What are the CCA rates by class, and what can my client claim in the first year in 2026?
For 2026, the main CCA classes are class 1 buildings at 4%, class 8 equipment at 20%, classes 10 and 10.1 vehicles at 30%, class 50 computers at 55% and class 12 small tools at 100%. Property acquired after 2024 and available for use before 2030 generally gets 1.5 times the rate in year one, so class 10.1 gives 45%.
What rate does each CCA class use in 2026?
The rates below are the declining balance rates in Regulation 1100(1)(a), applied to the undepreciated capital cost (UCC) at year end laws-lois.justice.gc.ca. The descriptions follow the CRA's class list
canada.ca. The last column is the first year rate for property acquired after 2024 and available for use in 2026, which is what most 2026 additions get.
| Class | What goes in it | Rate | First year, half year rule | First year, acquired after 2024 |
|---|---|---|---|---|
| 1 | Most buildings acquired after 1987, plus wiring, plumbing and elevators (not land) | 4% | 2% | 6% |
| 6 | Certain frame, log, stucco or metal buildings, some fences and greenhouses | 10% | 5% | 15% |
| 8 | Furniture, appliances, machinery, tools of $500 or more, anything not in another class | 20% | 10% | 30% |
| 10 | Motor vehicles, passenger vehicles at or under the cost limit | 30% | 15% | 45% |
| 10.1 | Each passenger vehicle over the cost limit, one class per vehicle | 30% | 15% | 45% |
| 12 | Tools, kitchen utensils, medical and dental instruments under $500 | 100% | 100% for most items | 100% |
| 13 | Leasehold interests | Varies with the lease | Half the Schedule III amount | Up to 1.5 times the normal amount |
| 14.1 | Goodwill and other intangibles acquired after 2016 | 5% | 2.5% | 7.5% |
| 17 | Roads, parking lots, sidewalks, storage areas and similar surfaces | 8% | 4% | 12% |
| 43 | Manufacturing and processing machinery not in class 29 or 53 | 30% | 15% | 45%, or 100% for equipment that would have been class 53 |
| 44 | Patents and patent licences acquired after April 26, 1993 | 25% | 12.5% | 100% if available before 2027 |
| 46 | Data network infrastructure equipment and systems software | 30% | 15% | 100% if available before 2027 |
| 50 | General purpose computers and systems software acquired after March 18, 2007 | 55% | 27.5% | 100% if available before 2027 |
| 53 | Manufacturing and processing machinery acquired after 2015 and before 2026 | 50% | 25% | 100% for 2025 acquisitions |
| 54 | Zero emission vehicles that would otherwise be class 10 or 10.1 | 30% | Not applied | 100% if available before 2030 |
| 55 | Zero emission vehicles that would otherwise be class 16 | 40% | Not applied | 100% if available before 2030 |
| 56 | Zero emission equipment other than motor vehicles (aircraft, boats, locomotives) | 30% | Not applied | 100% if available before 2030 |
The CRA lists classes 13, 14, 23, 24, 27, 34 and 52, most class 12 property and zero emission vehicles as outside the half year rule canada.ca. Classes 10.1 and 54 carry dollar ceilings on the cost you can add. For 2026 the class 10.1 ceiling is $39,000 before tax and class 54 stays at $61,000; the details are on the class 10.1 limit page.
Why property acquired after 2024 gets 1.5 times the rate in year one
Regulation 1104(4.01) defines reaccelerated investment incentive property as property acquired after 2024 that becomes available for use before 2034, other than classes 54 to 56 laws-lois.justice.gc.ca. For that property, Regulation 1100(2) adds half the net addition to the UCC instead of taking half off, as long as it becomes available for use before 2030. The first claim becomes 1.5 times the rate: 30% on class 8, 45% on classes 10 and 10.1, 6% on class 1
laws-lois.justice.gc.ca.
Some classes get bigger factors that bring the first claim to 100%. Regulation 1100(2) uses 2 1/3 for classes 43.1, 54 and 56 and for class 43 property acquired after 2025 that would have been class 53 in 2025, all for property available before 2030. Class 55 uses 1 1/2, class 53 uses 1, and classes 44, 46 and 50 use 3, 2 1/3 and 9/11 for property available before 2027 laws-lois.justice.gc.ca. Multiply each rate by one plus its factor and every one of them lands on 100%.
The CRA's accelerated investment incentive page, dated July 2025, still describes only the old version for property acquired before 2025, with its phase out over 2024 to 2027 canada.ca. The Regulations, current to September 21, 2026, carry the reinstated rules. The mechanics and the straddle year rules are on the accelerated investment incentive page. The $1.5 million CCPC immediate expensing rule only reached property available for use before 2024, and Finance's September 15, 2026 draft to expense most new property in full isn't law yet; see immediate expensing.
