CCA Class 10 and Class 10.1 Vehicle Calculator
Tells you whether a passenger vehicle belongs in CCA Class 10 or Class 10.1 and builds the first three years of capital cost allowance. A vehicle costing more than $39,000 before tax in 2026 ($38,000 in 2025) goes in Class 10.1 and its capital cost is capped at that limit plus sales tax. Both classes use a 30% declining-balance rate. The 2027 limit has not been announced.
CCA Class 10 and Class 10.1 are the capital cost allowance classes for motor vehicles in Canada, both with a 30% declining-balance rate. A passenger vehicle goes in Class 10 unless it meets the Class 10.1 condition: it cost more than the prescribed limit before tax. In Class 10.1 the capital cost you can depreciate is capped at that limit plus sales tax.
CCA Class 10 vs Class 10.1: the Prescribed Limits
| Vehicle acquired | Class 10.1 if cost before tax is over | Maximum capital cost |
|---|---|---|
| Before 2022 | $30,000 | $30,000 plus GST/HST or PST |
| 2022 | $34,000 | $34,000 plus GST/HST or PST |
| 2023 | $36,000 | $36,000 plus GST/HST or PST |
| 2024 | $37,000 | $37,000 plus GST/HST or PST |
| 2025 | $38,000 | $38,000 plus GST/HST or PST |
| 2026 | $39,000 | $39,000 plus GST/HST or PST |
The 2026 ceiling applies to new and used vehicles acquired on or after January 1, 2026. Zero-emission passenger vehicles belong to Class 54, which has its own $61,000 limit and is not covered here.
Worked Example: $65,000 Vehicle Bought in 2026
The vehicle costs more than $39,000, so it is Class 10.1. With 13% HST the capital cost is $39,000 x 1.13 = $44,070. Under the reinstated Accelerated Investment Incentive the first-year allowance is 45%, or $19,831.50, leaving undepreciated capital cost (UCC) of $24,238.50. Year 2 is 30% of that, $7,271.55, and year 3 is 30% of the remaining $16,966.95, about $5,090. The other $26,000 of the purchase price, plus its tax, is never depreciated.
First-Year Rule: 45% or 15%
Normally the half-year rule halves the first-year claim, so a 30% class gives 15% in the year of purchase. Bill C-15, which received Royal Assent on 26 March 2026, reinstated the Accelerated Investment Incentive for qualifying property acquired on or after 1 January 2025 that becomes available for use before 2030: the first-year deduction is three times the normal first-year amount for property that is normally subject to the half-year rule, which is 45% for these classes. The enhanced allowance is phased out for property available for use after 2029 and ends after 2033. Choose "Half-year rule only" if the vehicle does not qualify.
What the 2027 in This Page's Address Means
The Department of Finance announces the automobile deduction limits for each year around the turn of the year. The 2027 limit has not been announced, so this page uses the 2026 and 2025 limits. The calculator treats one vehicle on its own.
Source and Disclaimer
General information, not tax advice. Leasing limits, interest limits and the rules on selling a Class 10.1 vehicle are not covered.
Sources: Canada Revenue Agency — Classes of depreciable property; Department of Finance Canada — 2026 automobile deduction limits; EY Tax News, 30 March 2026 — Bill C-15 receives Royal Assent. Last updated: October 2026.