Yes, a laptop used for business is deductible in Canada — but usually as Capital Cost Allowance (CCA) rather than as an immediate current-year expense. Here is exactly how the CRA treats laptop and computer purchases, what rate applies, and how to claim it on T2125.
CCA vs Immediate Expense: Why It Matters
The CRA treats most major purchases (over roughly $500) as capital assets to be depreciated over time, not expensed in the year of purchase. A $2,400 laptop is a capital asset — you cannot deduct $2,400 in the year you buy it. Instead, you claim a portion each year using CCA rates.
Exception — Immediate Expensing for CCPCs: Canadian-Controlled Private Corporations can immediately expense up to $1.5 million in eligible depreciable property in the year of acquisition. Sole proprietors and unincorporated businesses also had access to immediate expensing for eligible property acquired after January 1, 2022 through 2024, but this has since phased out for individuals. For 2025–2026 tax years, most individual freelancers use the standard CCA method.
Which CCA Class Does a Laptop Belong To?
| Asset Type | CCA Class | Annual Rate |
|---|---|---|
| General-purpose computers, laptops, tablets | Class 10 or Class 50 | 30% (Class 10) or 55% (Class 50) |
| Data handling equipment and electronic computers | Class 50 | 55% declining balance |
| Zero-emission computing equipment (some) | Class 14.1 | Various |
Most standard laptops fall into Class 50 (55% declining balance). Some older guidance placed laptops in Class 10 — your tax software will prompt you to confirm based on the acquisition date. Class 50 is generally more beneficial because the higher rate means faster depreciation.
How to Calculate Your Laptop CCA
Example: $2,400 laptop, Class 50 (55%), purchased January 2026, 100% business use:
- Cost: $2,400
- Half-year rule (applies in year of purchase): deduct CCA on 50% of the cost in year 1
- Year 1 CCA: $2,400 × 55% × 50% = $660
- Remaining UCC (Undepreciated Capital Cost): $2,400 – $660 = $1,740
- Year 2 CCA: $1,740 × 55% = $957
- Year 3 CCA: ($1,740 – $957) × 55% = $430
Your tax software handles this automatically in Part 8 of T2125 — enter the asset cost and class and the software calculates the allowable CCA each year.
Mixed Business and Personal Use
If you use the laptop for both business and personal purposes, only the business-use portion is deductible. Estimate your business-use percentage: if you use the laptop 70% for work, claim 70% of the CCA. Document your estimate with a brief note in your records.
What About Accessories?
Smaller accessories (mouse, keyboard, webcam, external monitor) may be expensed directly as “Office expenses” (line 8810 of T2125) rather than capitalized as CCA, if individually under approximately $500. A monitor costing $800 would typically be capitalized and depreciated. There is no bright-line CRA rule — reasonableness and consistency matter.
Frequently Asked Questions
What if I bought the laptop before I started freelancing?
You can add a pre-existing asset to your CCA schedule when you start using it for business. The cost for CCA purposes is the fair market value of the laptop at the time you converted it to business use — not the original purchase price. Your tax software will ask for this when you add it to Part 8 of T2125.
Can I claim the full laptop cost as an “office expense” instead of CCA?
The CRA requires capital assets to be depreciated via CCA rather than immediately expensed. Claiming a $2,400 laptop in the “Office expenses” line (line 8810) instead of CCA is technically incorrect and may be challenged in an audit. Use Part 8 (CCA) for significant equipment purchases.
Can I claim the GST/HST I paid on the laptop?
Yes — if you are registered for GST/HST, the HST paid on the laptop is an ITC (Input Tax Credit) claimable on your GST/HST return. The ITC is separate from the income tax CCA deduction. Claim the ITC in the period you purchased the laptop; claim the CCA on your T1 return for the year of purchase (and subsequent years).