Zero-emission vehicles in Ontario
An Ontario corporation buying electric vans, trucks and fleet vehicles on or after September 15, 2026 can deduct 100% of the cost in the year the property is available for use. Combined tax rates in Ontario: 11.2% on small business income and 26.5% at the general rate.
Zero-emission vehicles in Ontario
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 | $25,000 | $2,800 | $6,625 | $991 |
| $100,000 | $15,000 | $100,000 | $11,200 | $26,500 | $3,965 |
| $250,000 | $37,500 | $250,000 | $28,000 | $66,250 | $9,912 |
Ontario's small business rate drops to 2.2% effective July 1, 2026 (from 3.2%). Corporations with a fiscal year straddling that date get a blended rate. Class 54 passenger ZEVs are capped at a prescribed cost limit. Commercial ZEVs in Class 55 are not.
See also: all assets in Ontario · Zero-emission vehicles in other provinces
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