after 2000 and before January 1, 2022, $34,000 for vehicles acquired after December 31, 2021, and before January 1, 2023, or $36,000 for vehicles acquired after December 31, 2022), the proceeds of disposition will be adjusted based on a factor equal to the prescribed amount as a proportion of the actual cost of the vehicle.

Eligible zero-emission vehicles are included in Class 54.

Class 12 (100%)

Class 12 includes property such as tools, medical or dental instruments, and kitchen utensils that cost less than $500 and were acquired on or after May 2, 2006.

Class 12 includes china, cutlery, linen and uniforms. It also includes video-cassettes, video laser discs and digital video disks that you rent and do not expect to rent to any one person for more than 7 days in a 30-day period.

Most small tools in Class 12 are not subject to the half-year rule. They are fully deductible in the year of purchase. If the tool costs $500 or more, include it in Class 8 with a CCA rate of 20%.

Class 12 tools that are subject to the half-year rule include dies, jigs, patterns, moulds and lasts, as well as the cutting or shaping part of a machine.

Include in Class 12 with a CCA rate of 100% computer software that is not systems software. Software in Class 12 is subject to the half-year rule.

Class 12 specifically excludes electronic communication devices and electronic data processing equipment.

Class 14

Class 14 includes patents, franchises, concessions, or licences for a limited period. Your CCA is whichever of the following amounts is less:

• the total of the capital cost of each property spread out over the life of the property
• the UCC to the taxpayer as of the end of the tax year of property of that class

Class 14.1 (5%)

Starting January 1, 2017, include in Class 14.1 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 egg quotas.

Examples for business, professions 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.

Class 16 (40%)

Class 16 includes:

• taxis acquired after May 25, 1976
• vehicles acquired after November 12, 1981, which you use in a daily car rental business
• coin-operated video games or pinball machines acquired after February 15, 1984
• freight trucks acquired after December 6, 1991, that are rated above 11,788 kg

Eligible zero-emission vehicles are included in Class 55.

Class 43 (30%)

Include in Class 43 with a CCA rate of 30% eligible machinery and equipment used in Canada primarily to manufacture and process goods for sale or lease that are not included in Class 29 or 53.

You can list this property in a separate class if you file an election by submitting a letter when you file your tax return for the year in which you acquired the property. For information on separate class elections, see Class 8 (20%).

Class 43.1 (30%) and Class 43.2 (50%)

Include in Class 43.1 with a CCA rate of 30% electrical vehicle charging stations (EVCSs) set up to supply more than 10 kilowatts but less than 90 kilowatts of continuous power. This is for property acquired for use after March 21, 2016, that has not been used or acquired for use before March 22, 2016.

Class 43.1 also includes geothermal heat recovery equipment acquired for use after March 21, 2017, that is used primarily for extracting heat for sale. Geothermal equipment may be eligible for accelerated CCA.

Include in Class 43.2 with a CCA rate of 50% EVCSs set up to supply 90 kilowatts and more of continuous power. This is for property acquired for use after March 21, 2016, that has not been used or acquired for use before March 22, 2016.

Class 44 (25%)

Include in Class 44 patents or a licence to use patents for a limited or unlimited period that was 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 do not want to include in Class 44. The property you elect not to include in Class 44 will be included in Class 14 instead, if it has a limited life. If it has an unlimited life, it may qualify as an eligible capital property (before 2017) or as a Class 14.1 property (after 2016).

Class 45 (45%)

Include general-purpose electronic data processing equipment (commonly called computer hardware) and systems software for that equipment, including ancillary data processing equipment, in Class 45 with a CCA rate of 45% if you acquired them after March 22, 2004, and before March 19, 2007.

Class 46 (30%)

Include in Class 46 with a CCA rate of 30% data network infrastructure equipment and systems software for that equipment if they were acquired after March 22, 2004. If they were acquired before March 23, 2004, include them in Class 8.

Class 50 (55%)

Include in Class 50 with a CCA rate of 55% property acquired after March 18, 2007, that is general-purpose electronic data processing equipment and systems software for that equipment, including ancillary data processing equipment.

