Table 6 – Capital cost allowance rates (2016)

Description of property Rate1 Class
Buildings acquired since 1988, including component parts 4% 1
Buildings2 acquired on or after March 19, 2007 and used at least 90% (by square footage) for manufacturing and processing (separate class) 10%3
Buildings2 acquired on or after March 19, 2007 and used 90% (by square footage) 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 since 2001) 30% 10.1
Application software, small tools (i.e. less than $500), cutlery, linen, uniforms, moulds and medical instruments costing less than $500 100%4 12
Leasehold improvements Lease term5 13
Taxis, automobiles acquired for short-term leasing and coin-operated video games 40% 16
Parking areas or similar surface construction 8% 17
Manufacturing or processing equipment acquired before March 19, 2007 and after 2025 30% 43
Manufacturing or processing equipment acquired on or after March 19, 2007 and before 2016 50% Straight-line 29
Manufacturing or processing equipment acquired after 2015 and before 2026 50% 53
Computer equipment, systems software and related equipment acquired after March 22, 2004 and before March 19, 2007 45% 45
Computer equipment, systems software and related equipment acquired between March 19, 2007 and January 27, 2009 inclusive and after January 2011 55% 50
New computer equipment, systems software and related equipment acquired after January 27, 2009 and before February 2011 100%6 52
Data network infrastructure equipment acquired after March 22, 2004 30% 46

1 Rates are declining balance unless otherwise indicated.
2 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 March 19, 2007.
3 To access the accelerated rate, an election must be made to put the building addition into a separate class by attaching a letter to the income tax return for the year in which the addition is acquired. Where the return is filed electronically, the election should be included in the notes to the General Index of Financial Information (GIFI) in the tax return. The tax return must be filed by its filing deadline for the election to be valid.
4 Half-year rule in year of acquisition does not apply to the following Class 12 items: small tools, cutlery, linen and uniforms.
5 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.
6 Half-year rule in year of acquisition does not apply.