Section 179 and MACRS Depreciation Calculator

How to do it

1. 1
   Step 1: Open Section 179 and MACRS Depreciation Calculator and add your input

   Type your numbers or text, add your file, or pick the options you need. Nothing is uploaded: everything stays in your browser.

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   Step 2: What Section 179 and MACRS Depreciation Calculator does

   Compare a Section 179 deduction, bonus depreciation and MACRS for equipment you buy.

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   Step 3: Read the result and compare

   The result appears at once. Change one value to see how the answer moves, then keep the figure that fits your case.

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   Step 4: Copy or save it

   Copy the result or download it. For an important decision, confirm it with the official source or an adviser.

About this tool

Enter the cost, the business-use share, the property class, your total purchases for the year, your business income and your tax rate. The calculator applies the Section 179 limit and its phase-out, then bonus depreciation and the half-year MACRS table, and shows the deduction and tax saving for every year.

The limits

Section 179 allows $2,560,000 in 2026 ($2,500,000 in 2025) of equipment to be expensed. The limit is reduced dollar for dollar once total purchases pass $4,090,000 ($4,000,000 in 2025). The deduction cannot exceed your business income.

Bonus depreciation

Bonus depreciation applies to what is left after Section 179. It is 100% for property acquired after January 19, 2025, and 40% for property acquired before that date and placed in service in 2025. The tool lets you pick 100%, 40% or none.

MACRS

What remains is depreciated by the half-year table for 3, 5, 7, 10 or 15-year property. The mid-quarter convention, listed-property rules, luxury auto limits, state decoupling and recapture are not modeled.

Worked example

A $80,000 seven-year machine used 100% for business, no Section 179 and no bonus: year 1 is 14.29% ($11,432), saving $2,744 at a 24% rate, and the rest follows the table over eight tax years. Turn on Section 179 with $150,000 of business income and the whole $80,000 is deducted in year 1, saving $19,200.

Tips for best results

Check every box before you rely on a result, because one wrong digit changes the whole answer. Use the exact figures from your payslip, bill, certificate or contract, and keep a note of the date you calculated. Rates, thresholds and rules change from time to time, so for tax, fees and legal matters treat the output as an estimate and confirm with the official source named on this page. You can run as many scenarios as you like; nothing is saved or sent, and refreshing the page clears the boxes.