Three 2026 purchases claim $21,400 in year one, not $7,050
Your client buys $50,000 of shop equipment (class 8), $6,000 of laptops and a server (class 50) and a $400 drill (class 12). All three are acquired and available for use in 2026, the client has a December year end and doesn't claim immediate expensing.
| Class | Cost | First year claim, 2026 rules | Same purchase under the half year rule |
|---|---|---|---|
| 8 | $50,000 | 20% x 1.5 = 30%: $15,000 | 10%: $5,000 |
| 50 | $6,000 | 55% x (1 + 9/11) = 100%: $6,000 | 27.5%: $1,650 |
| 12 | $400 | 100%: $400 | 100%: $400 |
| Total | $56,400 | $21,400 | $7,050 |
In 2027 the class 8 equipment goes back to the plain 20% on the $35,000 left: a $7,000 claim. Class 50 has nothing left, so any 2027 laptop starts a fresh balance in the class.
The bigger first claim moves deductions forward; it doesn't add to them. The CRA says the incentive doesn't change the total your client can deduct over the life of a property canada.ca. If the shop equipment were sold for more than its UCC, the excess would come back as recapture, covered on the recapture and terminal loss page.
Which class does it go in? The lines that trip people up
$500 splits class 12 from class 8. Small tools, instruments and kitchen utensils under $500 acquired after May 1, 2006 go in class 12 at 100%; at $500 or more they go in class 8 canada.ca. Dies, jigs, patterns and non systems software in class 12 stay under the half year rule
canada.ca.
Class 8 items of $1,000 or more can sit in their own class. Your client elects with a letter attached to the return for the year of purchase. The rate stays 20%, and whatever is left after five years moves back into the general class 8 canada.ca.
Class 53 closed at the end of 2025. Manufacturing and processing machinery acquired after 2015 and before 2026 is class 53 at 50% canada.ca. The same equipment acquired in 2026 goes to class 43 at 30%, with the 100% first year factor if it becomes available for use before 2030
laws-lois.justice.gc.ca.
Class 1 extras need a separate class. A nonresidential building acquired after March 18, 2007 gets an extra 6% (10% in total) if at least 90% of the floor space is used for manufacturing or processing in Canada, or an extra 2% (6% in total) for other nonresidential use. Your client has to put the building in a separate class with a letter, or the rate stays 4% canada.ca. A further 6% for new purpose built rental housing now sits in Regulation 1100(1)(a.4)
laws-lois.justice.gc.ca; the CRA still labels it proposed and ties it to construction starting after April 15, 2024 and before 2031, with the building available for use before 2036
canada.ca.
Land never goes in a class. Only the building is depreciable canada.ca, and a rental property acquired after 1971 with a capital cost of $50,000 or more has to be put in its own class
canada.ca. The rental side is on the rental property CCA page.
Pre 2017 goodwill still runs at 7%. Class 14.1 property acquired before January 1, 2017 uses 7% for tax years ending before 2027, under transitional rules; everything acquired after 2016 uses 5% canada.ca.
Why classes 13 and 14 have no fixed rate
Class 13 has no fixed rate. The CRA says the maximum depends on the type of leasehold interest and the terms of the lease, and its capital cost includes what a tenant spends on capital improvements to the leased property and what it pays to get or extend the lease, but not lease cancellation payments or prepaid rent canada.ca. Regulation 1100(1)(b) sends the calculation to Schedule III, and for reaccelerated property the cap rises to 150% of the Schedule III amount
laws-lois.justice.gc.ca. Class 13 is outside the general half year rule
canada.ca, but property that isn't accelerated gets only 50% of the Schedule III amount in its first year under Regulation 1100(1)(b)
laws-lois.justice.gc.ca.
Class 14 covers patents, franchises, concessions and licences for a limited period. Under Regulation 1100(1)(c) the claim is the lesser of the capital cost spread over the remaining life of the property and the UCC at year end laws-lois.justice.gc.ca. A licence with no end date belongs in class 14.1 at 5% instead
canada.ca.
Roads and parking lots are their own trap: Schedule II puts them in class 17 at 8% rather than with the building in class 1 laws-lois.justice.gc.ca.
Sources
Does the half year rule apply to anything bought in 2026?
Mostly no. Property acquired after 2024 that becomes available for use before 2030 gets half the net addition added to the UCC instead of taken off, so the first claim is 1.5 times the rate laws-lois.justice.gc.ca. Property acquired before 2025 follows the older incentive and its phase out
canada.ca.
Where do the 45% for a car and the class 10.1 ceiling come from?
The 45% is 1.5 times the 30% class 10.1 rate under Regulation 1100(2) laws-lois.justice.gc.ca. It applies to a ceiling of $39,000 plus tax for cars acquired in 2026, worked through on the class 10.1 limit page.
Is a laptop class 50 or class 12?
Class 50. General purpose computer hardware and systems software acquired after March 18, 2007 is class 50 at 55% canada.ca, and one available for use before 2027 can be written off in full in year one
laws-lois.justice.gc.ca. Application software that isn't systems software is class 12, under the half year rule
canada.ca.
Can a CCPC skip the classes and expense everything?
Not under current law. The $1.5 million CCPC rule covered only property available for use before 2024, and Finance's September 15, 2026 draft to expense most new property isn't law yet; both are on the immediate expensing page. Until it passes, 2026 additions use the class rates and first year factors in the table above.
General information for the tax year shown, not advice for a specific client. Confirm the facts before you file or remit.