Is a Website Tax Deductible in Canada?

Usually, yes, in one of two ways. The CRA says a website development cost is either current or capital, and which one is always a question of fact. A current cost is claimed as a business expense. A capital cost is claimed over several years through capital cost allowance, called CCA.

The CRA’s e-commerce page, modified May 5, 2026, is short on this. It says there are no specific provisions in the Income Tax Act for website development costs. Some principles from the CRA’s Income Tax Folio S3-F4-C1 can apply. I read it, and every other CRA page quoted here, on September 23, 2026.

So there is no single line on a form that says “website”. Your accountant looks at what each cost bought and applies the CRA’s general rules. This guide shows you those rules, so the conversation goes faster.

Is a website a current expense or a capital expense?

It depends on what the cost buys. The CRA says a capital expense generally gives a lasting benefit or advantage. A current expense usually recurs after a short period. A build that serves the business for years looks like the first. A monthly fee looks like the second.

The CRA’s page on current or capital expenses lists the questions it asks. They are written for property in general, so apply them to your website with your accountant.

Does it give a lasting benefit? The CRA says a capital expense generally does.
Does it recur after a short period? The CRA says a current expense usually does.
Does it maintain what you have, or improve it beyond its original condition? An improvement is probably capital.
Is it for a part of something, or a separate asset of its own?
How big is the cost compared to the value of the thing it is spent on?

The CRA also says you cannot deduct the full cost of depreciable property in the year you acquire it. That is the practical difference. A current expense comes off this year’s income. A capital cost comes off a little at a time.

Which CCA class does a website go in?

The CRA’s e-commerce page names two. A capital website cost may be general-purpose computer hardware under Class 10(f), or computer software under Class 12(o). On the CRA’s class list, software that is not systems software is Class 12 at 100%. Computer hardware bought after March 18, 2007 is Class 50 at 55%.

What is being compared	What the CRA puts in it	CCA rate
Class 12	Computer software that is not systems software	100%, subject to the half-year rule
Class 50	General-purpose computer hardware and its systems software, acquired after March 18, 2007	55%
Class 10	The same hardware, acquired before 2005, with conditions	30%

Two notes from the same CRA pages. First, the half-year rule. In the year you acquire property, you can usually claim CCA on only half of what you added to a class. The CRA says Class 12 software is subject to it. Second, CCA is optional. You can claim any amount from zero to the maximum in a year.

Incentives can change the first year. The CRA’s accelerated investment incentive page, modified July 2025, suspends the half-year rule for eligible property acquired after November 20, 2018 and available for use before 2028, with a phase-down after 2023. The class list also mentions a proposed 100% first-year deduction for Class 50 acquired after April 15, 2024 and available for use before 2027. Proposed rules are not yet law. Your accountant knows which apply in your tax year.

The e-commerce page still points hardware at Class 10(f), while the class list sends hardware bought after March 18, 2007 to Class 50. Your accountant reconciles the two for your return.

Are monthly website fees treated differently from a one-time build?

Often, yes. A monthly platform plan recurs every month, which matches how the CRA describes a current expense. A one-time build that lasts years matches its description of a capital one. The CRA’s pages do not name platform fees, so your accountant makes the call.

Here is how the two usually look in a small business. The platform plan, hosting, the domain renewal, email seats and apps come back every month or every year. The build happens once, and the site keeps working after it. The website cost guide separates those two kinds of cost line by line.

The tax question and the ownership question are the same question. Does the money buy a month, or something that lasts?

The same split drives the rent or own decision. A rental site never becomes yours, however long you pay. The rent vs own math for a Canadian website runs the three-year numbers on both.

Can I claim the GST on my website?

If you are registered for GST/HST, usually yes. The CRA says registrants recover the GST/HST paid on purchases for their commercial activities by claiming input tax credits. A business that is not registered cannot claim them. The GST it pays becomes part of the cost.

