Rental property CCA calculator (Canada): capital cost allowance and UCC
Work out the capital cost allowance (CCA) you can claim on a Canadian rental property, class by class, and the undepreciated capital cost (UCC) to carry into next year. It applies the half-year rule, the rule that CCA cannot create or increase a rental loss, and flags recapture and terminal losses. Everything runs in your browser; nothing you type is sent anywhere.
Fill in the form and press Calculate.
Not tax advice; arithmetic on the numbers you enter. Based on CRA Guide T4036 Rev. 25 (2025 tax year), checked 2026-11-10.
Reaccelerated investment incentive (RII): proposed, status unverified
CRA Guide T4036 Rev. 25 says that "under proposed changes" the reaccelerated investment incentive applies to qualifying property acquired on or after January 1, 2025 and available for use before 2034. For a typical class, it gives 1.5 times the full-rate claim in the first year, or three times the half-year amount. CRA's separate accelerated investment incentive page (modified 2025-07-21) does not mention it. We have not verified whether the RII has become law, so the calculator never applies it unless you choose it. The default is the half-year rule, which gives the smallest first-year claim. The AII option (two times the half-year amount) follows CRA's AII page, which applies it to eligible property available for use from 2024 to 2027. Whether your property is eligible for either one is up to you and your accountant. The calculator does not decide it.
How it is calculated
- UCC after additions and disposals (T4036 Area A, column 7) is the opening UCC plus the cost of additions minus the proceeds of disposition.
- If that is negative, you have a recapture of CCA (line 9947). No CCA is claimed and the closing UCC is $0.
- If it is positive and no property is left in the class, you may have a terminal loss (line 9948). No CCA is claimed and the closing UCC is $0.
- Half-year rule: in the year of purchase, CCA is normally limited to half of the net additions (additions minus proceeds, never below zero). AII adds the other half back, and the proposed RII adds another half on top.
- Maximum CCA is the class rate times the adjusted amount, rounded down to the cent.
- Rental-loss rule: your total claim can't be more than your combined net rental income before CCA. If that figure is zero or a loss, the CCA is $0. Rows without your own claim are filled from the highest rate first. Claims you enter are reduced to the row maximum and to whatever room is left under the cap, and a warning tells you when that happens.
- Closing UCC (column 24) is the column 7 amount minus the CCA claimed. Enter it next year as the opening UCC.
Worked examples
| Example | Inputs | CCA claimed | Closing UCC |
|---|---|---|---|
| 1. Loss cap | Class 1 building, opening UCC $180,000, net rental income $5,000 | $5,000.00 (the maximum would be $7,200.00) | $175,000.00 |
| 2a. Appliances, half-year rule | Class 8, $3,000 of new appliances, no opening UCC | $300.00 | $2,700.00 |
| 2b. Same, AII (2x) | As 2a | $600.00 | $2,400.00 |
| 2c. Same, RII as proposed (3x) | As 2a | $900.00 | $2,100.00 |
| 3. Two properties | Net +$6,000 and −$2,000 (combined $4,000). Class 1 UCC $150,000, Class 8 UCC $2,000 | $4,000.00: $400.00 on Class 8 and $3,600.00 on Class 1 | Class 8 $1,600.00, Class 1 $146,400.00 |
| 4. Overall loss | Three properties net +$1,500, +$2,000 and −$4,000 (combined −$500) | $0.00 | Unchanged |
Example 4 follows CRA's own example in T4036: with an "overall net loss of $500 ... he cannot claim any CCA on his rental buildings or appliances."
Not handled by this calculator
- Recapture and terminal loss are flagged only. It does not cover the replacement-property or deferral rules, the special rules for disposing of a building (see Guide T4002), or capital gains.
- Separate classes: it does not decide which buildings costing $50,000 or more need their own class. Enter one row per separate class.
- Mixed additions in one row: it does not decide AII or RII eligibility, and each row uses one first-year treatment. Split eligible and non-eligible additions into separate rows.
- Not covered at all:
- change of use between personal and rental, and personal-use portions
- co-ownership and partnership shares (T5013)
- prorating for a short first fiscal period
- the 2026 Class 10.1 cost limit and the half-year rule on the sale of a Class 10.1 vehicle
- Class 3 addition limits
- Class 31 and 32 MURBs
- immediate expensing
- the CCA on a non-compliant short-term rental (line 9367)
- whether a building qualifies for the proposed 10% purpose-built rate (you select it)
- how to split the purchase price between land and building
- It does not add recapture to your income or deduct a terminal loss. Both change your rental income, so ask an accountant.
Sources
Canada Revenue Agency (canada.ca). Checked 2026-11-10.
- Guide T4036, Rental Income (T4036(E) Rev. 25, 2025 tax year): class rates, half-year rule, Area A columns, recapture, terminal loss and the rental-loss rule
- Accelerated investment incentive: AII eligibility and the 2024 to 2027 phase-out
The 2026 edition of T4036 is not published yet. We will recheck the RII wording and the 2026 Class 10.1 limit when it is.
Keeping the numbers for next year
The closing UCC from this year is next year's opening UCC, so keep it with your records. The Rental Property Income & Expense Tracker, a paid spreadsheet by Kyle Falk, records rent and expenses for each property by CRA Form T776 line label. It is record-keeping only and does not calculate CCA. The Small Landlord Records Bundle includes it with three other landlord record sheets. To gather everything for tax time, see the free landlord year-end records checklist. This calculator stays free either way.