CCA Class 10.1 Vehicle 2027 Depreciation Calculator

Passenger vehicles costing over $38,000 (2026; 2027 projected $40K) go in Class 10.1 (single asset per car). Capital cost capped at threshold. 30% declining balance + Accelerated Investment Incentive (AIIP) 1.5x first year. No half-year rule because AIIP.

Ad Space

Class 10.1 vs Class 10

Class 10: vehicles ≤ $38K cost — pooled. Class 10.1: vehicles > $38K — each car its own pool. Cap protects revenue from luxury car deductions.

AIIP Phase-out

Accelerated Investment Incentive Property: 1.5x first-year CCA. Active for vehicles acquired before 2028. Phasing out 2024-2027.

Disposal Treatment

No recapture or terminal loss on Class 10.1. Half UCC × CCA allowed in year of disposal. Excess proceeds over UCC not recaptured.

Source and Disclaimer

canada.ca CCA classes. Capital cost limit indexed annually. 2027 projection based on 2026 $38K plus inflation.

Source: canada.ca CCA Schedule II. Last updated: May 2026.