Do not include property that is included in Class 29 or Class 52 or that is mainly or is used mainly as:

1. electronic process control or monitor equipment
2. electronic communications control equipment
3. systems software for equipment referred to in 1. or 2.
4. data handling equipment (other than data handling equipment that is ancillary to general-purpose electronic data processing equipment)

Class 52 (100%)

Include in Class 52 with a CCA rate of 100% (with no half-year rule) general-purpose electronic data processing equipment (commonly called computer hardware) and systems software for that equipment, including ancillary data processing equipment, if they were acquired after January 27, 2009, and before February 2011.

Do not include property that is mainly or is used mainly as:

1. electronic process control or monitor equipment
2. electronic communications control equipment
3. systems software for equipment referred to in 1. or 2. or
4. data handling equipment (other than equipment that is ancillary to general-purpose electronic data processing equipment)

To qualify for this rate, the asset must also meet the following conditions:

• be located in Canada
• not have been used, or acquired for use, for any purpose before it was acquired by the taxpayer and
• be acquired by the taxpayer either:
  • for use in a business carried on by the taxpayer in Canada or to earn income from property located in Canada
  • for lease by the taxpayer to a lessee for the lessee to use in a business the lessee carried on in Canada or to earn income from property located in Canada

Class 53 (50%)

Include in Class 53 with a CCA rate of 50% eligible machinery and equipment that is acquired after 2015 and before 2026 (that would generally otherwise be included in Class 29) to be used in Canada primarily in the manufacturing or processing of goods for sale or lease.

Class 54 (30%) and Class 55 (40%)

There are two CCA classes for zero-emission vehicles acquired after March 18, 2019. Class 54 was created for zero-emission vehicles that would otherwise be included in Class 10 or 10.1, with the same CCA rate of 30%. Class 55 was created for zero-emission vehicles otherwise included in Class 16, with the same CCA rate of 40%. The CCA still applies on a declining-balance basis.

An enhanced first-year CCA deduction with the following phase-out period is available:

• 100% after March 18, 2019, and before 2024
• 75% after 2023 and before 2026
• 55% after 2025 and before 2028

For the enhanced first-year allowance, the following steps should be taken before calculating the CCA:

• increase the net capital cost addition to the new class for property that becomes available for use before 2028 as follows:
  • For Class 54, increase the capital cost addition by an amount equal to:
    • 2 1/3 times the net addition to the class for property that becomes available for use before 2024
    • 1 1/2 times the net addition to the class for property that becomes available for use in 2024 or 2025
    • 5/6 times the net addition to the class for property that becomes available for use after 2025 and before 2028
  • For Class 55, increase the capital cost addition by an amount equal to:
    • 1 1/2 times the net addition to the class for property that becomes available for use before 2024
    • 7/8 times the net addition to the class for property that becomes available for use in 2024 or 2025
    • 3/8 times the net addition to the class for property that becomes available for use after 2025 and before 2028
• suspend the existing CCA half-year rule

Multiply the result by the prescribed CCA rate of 30% for Class 54 and 40% for Class 55.

The CCA will be applicable on any remaining balance in these classes using the specific rate for the class.

A taxpayer may elect to not include in Class 54 or 55 a vehicle that would otherwise be a zero-emission vehicle or a zero-emission passenger vehicle. When such an election is filed, the vehicle will no longer be considered to be a zero-emission vehicle or a zero-emission passenger vehicle. As a result, the vehicle will be included in its usual CCA Class 10, 10.1, or 16, as the case may be. Such vehicles will not qualify for the enhanced first-year CCA under the zero-emission vehicle rules. However those vehicles, that will be included in Class 10, 10.1, or 16, may be eligible for the immediate expensing incentive or enhanced CCA under the accelerated investment incentive property (AIIP) rules.

The election must be filed with the minister of national revenue in your Income Tax and Benefit Return for the tax year in which the vehicle is acquired. There is no provision for late-filing or amended elections.

Class 54 (30%)

Include in Class 54 zero-emission vehicles that are not included in Class 16 or 55 and would normally be included in Class 10 or 10.1.

There is a limit of $61,000 (plus federal and provincial sales taxes) on the capital cost for each zero-emission passenger vehicle in Class 54. Class 54 may include both zero-emission passenger vehicles that do and do not exceed the prescribed threshold. However, unlike Class 10.1, Class 54 does not establish a separate class for each vehicle whose cost exceeds the threshold.

