Net book value is an asset's original cost minus its accumulated depreciation, the amount at which it is carried on the balance sheet.
Net book value (NBV), also called carrying value, is what a fixed asset is worth on the books: its original cost less all depreciation charged to date. It reflects the accounting estimate of remaining value, not necessarily the market value or the tax value, which can all differ.
NBV matters when an asset is sold: proceeds above NBV produce an accounting gain, below it a loss. Note that NBV (accounting) and undepreciated capital cost (tax) are usually different numbers, because book depreciation and CCA use different methods and rates.
A vehicle bought for $40,000 with $25,000 of accumulated depreciation has a net book value of $15,000. If sold for $18,000, the books show a $3,000 gain over NBV.
Our certified accounting firm handles this for businesses and individuals across Canada, at fixed fees with no surprises.
Book a Free 15-Minute CallNet Book Value Frequently Asked Questions
Common questions regarding our compliance workflows and service guarantees.
Commonly Searched Net Book Value Questions
The questions Canadians actually search on this topic, answered plainly. Browse every question in the Canadian tax answers directory.
Canada runs three systems. The federal GST is 5% for 2026 and applies nationally. Five participating provinces fold a provincial share into one harmonised rate: 13% in Ontario, 15% in New Brunswick, Newfoundland and Labrador and Prince Edward Island, and 14% in Nova Scotia since 1 April 2025. Others add their own tax to the 5% GST, giving 12% in British Columbia and Manitoba, 11% in Saskatchewan and 14.975% in Quebec. Alberta and the territories charge 5% only.
A non-refundable credit reduces the tax you owe to zero but no further, so any unused part is lost, carried forward, or transferred to a spouse or parent where the rule allows it. A refundable credit is paid to you even when no tax is owed, which is how benefit-style payments reach people with little or no income. Most personal credits on the federal return, including the basic personal amount, are non-refundable.
Income tax starts once taxable income passes the basic personal amount, and a separate provincial or territorial amount applies on top, so the break-even point shifts every year with indexation and differs by where you live. Look up the current amounts on the CRA site or in the year's return package. Credits for tuition, disability, pension income or dependants push the point higher. Filing can still be worthwhile or required with no tax owing, for benefits and credits.
A ratepayer is someone who pays municipal rates, meaning property taxes and local utility charges, on property they own or occupy. The municipality sets a rate against assessed value, bills the ratepayer, and funds local services from what it collects; ratepayer associations speak for owners in an area. Property tax is municipal and quite separate from income tax, though on a rental or business property it is generally deductible against that income.
Related Terms
Related Services
Reviewed and fact-checked by Udit Gupta
Ex Big 4 — Ernst & Young, Deloitte · International & cross-border tax specialist · CPA Canada (In-Depth Tax Program) · Chartered accountant, ICAI & MIA
Udit Gupta has over 15 years of experience helping corporations and business owners with corporate structuring, corporate tax filing, bookkeeping, payroll, GST/HST, cross-border tax and CRA representation. Big 4 trained at Ernst & Young and Deloitte, and qualified as a chartered accountant in India and again in Malaysia, he founded his accounting practice in 2014 to serve entrepreneurs, startups and non-resident business owners across Canada. View full member bio.
The Institute of Chartered Accountants of India — member 521458 · Malaysian Institute of Accountants — member CA 44667 · Ex Big 4: Ernst & Young, Deloitte · CPA Canada (In-Depth Tax Program), completed 19 Dec 2023 · In-Depth GST/HST Part I, 12 Jul 2022 · Part II, 5 Jul 2023
Editorial policy. Every page is researched against primary sources — the Income Tax Act, CRA publications and CPA Canada guidance — and every rate or threshold is stated with the tax year it applies to.
One fee, agreed up front
Lock in a fixed fee for your filing
Send a few details and a professional tax accountant quotes one fixed fee for the whole job — no hourly billing, nothing added later.
- Fixed fee agreed before work starts
- Pay after the service
- Free 15-minute consultation
24/7 Helpline: +1 (416) 619-0068
Secure Fixed Quote
Fill details below to lock in pricing and get started today.
Our Partners Are Alumni of the World's Top Accounting and Tax Institutions
