Commercial

Section 179 Vehicle Depreciation Calculator

Calculate Section 179 vehicle depreciation deduction for business vehicles. See limits for SUVs, trucks, and passenger cars in 2026.

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Quick Take

This calculator gives you real-time estimates based on standard financial formulas. Modify any input and results update instantly — no calculate button needed.

Primary Result

$0

Section 179 Deduction

Bonus Depreciation (40%)
$0
Remaining × 40%
Total First-Year Deduction
$0
Section 179 + Bonus
Estimated Tax Savings
$0
Deduction × Tax bracket
Effective After-Tax Cost
$0
Cost - Tax savings
Disclaimer: Results are educational estimates only and do not constitute professional financial advice. Actual loan terms, rates, and costs may vary.
What This Calculator Does

Calculate Section 179 vehicle depreciation deduction for business vehicles. See limits for SUVs, trucks, and passenger cars in 2026.

How the Calculation Works
Section 179 Deduction:Up to vehicle limit
Bonus Depreciation (40%):Remaining × 40%
Total First-Year Deduction:Section 179 + Bonus
Estimated Tax Savings:Deduction × Tax bracket
Effective After-Tax Cost:Cost - Tax savings
Who Should Use This Tool

This calculator is designed for anyone looking to understand the financial implications of commercial decisions. Whether you're a first-time buyer, comparing options, or planning for the future, these estimates help you make informed choices.

Important Considerations

Remember that actual terms, rates, and costs will vary by lender, your credit score, and current market conditions. These calculators provide educational estimates only and do not constitute professional financial advice. Always compare multiple offers and consult a financial professional before making decisions.

Frequently Asked Questions

What is the Section 179 limit for vehicles in 2026?+
Passenger cars: $11,160 (first-year, with bonus $19,526). SUVs/trucks (6,000–14,000 lbs GVWR): $31,300. Heavy vehicles (>14,000 lbs): full $25,000 Section 179 + bonus depreciation.
Which vehicles qualify for full Section 179?+
Vehicles with GVWR >6,000 lbs and designed for >9 passengers, cargo area, or off-road use. Most full-size SUVs, pickups, and vans qualify. Sedans and compact SUVs don't.
What is bonus depreciation in 2026?+
40% in 2026 (phasing down 20%/year from 100% in 2022). Applies to the remaining basis after Section 179. Goes to 20% in 2027 and 0% in 2028.
What's the business use requirement?+
Vehicle must be used >50% for business. Deduction is prorated by business use %. If business use drops below 50% later, you must recapture (repay) the deduction.
Should I use Section 179 or bonus depreciation?+
Section 179: you choose which assets to expense, capped per asset. Bonus: applies automatically to all qualifying assets. Many businesses use Section 179 first, then bonus on the remainder.

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