Depreciation Calculator (CCA)
Calculate Capital Cost Allowance for business assets using CRA classes.
Total CCA Claimed
$39,795.75
Over 5 years at 30%
Remaining UCC
$10,204.25
Year 1 CCA
$7,500.00
Half-year rule applied
CCA Schedule
| Year | Opening UCC | CCA | Closing UCC |
|---|---|---|---|
| 1 | $50,000.00 | $7,500.00 | $42,500.00 |
| 2 | $42,500.00 | $12,750.00 | $29,750.00 |
| 3 | $29,750.00 | $8,925.00 | $20,825.00 |
| 4 | $20,825.00 | $6,247.50 | $14,577.50 |
| 5 | $14,577.50 | $4,373.25 | $10,204.25 |
Capital Cost Allowance (CCA) in Canada
Capital Cost Allowance is the Canadian tax system’s method for depreciating business assets. Instead of deducting the full cost of an asset in the year of purchase, CRA requires you to claim a percentage each year based on the asset’s CCA class. The system uses the declining balance method, meaning the deduction is calculated on the remaining undepreciated capital cost (UCC) rather than the original cost. The half-year rule applies in the first year: CCA is calculated on only 50% of the net addition to the class, regardless of when during the year the asset was acquired.
The Accelerated Investment Incentive Property (AIIP) rule, introduced in the 2018 Fall Economic Statement, enhanced first-year CCA for most eligible assets: 3x the normal rate before 2024, stepped down to 2x for property available for use in 2024–2027. Manufacturing/processing equipment (Class 53) and clean energy equipment (Classes 43.1/43.2) get a separate first-year write-off, also phasing down: 100% before 2024, 75% for 2024–2025, and 55% for 2026–2027, before it ends entirely after 2027. Zero-emission vehicles (Class 54) had a full first-year write-off until 2024 and are being phased down on the same schedule. These incentives significantly affect the timing of asset purchases for tax planning purposes.
Common CCA Classes and Rates
| Class | Rate and Examples |
|---|---|
| Class 1 (4%) | Buildings acquired after 1987 |
| Class 8 (20%) | Furniture, equipment, machinery |
| Class 10 (30%) | Vehicles, general-purpose hardware |
| Class 12 (100%) | Tools under $500, software |
| Class 50 (55%) | Computer equipment (post-2005) |
| Class 54 (30%) | Zero-emission vehicles |
CCA is optional—you can claim less than the maximum in any year, which is useful if your income is low and the deduction would be wasted. Unused CCA carries forward in the UCC balance indefinitely. When you sell a depreciable asset, the proceeds reduce the UCC of the class. If the UCC goes negative, the resulting amount is recaptured as income. Proper CCA planning, especially around year-end asset purchases, can meaningfully reduce your business tax burden.
Frequently Asked Questions
What is the half-year rule?
What is the AIIP rule?
Official Data Sources
Related Calculators
People also use
Built and reviewed by Konstantin Iakovlev · Data from CRA, CMHC, Bank of Canada · MethodologyDisclaimer: This calculator provides estimates based on publicly available data from CRA and other government sources. It does not constitute financial advice. Consult a qualified advisor for decisions about your specific situation.