Section 179 Calculator

2026 rules

Calculate how much equipment cost you can deduct this year under Section 179.

Your numbers

Cost of the equipment

Total section 179 property placed in service in 2026

Business taxable income (limits the deduction)

Your combined marginal tax rate

Heavy SUV (6,000-14,000 lb)

Result

Section 179 deduction this year$80,000

2026 limit$2,560,000
Phase-out above $4,090,000 of purchases$2,560,000
Eligible cost$80,000
Deduction (capped at business income)$80,000
Tax saved at your rate$25,600

100% bonus depreciation also applies to qualifying property acquired after Jan 19, 2025, and is not limited by business income.

How it works

For 2026 you can expense up to $2,560,000 of qualifying equipment and software. The limit drops dollar for dollar once purchases pass $4,090,000. SUVs over 6,000 pounds are capped at $32,000.

The deduction can't exceed your business's taxable income; any excess carries forward. Bonus depreciation, which is back at 100% for property acquired after January 19, 2025, has no income limit.

2026 figures: IRS Rev. Proc. 2025-32 (2026 inflation adjustments); IRS Notice 2025-67 (2026 retirement plan limits); SSA 2026 COLA fact sheet; IRS Notice 2026-10 and Announcement 2026-11 (mileage).

Questions

Section 179 or bonus depreciation?

Both can expense the full cost. Section 179 lets you choose asset by asset and is limited by income; bonus applies to whole classes of property and can create a loss.

Does used equipment qualify?

Yes, if it's new to you and used more than 50% for business.