CCA Classes Rates Table: The Ones Students Actually Need

CCA Classes Rates Table: The Ones Students Actually Need

Tutorly · Canadian Tax · Cheat Sheet

CCA Classes Rates Table: The Ones Students Actually Need

This CCA classes rates table covers the handful you’ll meet in a Canadian tax or accounting course. The big ones: Class 8 (20%) for furniture and equipment, Class 10 (30%) for vehicles, Class 50 (55%) for computers, and Class 1 (4%) for buildings — all declining-balance except leasehold improvements (Class 13), which are straight-line.

The CCA classes and rates

ClassRateWhat goes in it
14%Most buildings acquired after 1987 (higher rates apply to some non-residential/M&P buildings)
820%Furniture, fixtures, equipment and machinery not in another class — the catch-all
1030%General-purpose vehicles and equipment (and older computer hardware)
10.130%Passenger vehicles costing more than the CRA’s annual limit (about $38,000 + tax for 2025)
12100%Tools, kitchenware and similar items under $500, application software, uniforms
13straight-lineLeasehold improvements — written off over the lease term (not declining balance)
4330%Manufacturing & processing machinery and equipment (general)
5055%Computer hardware and systems software
5350%M&P machinery acquired 2015–2025; property acquired after 2025 generally falls into Class 43 (30%)
The classes most Canadian intro/tax courses test. Rates are declining-balance unless noted. Verify current rules on canada.ca — classes and limits change.

How to use the table

Three steps: (1) identify what the asset is and slot it into the right class; (2) apply that class’s rate to the balance (the UCC) on a declining-balance basis; (3) remember the half-year rule in the year of purchase, or the Accelerated Investment Incentive where it applies. The full mechanics — with a numbered example — are in How to calculate CCA.

Watch the moving pieces. The Class 10.1 vehicle limit changes most years, Class 53 (M&P at 50%) phased out after 2025, and clean-energy and zero-emission-vehicle classes (43.1, 43.2, 54–56) have their own rules. Always confirm the current-year figures before relying on them on an assignment or return.

Frequently asked questions

What are the most common CCA classes and rates?

Class 8 (20%) for furniture and equipment, Class 10 (30%) for vehicles, Class 50 (55%) for computers, Class 1 (4%) for buildings, Class 12 (100%) for small tools and software, and Class 13 (straight-line) for leasehold improvements.

What CCA class are computers?

Most computer hardware and systems software is Class 50 at 55%. Application software is Class 12 at 100%.

What class is a vehicle?

Most vehicles are Class 10 (30%). A passenger vehicle that costs more than the CRA’s annual limit goes into its own Class 10.1, also at 30%.

Are CCA rates declining balance or straight-line?

Almost all classes use declining balance. The main exception is Class 13 (leasehold improvements), written off straight-line over the lease term.

Need to actually apply these?

Book 1-on-1 tutoring on CCA, UCC and recapture using problems from your own tax course.

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