Depreciation Calculator
Calculate business asset depreciation using MACRS (Modified Accelerated Cost Recovery System). Maximize your tax deductions for equipment, vehicles, and property.
Purchase price or basis
Computers, office equipment, cars, light trucks, construction assets
MACRS Details
Total Depreciation
$50,000
over 5 years
Year-by-Year Breakdown
20.00% rate
32.00% rate
19.20% rate
11.52% rate
11.52% rate
5.76% rate
Original Basis
$50,000
Remaining Value
$0
Section 179 & Bonus Depreciation
You may be able to deduct the full cost immediately using Section 179 (up to $1.22M in 2025) or Bonus Depreciation. Consult your tax advisor for eligibility.
What This Calculator Includes
MACRS Method
IRS-approved depreciation
Multiple Property Classes
3, 5, 7, and 15-year assets
Year-by-Year Schedule
Complete depreciation breakdown
Tax Deductions
Maximize business write-offs
Why Use This Calculator?
Plan Tax Deductions
Know exactly how much you can deduct each year for business assets
IRS Compliant
Uses official MACRS rates and methods approved by the IRS
Asset Planning
Make informed decisions about equipment purchases and timing
Official References
This calculator uses official IRS depreciation methods:
- IRS Publication 946: How to Depreciate Property
Complete guide to MACRS and depreciation methods
- IRS Form 4562: Depreciation and Amortization
Form used to claim depreciation deductions
- Section 179 Deduction
Immediate expensing option for qualifying property
This calculator provides MACRS depreciation estimates. Your actual deductions may vary based on asset type, business use percentage, and tax law changes. Consult a tax professional for personalized advice.
Frequently Asked Questions
How does MACRS depreciation work?
MACRS assigns each business asset to a property class (3, 5, 7, or 15 years) and applies a fixed depreciation rate each year. It uses the 200% declining balance method, which front-loads larger deductions in the early years.
What is the MACRS depreciation table for a 5-year vehicle?
The rates are: Year 1 at 20%, Year 2 at 32%, Year 3 at 19.2%, Year 4 at 11.52%, Year 5 at 11.52%, and Year 6 at 5.76%. Most of the cost is deducted in the first three years. Note that passenger vehicles have additional IRS caps that may limit annual deductions.
What is the Section 179 deduction for 2026?
Section 179 lets you immediately expense up to $1,320,000 of qualifying property (equipment, vehicles, software) instead of depreciating it over multiple years. The deduction phases out when total purchases exceed the IRS spending cap.
What is the bonus depreciation rate for 2026?
Bonus depreciation for 2026 is 60%, down from 80% in 2023 and 100% in 2022. You can deduct 60% of the cost of qualifying new and used assets in year one, then depreciate the remaining 40% on the standard MACRS schedule.
Where can I find IRS depreciation tables?
IRS Publication 946, "How To Depreciate Property," has the complete MACRS percentage tables for all property classes under both GDS and ADS.
Should I use Section 179, bonus depreciation, or regular MACRS?
Section 179 lets you expense the full cost immediately but is capped at your taxable income. Bonus depreciation (60% in 2026) has no income limit and can create a net operating loss. Standard MACRS spreads deductions over time, which is better if you expect higher income in future years. Many businesses combine all three.