Section 179 Calculator for 2026
Estimate your Section 179 tax deduction and net equipment cost in seconds. Enter your equipment purchase and see exactly how much your business could save on taxes this year.
Section 179 Calculator — Tax Year 2026
2026 deduction limit: $1,220,000 · Phase-out begins at $3,050,000 · Bonus depreciation: 40%
This calculator provides estimates for informational purposes only and does not constitute tax advice. Actual deductions depend on taxable income, entity type, and IRS rules. Consult a qualified CPA or tax advisor before making financial decisions. 2026 figures are based on projected IRS inflation adjustments.
How the 2026 Section 179 Calculator works
This Section 179 calculator uses the IRS's projected 2026 deduction limit of $1,220,000 and phase-out threshold of $3,050,000 to estimate how much of your equipment purchase qualifies for an immediate first-year deduction. It also includes the 40% bonus depreciation rate that applies in 2026 as the bonus phase-down continues.
What is the 2026 Section 179 deduction limit?
According to IRS Publication 946, the projected 2026 Section 179 deduction limit is $1,220,000. This means businesses can deduct up to $1,220,000 of qualifying equipment and property placed in service during 2026. The deduction begins to phase out dollar-for-dollar once total property placed in service exceeds $3,050,000.
How does bonus depreciation work in 2026?
In 2026, bonus depreciation is 40% — down from 60% in 2024 and 80% in 2023, continuing the phase-down schedule set by the Tax Cuts and Jobs Act. This means after you take your Section 179 deduction, you can deduct 40% of the remaining basis in the first year. The Section 179 calculator above applies this automatically.
Can I finance equipment and still claim Section 179?
Yes — this is one of the most powerful advantages of equipment financing. When you finance equipment, you can typically deduct the full purchase price under Section 179 in the year the equipment is placed in service, even though you haven't paid the full amount. You get the full deduction now while spreading payments over time. See our full 2026 Section 179 guide for details on how financing interacts with the deduction.
What equipment qualifies for Section 179?
According to the NFIB Section 179 guide, most tangible business equipment qualifies — including medical and diagnostic equipment, construction and heavy equipment, trucks and fleet vehicles, manufacturing machinery, technology and IT infrastructure, and office equipment. The equipment must be used more than 50% for business purposes and placed in service during the tax year. Explore our financing options for medical equipment, construction equipment, and trucking and fleet vehicles.