CCA Depreciation Calculator
Estimate Capital Cost Allowance (CCA) — the tax depreciation Canadian businesses claim on capital assets — for 2026. CCA is calculated on a declining-balance basis by asset class, each with its own prescribed rate: for example 20% for most machinery and furniture in Class 8, 30% for vehicles in Class 10, and 55% for computer hardware in Class 50. Most new additions are also subject to the half-year rule, which allows only half the normal rate to be claimed in the year of acquisition. Choose an asset class, enter its opening undepreciated capital cost and any additions, and the calculator returns the CCA claim and the closing undepreciated capital cost (UCC) to carry forward.
Estimate only for the 2026 tax year. Not tax, accounting or financial advice. Talk to RN Canada about your situation.
How it works
The calculator adds entered additions to the opening undepreciated capital cost (UCC) for the chosen class, applies the half-year rule to net additions in the acquisition year (claiming CCA on only half of the addition), multiplies the resulting base by the class's prescribed declining-balance rate, and returns both the CCA claim for the year and the closing UCC carried forward to the next year.
What the result includes
Results show the CCA claim for the year, the closing undepreciated capital cost (UCC) for the class, and the effective rate applied after the half-year rule, so the same figures can be carried into next year's calculation.
Assumptions
Assumes a business with a calendar taxation year claiming the maximum available CCA, standard declining-balance classes subject to the half-year rule (not classes with different rules, such as straight-line Class 13 leasehold improvements), and no dispositions in the year. CCA is optional; claiming less than the maximum is not modelled here. The calculator reports recaptured depreciation when dispositions exceed the class balance, but it does not ask whether a class was fully emptied, so it cannot flag a terminal loss; consult an accountant if the last asset in a class was disposed of with a positive balance remaining.
Frequently asked questions
CCA is the tax deduction Canadian businesses claim instead of accounting depreciation, calculated on the undepreciated capital cost (UCC) of assets grouped into prescribed CRA classes, each with its own maximum annual rate.
In the year an asset is acquired, most CCA classes only allow half of the normal rate to be claimed on the net addition. The calculator applies half the class rate to new additions in the acquisition year by default.
No. CCA is optional each year, and a business can claim less than the maximum, or none at all, to manage taxable income. Any amount not claimed stays in the UCC balance and remains available in future years.
Proceeds of disposition, up to the original cost, reduce the class's UCC. If the class balance goes negative it triggers recaptured depreciation as income; if the class is emptied with a positive balance remaining, it can create a terminal loss.
The CRA assigns capital assets to specific classes by type — for example furniture and most machinery (Class 8), vehicles (Class 10 or 10.1), and computer hardware (Class 50) — each with a fixed prescribed rate. Select the closest matching class in the calculator.
Last reviewed: 2026-08-19. Sources: Canada Revenue Agency — Classes of depreciable property, Canada Revenue Agency — Capital cost allowance (CCA) overview