Farm machinery: eligible
Self-propelled farm equipment is Class 10 (30%); most other farm equipment is Class 8 (20%). Farm corporations with strong years can now pull the full cost of a combine into the current year's deduction.
Examples of tractors, combines and farm equipment
- tractors, combines and sprayers
- grain handling and drying equipment
- livestock handling systems
- irrigation pivots
Planning tip
Farm buildings and silos are still buildings and do not qualify. Equipment inside them does.
CCA Class 10 / 8 · regular rate 30% declining balance · half-year rule normally applies in year one.
Calculate the deduction on tractors, combines and farm equipment
Worked examples (Ontario)
| Purchase | Old year-one deduction | New year-one deduction | Tax reduction, small business rate | Tax reduction, general rate |
|---|---|---|---|---|
| $25,000 | $3,750 | $25,000 | $2,800 | $6,625 |
| $100,000 | $15,000 | $100,000 | $11,200 | $26,500 |
| $250,000 | $37,500 | $250,000 | $28,000 | $66,250 |
Farm machinery by province
- Farm machinery in Alberta
- Farm machinery in British Columbia
- Farm machinery in Saskatchewan
- Farm machinery in Manitoba
- Farm machinery in Ontario
- Farm machinery in Quebec
- Farm machinery in New Brunswick
- Farm machinery in Nova Scotia
- Farm machinery in Prince Edward Island
- Farm machinery in Newfoundland and Labrador
- Farm machinery in Yukon
- Farm machinery in Northwest Territories
- Farm machinery in Nunavut
Free: the Year-End Purchase Checklist (PDF)
One page. What qualifies, what does not, the 'available for use' trap, and the seven questions to ask your accountant before you buy. No spam, unsubscribe any time.
The Mega Deduction Year-End Playbook
Everything you need to walk into your accountant's office with a plan instead of a question. Built for owner-managed Canadian businesses that expect a profitable 2026.
- Excel purchase planner with every province's rates and every CCA class pre-loaded. Model up to 12 purchases, see the year-one deduction, tax reduction and 10-year comparison for each.
- The 41-page Playbook (PDF): eligibility by asset class, the exclusions, 'available for use' rules, financing vs. leasing, recapture risk, CCPC vs. sole proprietor, and worked examples for 12 industries.
- Accountant brief template (Word): a one-page memo you fill in and send so your accountant can confirm the plan in one email instead of a meeting.
- 30-day action plan for purchases that must be delivered and installed before your fiscal year-end.
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Secure checkout by Stripe. Files delivered immediately after payment. Not tax advice; every plan should be confirmed by your accountant.