Capital cost allowance
CCA calculator for Canadian sole proprietors
Work out the depreciation you can claim on a business asset. Pick the class, enter the cost, and see your T2125 line 9936 deduction and the value carried to next year, with the half-year rule already applied.
- All the common CCA classes and rates
- Half-year rule applied for you
- Five-year UCC projection
Capital Cost Allowance (CCA) Calculator
Declining balance, half-year rule · T2125 line 9936
Laptops, desktops, servers, monitors, and the operating software that runs them. Rate: 55% per year.
For a mixed-use asset like a car. Leave blank if it is used 100% for business.
Pick a class and enter the cost to see your CCA and remaining UCC.
How capital cost allowance works
When you buy something that lasts more than a year (a laptop, a vehicle, tools, furniture), you cannot deduct the whole cost at once. Instead you deduct a percentage of its remaining value each year. That yearly deduction is capital cost allowance, and it goes on line 9936 of your T2125.
Each asset belongs to a class with a set rate. A laptop (Class 50) writes off at 55% a year, a vehicle (Class 10) at 30%, furniture (Class 8) at 20%. Because it is declining balance, you apply the rate to what is left, so the deduction shrinks each year and the asset is never fully written off in the books, just reduced toward zero.
The number that carries between years is the undepreciated capital cost (UCC). It is simply the cost minus all the CCA you have claimed so far. Keep it, because next year's deduction is calculated from it. For the deeper walkthrough, see our guide to capital cost allowance for the self-employed.
Frequently asked questions
What is capital cost allowance (CCA)?
CCA is how the CRA lets you deduct the cost of a business asset (like a laptop, vehicle, or equipment) over several years instead of all at once. Each type of asset sits in a class with its own yearly rate, and you claim a percentage of the remaining value each year on line 9936 of your T2125.
What is the half-year rule?
In the year you buy an asset, you can only claim CCA on half its cost. It stops people from buying something on December 31 and claiming a full year of depreciation. This calculator applies the half-year rule automatically in year one, which is why year two is usually a larger claim than year one.
Do I have to claim CCA every year?
No. CCA is optional, and you can claim any amount from zero up to the maximum. Skipping it in a low-income year keeps more undepreciated capital cost (UCC) available to deduct in a future year when your income, and your tax rate, is higher. That flexibility is one reason CCA is worth understanding rather than leaving to guesswork.
How do I calculate CCA on a vehicle used partly for business?
You calculate CCA on the full cost of the vehicle to track its remaining value, but you only deduct the business-use portion on your T2125. Enter your business-use percentage in the calculator and it splits the two: the full CCA reduces your UCC, and the business share is what you actually claim.
What CCA class is a computer or laptop?
Computers, laptops, servers, and their systems software are Class 50, which has a 55% declining-balance rate, the fastest write-off of the common classes. General equipment and most vehicles are Class 10 (30%), furniture and tools costing $500 or more are Class 8 (20%), and small tools under $500 are Class 12 (100%).
Keep going
Track assets and CCA automatically with NorthOSThis calculator is for information only and is not tax advice. It applies the standard half-year rule; accelerated incentives may allow a larger first-year claim. Verify with the CRA (Guide T4002) or a qualified professional.