The automobile deduction limits raised — the CCA ceiling for passenger vehicles to $39,000 plus tax for 2026. In your opinion, is that high enough?
Comments
My vote leans more yes than no,
The CCA offers a good deduction for anyone using an auto for mixed-use: employee expenses, small business owners.
it keeps a limitation on higher priced vehicles and controls abuse of the tax system.
The onus still falls on the tax payer for doing their part with an auto log, tracking their receipts with statements, thinking strategically with all related auto expenses, and when the CCA is added you have a very strong tax deduction. I think the 30% class percentage is too high and should be lowered to offer a more sustainable depreciation long-term.
By Ann Laurin on January 22, 2026
I always struggled with the cap on CCA for vehicles as in reality the purchase price of the vehicle is way more then the cap. I understand that businesses shouldn’t be purchasing luxury vehicles for business - unless they are in the business of providing luxury taxi service, but in todays market the $39000 cap doesn’t even come close to some vehicles needed for business - pick up trucks.
By Tammy Machan on January 22, 2026
For a class 10.1 vehicle acquired after September 1, 1989, the capital cost limit was $24,000, increasing a scant $14,000 to current year. The automobile deduction limit is far behind the realistic costs associated with vehicle ownership or leasing.
By B Anderson on January 21, 2026
Depends if you can find a car for that amount of money.
Comments
My vote leans more yes than no,
The CCA offers a good deduction for anyone using an auto for mixed-use: employee expenses, small business owners.
it keeps a limitation on higher priced vehicles and controls abuse of the tax system.
The onus still falls on the tax payer for doing their part with an auto log, tracking their receipts with statements, thinking strategically with all related auto expenses, and when the CCA is added you have a very strong tax deduction. I think the 30% class percentage is too high and should be lowered to offer a more sustainable depreciation long-term.
By Ann Laurin on January 22, 2026
I always struggled with the cap on CCA for vehicles as in reality the purchase price of the vehicle is way more then the cap. I understand that businesses shouldn’t be purchasing luxury vehicles for business - unless they are in the business of providing luxury taxi service, but in todays market the $39000 cap doesn’t even come close to some vehicles needed for business - pick up trucks.
By Tammy Machan on January 22, 2026
For a class 10.1 vehicle acquired after September 1, 1989, the capital cost limit was $24,000, increasing a scant $14,000 to current year. The automobile deduction limit is far behind the realistic costs associated with vehicle ownership or leasing.
By B Anderson on January 21, 2026
Depends if you can find a car for that amount of money.
By Jean Gaudry on January 21, 2026