Section 179 calculator for equipment (2026)
How much of a machine, truck or other equipment you can deduct in 2026 under Section 179, after the phase-out, and roughly what it saves in tax.
Your numbers
This purchaseYour year See your resultResult
Section 179 deduction $250,000 Estimated tax saved $52,500at 21.0% Your 2026 limit $2,560,000the full $2,560,000 Left to depreciate $0bonus depreciation or MACRS can cover this Stop working this out by handFleetZap keeps each machine’s documents, meter readings and every repair cost in one record, so the history behind keep-or-replace decisions is in one place.
See FleetZap Maintenance · Try the demoThe formula
Deduction = The smaller of (Cost × Business use) and ($2,560,000 − Purchases over $4,090,000)
For tax years beginning in 2026, the IRS limit is $2,560,000, reduced dollar for dollar once the year’s Section 179 purchases pass $4,090,000 (Rev. Proc. 2025-32, section 4.24). The deduction also can’t be more than your business’s taxable income for the year; the rest carries forward. With the example: a $250,000 machine, 100% business use, is fully deductible and saves about $52,500 at 21%. This is an estimate, not tax advice; check with your accountant.
Using the numberWhat to do with it
- The machine has to be placed in service, not just ordered or paid for, by the end of the tax year.
- Bonus depreciation is the other route: 100% for qualified property acquired after January 19, 2025, with no dollar limit and no income limit.
- Writing a machine off in year 1 doesn’t change what it costs to run. Track its repairs and hours from day one, so the keep-or-replace call later rests on real numbers.
Guides behind this calculator
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Good to know
What is the Section 179 limit for 2026?For tax years beginning in 2026, the limit is $2,560,000, reduced dollar for dollar once Section 179 property placed in service in the year passes $4,090,000 (IRS Rev. Proc. 2025-32). SUVs are capped at $32,000.
Does equipment have to be new for Section 179?No. New and used equipment can qualify if it is new to you, used more than 50% for business, and placed in service during the tax year.
Is Section 179 better than bonus depreciation?They do different jobs. Section 179 has a dollar limit and can't exceed taxable income; bonus depreciation is 100% for qualified property acquired after January 19, 2025, with neither limit. Your accountant can say which fits your year.
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