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Section 179 lets you deduct up to $1,250,000 in equipment purchases in 2026.

Free calculator — see your first-year tax write-off and real dollar savings on a 2024, 2025, or 2026 equipment purchase. No email required. Takes 30 seconds.

Here's what Section 179 actually saves you

Real example: an owner-operator buys a $150,000 used Freightliner Cascadia in 2026. Business income is $200,000. Marginal federal rate 24%, no state tax (Utah pass-through).

Without Section 179

$7,200 saved

Standard 5-year depreciation on the truck = $30K deduction year one × 24% = $7.2K saved.

With Section 179

$36,000 saved

Full $150K deducted year one × 24% = $36K saved. $28.8K more in your pocket vs. standard depreciation.

Your numbers will differ based on cost, income, tax rate, and equipment type. Plug them into the calculator below.

Your purchase

Your numbers

Enter your equipment cost and business income to see your tax savings.

How this works

Section 179 lets a business deduct the full purchase price of qualifying equipment in the year you buy it, up to the annual cap. Above the cap, bonus depreciation kicks in (currently phasing down).

Combined effect: Section 179 first up to the limit, then bonus depreciation on the remainder. The result is your first-year deduction. Multiply by your marginal rate = real cash savings.

The fine print

  • Annual 179 limit (2026): $1,250,000 deduction, phasing out dollar-for-dollar above $3,130,000 of total equipment purchased.
  • Bonus depreciation: 60% in 2024, 40% in 2025, 20% in 2026 — phasing to 0% in 2027 unless Congress acts.
  • Qualifying equipment: most tangible business property — trucks (with weight rules), construction equipment, machinery, computers. SUVs over 6,000 lbs have a separate cap.
  • "Placed in service": the deduction goes to the year the equipment is delivered and in service, not the year you bought it. If you order in December and take delivery in January, it's a next-year deduction.
  • This is not tax advice. Talk to your CPA. State rules vary widely — some states (like CA, NJ, PA) decouple from federal 179 limits.

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