Equipment tax rules for a tree business in Canada
The Canada Revenue Agency sorts equipment into classes, each with a yearly rate called capital cost allowance. This page lists the classes and the faster write-off rule that its pages describe.
Checked against the sources at the bottom of this page on October 9, 2026. Rules, fees and pay change: the source has the last word.
This page reports what the official source says. It is not legal advice: ask the office named here. The office is the Canada Revenue Agency. The wider comparison is on the equipment tax rules page.
How the agency describes it
The agency calls the yearly deduction for equipment capital cost allowance. Its overview page says the full cost cannot be deducted in the year of purchase. Each item goes into a class, and the class sets the rate.
Classes that fit tree work
| Class | Rate and scope on the page |
|---|---|
| Class 8 | 20 percent; tools costing CA$500 or more |
| Class 10 | 30 percent; motor vehicles |
| Class 10.1 | 30 percent; passenger vehicle costing over CA$38,000 bought in 2025 |
| Class 12 | 100 percent; tools costing under CA$500 |
| Class 16 | 40 percent; freight trucks rated over 11,788 kg bought after December 6, 1991, and taxis |
| Classes 54, 55 and 56 | Zero emission vehicles and other zero emission automotive equipment |
The classes page carries a date of August 31, 2026.
Accelerated investment incentive
The incentive page covers property acquired after November 20, 2018 and available for use before 2028. It says the half-year rule is suspended for that property. It describes full expensing for Class 53 and for Classes 43.1 and 43.2 at 100 percent for property available for use through 2023, falling to 75 percent in 2024 and 2025 and 55 percent in 2026 and 2027, and not available from 2028.
Where the figures come from
Rates and thresholds change by class and by purchase date. The agency pages linked below are the source for every figure here.
Scope of the three pages
The overview page covers sole proprietorships and partnerships reporting business income and expenses. The classes page lists each class with its rate and the kind of property in it. The incentive page covers the change to the first year deduction for property acquired after November 20, 2018. Canada.ca pages carry a notice limiting commercial redistribution, so this page states the figures in its own words and links the agency pages for the full text.