In BC, a website quote can carry GST and sometimes PST, depending on what it includes. Whether website design is subject to PST in BC walks through which lines are taxable.

What if I pay for the website over 12 months?

Then bring the plan terms to your accountant. When a cost is claimed can depend on when you acquire the asset and start using it. On a payment plan, the payment dates and the ownership date may differ from the launch date.

My own plan works this way. The Trailhead is $2,000 once, or $500 at signing and 12 payments of $142 ($2,204 total) on Own It Monthly. The site launches when it is built. The domain is in your name from day one. Ownership of the code, design and content transfers at payment 12. Those dates are the facts your accountant will ask for.

What should I bring my accountant?

Invoices that say what each dollar bought, the list of recurring bills, and the date the site went live. With those, your accountant can sort current from capital and pick the class. Five items cover it.

Every invoice for the build, with what each line bought: design, content, software, hardware.
The monthly and yearly bills: platform plan, hosting, domain, email, apps.
The date the site went live and started being used in the business.
Any payment plan terms, including when ownership of the site transfers to you.
Your GST/HST registration number, if you have one, so the GST paid can be claimed.

This guide is general information, not tax advice. Your accountant, or the CRA, decides how your own costs are claimed.

Sources and further reading

E-commerce (Canada Revenue Agency)
Read September 23, 2026 (modified May 5, 2026). No specific provisions in the Act for website development costs. Current or capital is always a question of fact. A capital cost may fall in Class 10(f) or Class 12(o).
Classes of depreciable property (Canada Revenue Agency)
Read September 23, 2026 (modified August 31, 2026). Class 12 at 100% for software that is not systems software, subject to the half-year rule. Class 50 at 55% for computer hardware acquired after March 18, 2007. Class 10 at 30% for the same hardware acquired before 2005.
Current or capital expenses (Canada Revenue Agency)
Read September 23, 2026 (modified August 31, 2026). It lists the CRA’s criteria, starting with whether the expense gives a lasting benefit.
Claiming capital cost allowance (Canada Revenue Agency)
Read September 23, 2026 (updated August 31, 2026). The full cost of depreciable property cannot be deducted in the year it is acquired.
Basic information about capital cost allowance (Canada Revenue Agency)
Read September 23, 2026 (modified August 31, 2026). It explains the half-year rule. It also says you can claim any amount from zero to the maximum.
Accelerated investment incentive (Canada Revenue Agency)
Read September 23, 2026 (modified July 21, 2025). The incentive suspends the half-year rule for eligible property acquired after November 20, 2018 and available for use before 2028, phased down after 2023.
Input tax credits (Canada Revenue Agency)
Read September 23, 2026 (modified November 19, 2024). GST/HST registrants recover the GST/HST paid on purchases for their commercial activities.

Frequently asked questions

Can I write off my website in Canada?

Usually, one way or another. The CRA says a website development cost is current or capital. It says the answer is always a question of fact. A current cost is deducted as an expense. A capital cost is claimed over time through capital cost allowance. Your accountant decides which applies to your invoice.

What CCA class is a website in Canada?

The CRA’s e-commerce page says a capital website cost may be computer hardware under Class 10(f), or computer software under Class 12(o). Class 12 has a 100% rate and is subject to the half-year rule. For computer hardware acquired after March 18, 2007, the CRA’s class list uses Class 50 at 55%. Checked September 2026.

Are Shopify, Wix or hosting fees tax deductible?

The CRA’s pages do not name platform fees. Its own test says a current expense usually recurs after a short period, and a monthly plan recurs every month. Your accountant makes the call for your return. If you are registered for GST/HST, the GST on those bills can usually come back as an input tax credit.

Is a website an asset?

It can be, when the cost is capital. The CRA says a capital expense generally gives a lasting benefit or advantage. A custom build that serves the business for years fits that description more than a one-month subscription does. The CRA leaves the final answer to the facts of each case.

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Is a website tax deductible in Canada? What the CRA actually says