If a zero-emission passenger vehicle is disposed of to a person or partnership with whom you deal at arm's length, and its cost exceeds the prescribed amount ($55,000 for vehicles acquired after March 18, 2019, and before January 1, 2022; $59,000 for vehicles acquired after December 31, 2021, and before January 1, 2023; or $61,000 for vehicles acquired after December 31, 2022), the proceeds of disposition will be adjusted based on a factor equal to the prescribed amount as a proportion of the actual cost of the vehicle. For dispositions made after July 29, 2019, the actual cost of the vehicle will also be adjusted for the payment or repayment of government assistance.

Class 55 (40%)

Include in Class 55 zero-emission vehicles that would normally be included in Class 16.

Class 56 (30%)

Include in Class 56 zero-emission automotive equipment and vehicles (other than motor vehicles) that do not currently benefit from the accelerated rate provided by Classes 54 and 55. To be included in this class, such property needs to be acquired after March 1, 2020, and become available for use before 2028.

The enhanced first-year CCA deduction for this class applies only for the tax year in which the equipment or vehicle first becomes available for use. The deduction is subject to the following phase-out period:

• 100% on or after March 2, 2020, and before 2024
• 75% after 2023 and before 2026
• 55% after 2025 and before 2028

To be eligible for the enhanced first-year allowance, a vehicle or equipment must be automotive (that is, self-propelled) and fully electric or powered by hydrogen. Vehicles or equipment that are powered partially by electricity or hydrogen (which includes hybrid vehicles and vehicles that require human or animal power for propulsion) are not eligible.

Class 56 captures automotive equipment that is not designed for use on highways or streets such as zero-emission aircraft, watercraft, trolley buses and railway locomotives. Additions or alterations may qualify if they convert automotive equipment (other than a motor vehicle) into a zero-emission property.

The CCA is deductible on any remaining balance in the class on a declining-balance basis, at the CCA rate of 30%.

You may elect to not include the vehicle or equipment in Class 56. As a result, the property is then included in the class for which it would otherwise be eligible.

Class 56 excludes property in respect of which CCA or a terminal loss has previously been claimed by another person or partnership where the equipment was acquired by the taxpayer on a tax-deferred "rollover" basis or it was previously owned or acquired by the taxpayer or a non-arm's length person or partnership.

Special rates for certain fishing boats

In most cases, a fishing boat belongs to Class 7. Therefore, you can claim CCA at a maximum rate of 15%. However, there are some exceptions to this rule.

A fishing boat, or the cost to convert it, is eligible for a special rate of CCA as follows:

• If you bought the boat between November 13, 1981, and December 31, 1982, you can claim CCA at a yearly rate of 33 1/3%. You can do this only in certain cases
• If you bought the boat after December 31, 1982, you can claim CCA at a rate of 16 2/3% for the year you bought the boat. You can claim 33 1/3% for the years after you bought the boat

You can claim this special rate on the following:

• a boat that was built and registered in Canada and was not used for any purpose before you bought it
• the cost to convert or alter a boat in Canada
• a boat, or the cost to convert it, established as a separate prescribed class under the now repealed Canadian Vessel Construction Assistance Act

An enhanced first-year CCA deduction is available for fishing boats in Class 7 that are AIIP. The first-year CCA deduction is calculated by both:

• applying the prescribed CCA rate of 15% to 0.5 times the net addition to the class for property that becomes available for use before 2024
• suspending the existing CCA half-year rule

For boats that are eligible for the special rate of 33 1/3% (16 2/3% in the year of acquisition) that are AIIP, the enhanced first-year CCA rate is:

• 50% for boats acquired before 2024
• 33 1/3% for boats acquired after 2023 and before 2028

Forms and publications

• Guide RC4022, General Information for GST/HST Registrants
• Guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income
• Income Tax Folio S3-F4-C1, General Discussion of Capital Cost Allowance
• Interpretation Bulletin IT-79, Capital Cost Allowance – Buildings or Other Structures

Related links

• Accelerated investment incentive
• Current or capital expenses
• Rental – classes of depreciable properties