Calculate Capital Cost Allowance the way the CRA expects it in 2026 — declining-balance class pools, the half-year rule, and the Reaccelerated Investment Incentive from Bill C-15. Or switch tabs to compare daily book depreciation against monthly estimates. No signup required.
Assumes a 12-month fiscal year, the asset is available for use in the year acquired, and no other assets in the class pool. Quebec calculates provincial CCA separately.
| Year | Opening UCC | Maximum CCA | Closing UCC |
|---|
Years two onward claim the full rate against the declining balance. CCA is optional — each year you can claim anything from zero up to the maximum shown.
This calculator is for information, not tax advice. Real claims interact with income, short fiscal years, available-for-use timing, proceeds of disposition, and provincial rules. Confirm your claim with your accountant or the CRA's T2 Schedule 8 and T2125 guidance before filing.
Daily calculation counts the exact number of days between your acquisition date and report end date. Monthly estimation rounds to the nearest full month. The gap is usually small on a single asset — it compounds when you track hundreds.
Three rules decide your first-year claim: the class rate, the half-year rule, and whichever federal incentive applies to your acquisition year. The full story — recapture, rental restrictions, claiming mechanics — is in our Capital Cost Allowance guide.
Each CCA class is a pool with a fixed declining-balance rate. You claim the rate against the undepreciated capital cost (UCC) — what's left after prior claims. In the acquisition year, the half-year rule normally cuts the claim to 50% of the rate.
A $10,000 Class 8 purchase in 2018: $1,000 claimed in year one, then $1,800 against the remaining $9,000 in year two.
Bill C-15 (Royal Assent March 26, 2026) reinstated accelerated first-year CCA. For most classes, property acquired after December 31, 2024 and in use before 2030 gets 1.5× the normal rate in year one — and no half-year rule.
$50,000 of Class 8 equipment bought in 2026: a $15,000 first-year claim instead of $5,000 under the half-year rule.
The CRA doesn't accept the depreciation in your financial statements. At tax time you add book depreciation back and claim CCA instead — on T2 Schedule 8 for corporations, form T2125 for sole proprietors.
That means every business tracks two numbers per asset: CCA for the return, book depreciation for the statements. Most get the book side wrong by rounding it to months.
faManager tracks the book side to the exact day and maintains the asset register both calculations depend on.
The classes small and mid-sized Canadian businesses actually use. There are dozens more for specialized property — when in doubt, ask your accountant which class applies.
| Class | Rate | What Goes In It |
|---|---|---|
| 1 | 4% | Buildings acquired after 1987. Additional allowances apply to some non-residential buildings, and new manufacturing buildings acquired after November 3, 2025 can be fully expensed. |
| 8 | 20% | Furniture, appliances, tools costing $500 or more, and machinery or equipment not in another class — the default catch-all. |
| 10 | 30% | Motor vehicles, and passenger vehicles costing up to the year's ceiling ($39,000 before tax for 2026). |
| 10.1 | 30% | Passenger vehicles over the ceiling. Each vehicle sits in its own pool, capped at the ceiling; no terminal loss on disposal. |
| 12 | 100% | Small tools under $500, dishes and cutlery, medical instruments under $500, and application software. |
| 13 | SL | Leasehold improvements — straight-line over the lease term rather than declining balance. Not modelled in this calculator. |
| 14.1 | 5% | Goodwill, incorporation costs over $3,000, and other intangibles. |
| 16 | 40% | Taxis, vehicles for rent, coin-operated games, and freight trucks over 11,788 kg. |
| 43 | 30% | Manufacturing and processing machinery that doesn't qualify for Class 53. |
| 44 | 25% | Patents and rights to use patented information. Eligible for 100% first-year expensing if acquired after April 15, 2024 and in use before 2027. |
| 46 | 30% | Data network infrastructure equipment. Same 100% first-year window as Class 44. |
| 50 | 55% | Computer hardware and systems software. Eligible for 100% first-year expensing if acquired after April 15, 2024 and in use before 2027. |
| 53 | 50% | Manufacturing and processing machinery acquired 2016–2025. 100% first-year write-off under the AII and RIIP. |
| 54 | 30% | Zero-emission vehicles, capped at $61,000 before tax. 100% first-year write-off under the AII and RIIP. |
| 55 | 40% | Zero-emission taxis and rental vehicles. Same first-year treatment as Class 54. |
Rates per the CRA's CCA class guidance (T4012 / T2 Schedule 8) and the 2026 automobile deduction limits announced by Finance Canada on January 14, 2026. First-year incentives per Bill C-15, Royal Assent March 26, 2026. Verified July 2026 — see the full CRA class list.
Both methods are standard accounting practice. The difference is precision — monthly rounds, daily counts.
Straight-line spreads cost evenly over the asset's useful life. With daily precision, you get the exact fraction of a year — not a rounded month count.
A $100,000 asset at 10%/year held for 219 days depreciates $6,000.00 exactly — not $5,000 (6 months) or $7,500 (9 months). It's 219 days.
Declining balance applies the rate to the remaining net book value, not the original cost. Depreciation is higher early on and decreases over time. Daily calculation applies this iteratively — each day's starting value is the previous day's ending value.
This is why the total doesn't equal Cost × Rate × Years. The base shrinks daily, which means the asset never technically reaches zero — it approaches it asymptotically.
On one asset the difference between daily and monthly is often a few dollars. Across 200 assets with different acquisition dates, different methods, and arbitrary fiscal periods, those rounding errors compound.
Audit season is when it hurts most. Your depreciation schedule shows one number. Your ledger shows another. Reconciling them takes hours when the discrepancy comes from accumulated monthly rounding.
faManager calculates every asset to the exact day. Reports balance to the penny against the ledger because there's no rounding to reconcile.
The calculator shows one asset at a time. faManager tracks your whole register — daily book depreciation, reports for any date range, and journal entries. Free for up to 50 assets.
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