Classes of depreciable properties

Note: Line 22900 was line 229 before tax year 2019.

Depreciable properties are usually grouped into classes. To claim CCA, you should know about the following classes.

Class 8

The maximum CCA rate for this class is 20%. Musical instruments are included in Class 8.

Class 10

The maximum CCA rate for this class is 30%.

You include motor vehicles and some passenger vehicles in Class 10. Motor vehicles and passenger vehicles are defined in Type of vehicle you own and Vehicle definitions chart.

Your passenger vehicle can belong to either Class 10 or Class 10.1. You only include a passenger vehicle in Class 10.1 if it meets certain conditions. These conditions are explained in the following section.

Class 10.1

The maximum CCA rate for this class is 30%.

The maximum capital cost of each vehicle that may be included in Class 10.1 is now $34,000 plus GST and provincial sales tax (PST), or HST.

Include your passenger vehicle in Class 10.1 if it meets one of the following conditions:

• You acquired it after August 31, 1989, and before January 1, 1997, and it cost you more than $24,000
• You acquired it in 1997, and it cost you more than $25,000
• You acquired it in 1998 or 1999, and it cost you more than $26,000
• You acquired it in 2000, and it cost you more than $27,000
• You acquired it after December 31, 2000, and it cost you more than $30,000
• You acquired it after December 31, 2021, and it cost you more than $34,000

If your passenger vehicle does not meet any of these conditions, then it belongs in Class 10.

To determine what class your passenger vehicle belongs to, do not include the GST and PST, or HST, when calculating the cost of the vehicle.

The following compares the two CCA classes for vehicles:

Because of the differences between Class 10 and Class 10.1, the capital cost allowance schedule on the back of Form T777, Statement of Employment Expenses, is divided into two separate parts (Part A and Part B).

Use Part A to calculate CCA for both Class 8 and Class 10 property, since the rules for these two classes are similar.

Use Part B to calculate CCA on Class 10.1 property only. List each Class 10.1 vehicle on a separate line. Calculate CCA separately for each vehicle listed.

For a detailed explanation on how to complete Part A or Part B, see How to calculate CCA.

Zero-Emission Vehicles

There are two CCA classes for zero-emission vehicles acquired after March 18, 2019, which become available for use before 2028.

Class 54 motor vehicles and passenger vehicles excluding taxicabs and automobiles used for lease and rent

The CCA rate for this class is 30% but a higher deduction (up to a maximum of 100%) may apply for certain eligible vehicles acquired after March 18, 2019, and before January 1, 2028 (phase out starting in 2024).

The capital costs will be deductible up to a limit of $59,000 plus sales tax for 2022, for zero-emission passenger vehicles. 2019 to 2021, the deductible limit was $55,000. The limit will be reviewed annually and special rules will apply in the year of disposition for such vehicles where the capital costs exceed that limit. See Column 5 – Proceeds of dispositions in the year.

Class 55 for automobiles for lease or rent and taxicabs

The CCA rate for this class is 40%, but a higher deduction (up to a maximum of 100%) may apply for certain eligible vehicles acquired and available for use after March 18, 2019, and before January 1, 2028 (phase out starting in 2024).

To be eligible under Class 54 or Class 55, a zero-emission vehicle needs to meet all the following criteria:

• It is a zero-emission vehicle acquired after March 18, 2019 or a used zero-emission vehicle (ZEV) acquired after March 1, 2020 that became available for use before 2028 and included in Class 54 or 55
• An assistance has not been paid by the Government of Canada under the federal purchasing incentive
• It is a vehicle that was not subject to a prior CCA or terminal loss claim, it cannot have been acquired by a taxpayers on a tax-deferred "rollover" basis nor previously owned or acquired by the taxpayer or a non-arm's length person or partnership
• It is essentially a motor vehicle for use on streets and highways (excluding a trolley bus or vehicle operated exclusively on rails)
• It is a plug-in hybrid with battery capacity of at least 7kWh or is fully one of the following:
  • electric
  • powered by hydrogen

An enhanced first-year CCA 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

The enhanced first year allowance will be calculated by:

1. increasing the net capital cost addition to the new class for property that becomes available for use before 2028, and applying the prescribed CCA rate for the class as described below:

For Class 54, applying the prescribed CCA rate of 30% 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, applying the prescribed CCA rate of 40% 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 

2. suspending the existing CCA half year rule

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

Completing your tax return

Calculate your CCA claim using the back of Form T777, Statement of Employment Expenses and enter the amount on the applicable line on the front of the form.

Enter the amount you can deduct from the Total expenses line (9368) of Form T777 on line 22900 of your return.

Forms and publications

• Form T777, Statement of Employment Expenses