CCA Class 10. Passenger Vehicles

Definition

Class 10 is the 30% declining-balance CCA class for motor vehicles, including automobiles, trucks, vans, and tractors used for hauling freight. It is pooled: all Class 10 vehicles sit in a single UCC account. The closely related Class 10.1 is a single-asset class used for passenger vehicles whose cost exceeds the prescribed limit in Regulation 7307. Ensure 2026 thresholds match the regulations before relying on them below.

Key rules

• Scope: Class 10 covers "automotive equipment" not otherwise specified, including passenger vehicles costing up to the prescribed limit, vans, pickup trucks, and most off-road motorised equipment (for example a forklift).
• Rate: 30% declining balance.
• Passenger vehicle cost threshold (Regulation 7307, updated annually): confirm the 2026 amount. For 2025 the capped capital cost on a passenger vehicle was $37,000 before GST/HST/PST, and CRA typically adjusts the amount each January. A passenger vehicle costing above the threshold is Class 10.1, with its capital cost capped at the threshold plus applicable tax.
• Class 10.1 rules: one car per class (separate UCC for each vehicle), half-year rule applies only in the year of acquisition, no recapture or terminal loss on disposition, and a half-year CCA is allowed in the year of disposition (Regulation 1100(2.5)).
• Zero-emission passenger vehicles use Class 54 or 55 (not Class 10), with separate higher capital cost limits and 100% first-year deduction (subject to phase-out, confirm 2026 rate).
• Vehicle CCA can be limited by actual business-use percentage (kilometre log), and interest and leasing costs are capped under ITA s.67.2 and s.67.3.

Example

A BC corporation buys a used, arm's-length 2024 pickup truck on March 1, 2026, for $34,000 before tax. The truck is used 90% for business (logged). It is not AIIP because it is used by the taxpayer or a related party (confirm AIIP new-to-the-taxpayer rule in Regulation 1104(4)). Class 10 UCC opening balance is $8,000.

1. Additions to Class 10 = $34,000. No dispositions.
2. Half-year adjustment = $34,000 × 50% = $17,000.
3. CCA base = $8,000 + $34,000 − $17,000 = $25,000.
4. Class 10 CCA = $25,000 × 30% = $7,500.
5. Because the vehicle is used 90% for business, the deduction on Schedule 1 is $7,500. Business-use limitation applies at the expense line, not inside Class 10 pool mechanics.

If the truck had instead cost $48,000 before tax, it would be Class 10.1 (single-asset), capped at the Regulation 7307 limit plus sales taxes on that capped amount. The excess cost is permanently lost.

Common mistakes

• Putting a Class 10.1 vehicle into Class 10, which incorrectly pools a capped asset with other vehicles.
• Forgetting to apply the capital cost cap on a Class 10.1 purchase.
• Claiming full Class 10 CCA without adjusting for business-use percentage. Vehicle CCA is ordinarily limited to business-use kilometres.
• Claiming recapture or terminal loss on a Class 10.1 disposition. The rules do not apply; instead, half-year CCA is allowed in the year of disposition.
• Running a zero-emission passenger vehicle through Class 10. It belongs in Class 54 with a different cost limit.

Related concepts

Vehicle CCA interacts with the operating deduction under vehicle expense and the standby charge and operating benefit in taxable benefits. CCA mechanics follow CCA overview subject to the half-year rule and AIIP.