What CCA class does my company car fall into?
A passenger vehicle purchased for over $36,000 (before HST/QST) is Class 10.1, with a per-vehicle capital-cost cap of $36,000 for 2026 acquisitions and no recapture on disposal. Passenger vehicles at or below the cap, and commercial motor vehicles (cargo van, pickup used primarily for goods transport), are Class 10. Both classes use a 30% declining balance rate.
Section 13(7)(g) defines passenger vehicle. Regulation 1100(1)(a)(x) and Sch. II Class 10.1 impose the per-vehicle limit and separate-pool treatment. The passenger-vehicle capital-cost limit for 2026 remains $36,000 pre-tax (indexed by Department of Finance; verify the current-year figure each January). HST on the capped portion is claimable as an ITC only on the $36,000 base, not on the excess.
Example: an Ontario CCPC buys a 2026 luxury sedan for $75,000 plus $9,750 HST. Class 10.1 applies. Capital cost for CCA is capped at $36,000; the $39,000 excess is a permanent non-deduction. ITC on HST is limited to $4,680 (13% on $36,000), not the full $9,750. First-year CCA under the AII (accelerated investment incentive) is 1.5 x 30% x $36,000 = $16,200 (subject to phase-out schedule).
A pickup truck used more than 50% for transporting goods and equipment falls outside the passenger-vehicle definition and is Class 10, no cap. Same for cargo vans and specific work vehicles (Class 16 for taxis).
Note: Zero-emission passenger vehicles are Class 54, with a higher capital-cost limit of $61,000 for 2026 acquisitions (verify current-year figure). Class 55 covers other zero-emission vehicles.
Source: canada.ca â Passenger vehicle depreciation
— Bader A. Chowdry, CPA, CA, LPA — Insight Accounting CPA
Disclaimer: Bader A. Chowdry, CPA, CA, LPA is a Licensed Public Accountant regulated by CPA Ontario. Insight Accounting CPA Professional Corporation is a Chartered Professional Accountant firm. This content is general information only and does not constitute professional advice for your specific facts. Confirm current rules and figures with your own advisor before acting.