Free Section 179 Calculator for 2026 Savings
Use this free Section 179 calculator to find your exact tax deduction, bonus depreciation, and cash savings in seconds—then build your real plan.
Calculations assume Section 179 cap of $1,160,000 with phase-out beginning at $2,890,000. Under current TCJA provisions for calendar year 2026, bonus depreciation is configured at a 20% phase-down allowance rate.
Frequently Asked Questions
Get instant, accurate Section 179 results. Our calculator reveals your true equipment cost after deductions—perfect for smart savings planning.
A: You can deduct up to $1,160,000 in qualifying equipment costs for the 2026 tax year. The deduction starts to phase out dollar-for-dollar once total equipment purchases exceed $2,890,000. Run the numbers above to see your exact figure instantly.
A: The 2026 Section 179 limit sits at $1,160,000. Spend above the $2,890,000 threshold and your deduction value shrinks gradually, not all at once. Stay under the cap to capture the full write-off.
A: Bonus depreciation stacks on top of Section 179, not instead of it. For 2026, the bonus rate sits at 20%, applied after you exhaust your Section 179 limit. Combined, the two methods can push your first-year deduction close to the full purchase price.
A: Section 179 swaps a slow, multi-year depreciation schedule for one immediate tax break. A $250,000 equipment purchase, for example, can generate over $52,000 in cash savings in year one at a 21% tax rate. That cash stays in your business instead of going to the IRS.
A: Section 179 deducts the full cost in the same year you place equipment in service. There's no multi-year wait. You claim it once, immediately, instead of spreading it across 5 or 7 years like standard depreciation.
A: Yes. The deduction lowers your effective cost by your tax savings amount. A $250,000 purchase can drop to roughly $197,500 in true out-of-pocket cost, depending on your bracket.
A: Both matter, but order matters too. The calculator applies your Section 179 deduction first, then layers bonus depreciation onto any remaining basis. This sequence usually delivers the largest possible first-year deduction.
A: Yes. Business owners pursuing FIRE often redirect first-year tax savings into retirement accounts or reinvest in growth. A $50,000+ deduction frees up real cash to accelerate your savings rate every year you qualify.