Passenger vehicles (Class 10.1) in Alberta
An Alberta corporation buying passenger cars and SUVs over the cost cap on or after September 15, 2026 cannot use the Mega Deduction; regular Class 10.1 CCA at 30% still applies. Combined tax rates in Alberta: 11.0% on small business income and 23.0% at the general rate.
Passenger vehicles (Class 10.1) in Alberta
Worked examples
| Purchase | Old year-one deduction | New year-one deduction | Tax reduction (small business) | Tax reduction (general rate) | NPV benefit (general) |
|---|---|---|---|---|---|
| $25,000 | $3,750 | $3,750 | $413 | $863 | $0 |
| $100,000 | $15,000 | $15,000 | $1,650 | $3,450 | $0 |
| $250,000 | $37,500 | $37,500 | $4,125 | $8,625 | $0 |
Alberta has the lowest general corporate rate in Canada at 8%. If you need a vehicle for the business, a cargo van or a work pickup that is not a 'passenger vehicle' is the route to a full first-year deduction.
See also: all assets in Alberta · Passenger vehicles (Class 10.1) in other provinces
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