Calculate Your Section 179 Deduction Before You Buy
Run the numbers with our Section 179 tax deduction calculator. Get instant 2026 bonus depreciation and equipment savings results based on current IRS thresholds.
Calculate your business tax savings, bonus depreciation, and net equipment cost for the 2026 tax year.
This calculator is an estimation tool based on standard 2026 IRS Section 179 thresholds (Deduction limit: $1,160,000; Phase-out threshold: $2,890,000). Bonus depreciation is simulated at the phase-down rate of 0% for 2026 unless modified by extensions. Consult a certified CPA to analyze your specific corporate profile.
Frequently Asked Questions
Stop overpaying on equipment. Our 2026 Section 179 calculator shows your exact cash tax savings instantly — fuel your business reinvestment and savings goals.
A: For the 2026 tax year, the Section 179 deduction limit is $1,160,000. This means businesses can deduct the full purchase price of qualifying equipment up to that amount in the year it's placed in service, instead of depreciating it over several years.
A: You can deduct up to $1,160,000 in equipment costs, as long as total purchases stay under the $2,890,000 phase-out threshold. Spend above that threshold and your deduction shrinks dollar-for-dollar. Use the calculator to see your exact deduction based on your actual equipment cost.
A: The phase-out threshold is $2,890,000. Once total equipment purchases exceed this amount, the Section 179 deduction limit reduces dollar-for-dollar. Businesses spending above $4,050,000 typically lose the deduction entirely.
A: - Section 179 lets you choose which assets to deduct, up to annual limits, and requires positive taxable income.
- Bonus depreciation applies automatically to qualifying assets and has no annual dollar cap, but the 2026 bonus depreciation rate sits at the phase-down level, meaning it contributes less than in prior years unless extended by new legislation.
Most businesses use both together — Section 179 first, then bonus depreciation on remaining costs.
A: Your effective equipment cost drops significantly after applying the deduction. For example, a $500,000 purchase at a 21% federal tax rate generates $105,000 in tax savings, lowering your real out-of-pocket cost to $395,000. The calculator runs this exact math instantly based on your numbers.
A: Yes. Unlike older depreciation rules, Section 179 applies to both new and used equipment, as long as the equipment is new to your business and placed in service during the 2026 tax year.
A: No. Cash savings scale directly with your federal tax rate. A business at the 21% standard corporate rate sees different savings than a pass-through entity taxed at individual rates. Select your actual tax rate in the calculator to get an accurate, personalized savings figure rather than a generic estimate.
A: Yes. This calculator gives a fast estimate based on standard 2026 IRS thresholds, but your specific corporate structure, income limits, and state tax rules can affect your actual deduction value. A certified CPA confirms the final numbers before you file.