Section 179 Deduction Calculator 2026
Calculate your 2026 Section 179 deduction for business equipment. See your tax savings and the net after-tax cost of the equipment.
$
%
For mixed personal/business use (e.g. vehicle), enter % business use
$
%
$24,000
Tax Savings This Year
Net equipment cost after deductions
$75,000
Section 179 Deduction
$0
Bonus Depreciation
$51,000
Net Equipment Cost
Equipment Cost$75,000
Section 179 Deduction$75,000
Bonus Depreciation (40%)$0
Total First-Year Write-Off$75,000
Tax Savings$24,000
Net After-Tax Equipment Cost$51,000
2026 Section 179 Key Numbers
Deduction limit: $1,220,000 | Phase-out threshold: $3,050,000 | Bonus depreciation: 40%
Section 179 is one of the most powerful tax tools for small businesses. Rather than depreciating equipment over 5-7 years, you deduct the full cost in year one — dramatically reducing your tax bill and improving cash flow in the year of purchase.
Key Restrictions to Know
- Deduction cannot exceed business taxable income (unused amount carries forward)
- Must be placed in service during the tax year — ordered but not delivered doesn't count
- Real property (land, buildings) does not qualify for Section 179 directly, but certain improvements do
- Listed property (vehicles, cameras, etc.) used under 50% for business reverts to MACRS depreciation