Section 179 Deduction Calculator
Estimate your 2026 Section 179 equipment write-off and tax savings, including the $2.56M cap, the $32,000 SUV limit, and 100% bonus depreciation.
Section 179 Deduction Calculator
Cost of Qualifying Property
Total purchase cost of Section 179-eligible equipment, software, and vehicles placed in service this year.
Is this a heavy SUV?
Sport utility vehicles rated 6,001 to 14,000 lbs GVWR are capped at $32,000 of Section 179 expensing. The rest may still take 100% bonus depreciation.
Business Taxable Income
Taxable income from the active conduct of the business, figured before Section 179. This limits the Section 179 deduction (it cannot create a loss).
Apply 100% Bonus Depreciation
When on, the basis remaining after the Section 179 deduction is expensed at 100% (the 2026 bonus rate under OBBBA). When off, the calculator shows the Section 179 amount only.
Your Marginal Tax Rate
Drives the estimated tax-savings figure. Not sure? Find it with the tax bracket calculator.
Estimates only, not tax or legal advice. Section 179 figures reflect 2026 (IRS Pub 946, OBBBA P.L. 119-21). Verify with a tax professional before filing.
Plan Your Whole Tax Year
Tax47 estimates your refund and handles federal plus state taxes alongside business deductions like Section 179.
How the 2026 Section 179 deduction works
Section 179 of the tax code lets a business expense the cost of qualifying equipment in the year it is placed in service, instead of depreciating it over several years. For tax years beginning in 2026, the maximum Section 179 expense deduction is $2,560,000.
That dollar limit is not unlimited for big spenders. Once total Section 179 property placed in service during the year exceeds $4,090,000, the dollar limit is reduced dollar-for-dollar by the excess. The deduction phases out completely at $6,650,000 of purchases ($2,560,000 plus the $4,090,000 threshold). Above that level, Section 179 is $0 and bonus depreciation carries the first-year write-off.
Worked example: a contractor buys $300,000 of machinery and has $250,000 of business income. Purchases are below the phase-out threshold, so the dollar limit stays at $2,560,000. Tentative Section 179 is $300,000, but the business-income limit caps the actual Section 179 deduction at $250,000. The remaining $50,000 of disallowed Section 179 carries forward, while the $0 of remaining basis (if bonus is applied first) is handled separately. The calculator above sorts this out automatically.
Section 179 vs. 100% bonus depreciation in 2026
Section 179 and bonus depreciation are two ways to accelerate deductions, and they work in a set order. Section 179 is elective and is applied first, asset by asset, up to the dollar limit. Bonus depreciation then applies to the basis that remains.
The One Big Beautiful Bill Act (P.L. 119-21) permanently restored 100% bonus depreciation for qualifying property placed in service after January 19, 2025. For 2026, bonus depreciation is 100% with no dollar cap.
The key difference is the business-income limit. Section 179 cannot exceed the taxable income from the active conduct of your business, so it cannot create or increase a loss. Bonus depreciation has no income limit and can create a loss. That is why a business with a thin income year may prefer to lean on bonus depreciation, while a profitable business might use Section 179 to fine-tune exactly how much to expense.
Vehicle and SUV limits (the $32,000 cap)
Vehicles get special treatment. For sport utility vehicles with a gross vehicle weight rating (GVWR) of 6,001 to 14,000 pounds placed in service in tax years beginning in 2026, the Section 179 expense is capped at $32,000.
That $32,000 is the Section 179 limit for the SUV, not the total first-year write-off. The basis above the cap can generally take 100% bonus depreciation in 2026, so a heavy SUV used 100% for business can often be expensed in full the first year. Business-use percentage matters: the vehicle must be used more than 50% for business, and the deductible amounts are reduced by personal use.
Toggle the heavy SUV switch in the calculator to see how the $32,000 Section 179 cap interacts with bonus depreciation on the remaining basis.
The business income limitation and carryforward
The Section 179 deduction is limited to the aggregate taxable income from the active conduct of your trade or business. It cannot create or increase a net loss. If your tentative Section 179 amount is larger than your business income, the excess is disallowed for the current year.
The disallowed amount is not lost. It carries forward indefinitely to future tax years, where it is again subject to that year's business-income limit. Bonus depreciation and regular MACRS depreciation are not subject to this income limit, so in a loss year the Section 179 piece may carry forward while bonus depreciation still applies.
This calculator estimates your 2026 Section 179 deduction, bonus depreciation, and tax savings using current IRS figures. It is for planning only and is not tax or legal advice. Confirm your numbers with a tax professional before filing, and download Tax47 to estimate your full federal and state tax picture for the year.
Frequently Asked Questions
Common questions about section 179 deduction calculator
What is the Section 179 deduction limit for 2026?
For tax years beginning in 2026, the maximum Section 179 expense deduction is $2,560,000. That dollar limit is reduced dollar-for-dollar once total Section 179 property placed in service during the year exceeds $4,090,000, and it phases out completely at $6,650,000 of purchases ($2,560,000 plus $4,090,000).
What is the difference between Section 179 and bonus depreciation?
Section 179 is an elective, per-asset expensing election with an annual dollar cap and a business-income limit, so it cannot create or increase a loss. In 2026, 100% bonus depreciation has no dollar cap and no income limit and can create a loss. A common approach is to elect Section 179 first, then apply 100% bonus depreciation to the remaining basis. See the difference between marginal and effective rates with the tax bracket calculator at /tools/tax-bracket-calculator/.
How much can I write off for a heavy SUV under Section 179 in 2026?
For sport utility vehicles with a gross vehicle weight rating of 6,001 to 14,000 pounds placed in service in tax years beginning in 2026, the Section 179 expense is capped at $32,000. The remaining basis above that cap may still qualify for 100% bonus depreciation in 2026, so the total first-year write-off can be much larger than $32,000.
Can Section 179 create a business loss?
No. The Section 179 deduction is limited to the aggregate taxable income from the active conduct of your trade or business, so it cannot create or increase a net operating loss. Any amount disallowed by the income limit carries forward indefinitely to future years. Bonus depreciation, by contrast, is not income-limited and can create a loss.
Is bonus depreciation still 100% in 2026?
Yes. The One Big Beautiful Bill Act (P.L. 119-21) permanently restored 100% bonus depreciation for qualifying property placed in service after January 19, 2025. For 2026, bonus depreciation is 100% with no dollar cap, which is why the basis remaining after a Section 179 election can be expensed in full.
What property qualifies for Section 179?
New or used tangible business equipment, off-the-shelf software, qualifying business vehicles, and certain improvements to nonresidential real property generally qualify. The property must be placed in service during the tax year and used more than 50% for business. Pairing equipment write-offs with the QBI deduction can compound the savings; estimate that at /tools/qbi-deduction-calculator/.
Do I have to use Section 179 and bonus depreciation together?
No. Section 179 is elective and is applied first, then bonus depreciation applies to the basis that remains. You can use one, the other, or both. Many businesses combine them to expense 100% of a purchase in the first year while using Section 179 selectively to manage which assets and how much to expense.
What happens to the Section 179 deduction I cannot use this year?
The amount disallowed by the business-income limit carries forward to future tax years. In the carryforward year it is still subject to that year's business-income limit. If you are a Schedule C filer planning purchases, the self-employment tax calculator at /tools/self-employment-tax-calculator/ can help you see the full picture of your business taxes.