To calculate your percentage: Business square footage ÷ total home square footage. A 150 sq ft office in a 1,200 sq ft home = 12.5%.
Vehicle Deduction
Expense
Deductibility
2026 Limits
Fuel/gas
Business %
No cap (business km only)
Insurance
Business %
No cap
Maintenance/repairs
Business %
No cap
Lease payments
Business %
Max $950/mo + tax
CCA (owned vehicle)
Business %
Max $37,000 + tax (Class 10.1)
Interest on car loan
Business %
Max $300/mo
Parking (business)
100% business
Full amount
Highway tolls (407, etc.)
Business %
No cap
You must keep a mileage log showing date, destination, purpose, and kilometres for each business trip.
Capital Cost Allowance (CCA) Classes
CCA Class
Assets
Rate
Accelerated First-Year Rate
Class 1
Buildings (non-residential)
4%
6%
Class 8
Furniture, fixtures, equipment
20%
30%
Class 10
Vehicles (under $37,000)
30%
45%
Class 10.1
Passenger vehicles (over $37,000)
30%
45% (on $37K max)
Class 12
Software (under $500), tools
100%
100%
Class 14.1
Goodwill, customer lists
5%
7.5%
Class 50
Computers and electronic equipment
55%
82.5%
Class 54
Zero-emission vehicles
100%
100% (up to $61,000)
Tax Deduction Planner: What to Save
Expense Category
Est. Annual Total
Tax Savings (30% rate)
Home office (15%)
$5,000–$8,000
$1,500–$2,400
Vehicle (50% business)
$4,000–$8,000
$1,200–$2,400
Phone & internet
$1,200–$2,400
$360–$720
Professional fees
$1,000–$5,000
$300–$1,500
Office supplies/software
$500–$2,000
$150–$600
Meals (50%)
$500–$2,000
$150–$600
Total potential deductions
$12,200–$27,400
$3,660–$8,220 saved
Immediate expensing for small CCPCs
Canadian-Controlled Private Corporations (CCPCs) can use the immediate expensing incentive to deduct up to $1.5 million of eligible depreciable property in the year of acquisition — instead of claiming CCA over multiple years. Eligible property includes Class 50 computers, Class 10 vehicles, office equipment, and most other CCA classes (Class 1 buildings and goodwill are excluded). This was introduced as a temporary measure but has been extended; check the current CRA guidance for the applicable tax years. Sole proprietors and partnerships of individuals also qualify, with a combined limit shared among associated businesses.