Corporate Taxation and U.S. Federal Tax Rates

Capital Cost Allowance Rates – 2018

This document is up to date as of August 31, 2018 and reflects the status of legislation, including proposed amendments at this date.
Description of Property Rate1 Class
Buildings acquired since 1988, including component parts 4% 1
Buildings acquired on or after March 19, 20072 and used 90% + for manufacturing and processing (separate class) 10%3
Buildings acquired on or after March 19, 20072 and used 90%+ for non-residential purposes (separate class) 6%3
Fences, greenhouses, wood buildings (farming and fishing) 10% 6
Assets not included in any other class such as accessories, equipment, furniture, photocopiers, telephones, tools costing more than $500 and outdoor advertising panels 20% 8
Automobiles, panel trucks, trucks, tractors, trailers 30% 10
Passenger vehicles, the cost of which is equal to or exceeds prescribed amounts ($30,000 + tax – see Section V) 30% 10.1
Application software, small tools, cutlery, linen, uniforms, moulds, medical instruments costing less than $500 and rented videotapes 100% 12
Leasehold improvements Lease term4 13
Taxis, automobiles acquired for short-term leasing and coin-operated video games 40% 16
Trucks and tractors designed for hauling freight 40%5 16
Parking areas or similar surface construction 8% 17
Manufacturing or processing equipment acquired before 2016 50% Straight-line 29
Manufacturing or processing equipment acquired after 2015 and before 2026 50%6 53
Computer equipment, systems software and related equipment 55%6 50
Data network infrastructure equipment 30% 46

1 Rates are declining balance unless otherwise indicated. 2 Building must not have been acquired or used by anyone before March 19, 2007. 3 Includes additions and modifications made on or after March 19, 2007 to a building included in a separate class even though the building was acquired before that date. 4 Straight-line capital cost allowance over the lease term (including the first renewal period), for a minimum of 5 years and a maximum of 40 years. 5 60% rate in Quebec for new vehicles. 6 In Quebec, an additional deduction of 35% of the CCA claimed applies to new goods acquired after March 28, 2017 and before March 28, 2018. This additional deduction is increased to 60% of the CCA claimed for new property acquired after March 27, 2018 and before April 1, 2020.

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