---
title: "MACRS Depreciation Calculator (2026) | Ledgerbrook"
source: https://ledgerbrook.com/tools/macrs-depreciation-calculator/
description: "MACRS, Section 179 and bonus depreciation calculator for 2026: the full schedule, IRS rate tables, vehicle caps and the journal entry to post."
---

Free calculator

# MACRS Depreciation Calculator

## How does MACRS depreciation work?

MACRS spreads an asset's cost over a 3 to 39 year recovery period set by IRS Publication 946. A $10,000 computer is 5-year property: it deducts **20.00%**, or $2,000, in year one and 32.00% in year two, unless Section 179 or 100% bonus depreciation takes the whole cost in the first year.

1\. Cost of the asset

2\. Property class3-year: tractor units for over-the-road use, some manufacturing tools5-year: cars, light trucks7-year: office furniture, fixtures10-year: vessels, barges15-year: parking lots, fences20-year: farm buildings, municipal sewers27.5-year: residential rental buildings39-year: nonresidential real property

3\. Bonus depreciationNone100%, bought after Jan 19, 202520%, bought before Jan 20, 2025

3\. Month placed in serviceJanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember

Advanced: Section 179, vehicles, convention

Section 179 amount

Business income before 179

VehicleNot a vehicleCar, or truck or van up to 6,000 lbSUV over 6,000 lbTruck or van over 6,000 lb

Business use, %

ConventionHalf-yearMid-quarter

Quarter placed in serviceQuarter 1Quarter 2Quarter 3Quarter 4

Section 179 is capped at $2,560,000 for 2026, reduced above $4,090,000 of purchases, at $32,000 for SUVs over 6,000 lb, and at the business's taxable income. Cars and light trucks are capped at $20,300 in the first year with bonus, or $12,300 without, scaled by business use. A vehicle used 50% or less for business gets straight line with no 179 or bonus. Buildings get neither; roofs, HVAC and security systems on nonresidential buildings can take Section 179, so ask your preparer. More in [Section 179 for vehicles](/blog/section-179-vehicles/).

First-year deduction

$2,000

Section 179

$0

Bonus depreciation

$0

Left for MACRS

$10,000

Year 1 journal entry

| | |
| --- | --- |
| Dr Depreciation Expense | |
| Cr Accumulated Depreciation | |

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Depreciation schedule

| Year | MACRS rate | Depreciation | Accumulated | Book value |
| --- | --- | --- | --- | --- |

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IRS tables

## MACRS percentage table, half-year convention

The yearly rates for 3- to 20-year property, matching Table A-1 in [IRS Publication 946](https://www.irs.gov/publications/p946). 3- to 10-year property uses 200% declining balance, 15- and 20-year property 150%, each switching to straight line.

| Year | 3-year | 5-year | 7-year | 10-year | 15-year | 20-year |
| --- | --- | --- | --- | --- | --- | --- |
| 1 | 33.33% | 20.00% | 14.29% | 10.00% | 5.00% | 3.75% |
| 2 | 44.44% | 32.00% | 24.49% | 18.00% | 9.50% | 7.22% |
| 3 | 14.81% | 19.20% | 17.49% | 14.40% | 8.55% | 6.68% |
| 4 | 7.41% | 11.52% | 12.49% | 11.52% | 7.70% | 6.18% |
| 5 | | 11.52% | 8.92% | 9.22% | 6.93% | 5.71% |
| 6 | | 5.76% | 8.92% | 7.37% | 6.23% | 5.28% |
| 7 | | | 8.92% | 6.55% | 5.90% | 4.89% |
| 8 | | | 4.46% | 6.55% | 5.90% | 4.52% |
| 9 | | | | 6.55% | 5.90% | 4.46% |
| 10 | | | | 6.55% | 5.90% | 4.46% |
| 11 | | | | 3.28% | 5.90% | 4.46% |
| 12 | | | | | 5.90% | 4.46% |
| 13 | | | | | 5.90% | 4.46% |
| 14 | | | | | 5.90% | 4.46% |
| 15 | | | | | 5.90% | 4.46% |
| 16 | | | | | 2.95% | 4.46% |
| 17 | | | | | | 4.46% |
| 18 | | | | | | 4.46% |
| 19 | | | | | | 4.46% |
| 20 | | | | | | 4.46% |
| 21 | | | | | | 2.23% |

Recovery periods

## Which property class is my asset?

| Class | Common assets | Method |
| --- | --- | --- |
| 3-year | Tractor units for over-the-road use, some manufacturing tools | 200% declining balance |
| 5-year | Cars, light trucks, computers, office machinery | 200% declining balance |
| 7-year | Office furniture, fixtures, most equipment | 200% declining balance |
| 10-year | Vessels, barges, single-purpose farm structures | 200% declining balance |
| 15-year | Parking lots, fences, sidewalks and other land improvements | 150% declining balance |
| 20-year | Farm buildings, municipal sewers | 150% declining balance |
| 27.5-year | Residential rental buildings | Straight line, mid-month |
| 39-year | Nonresidential real property | Straight line, mid-month |

The calculator uses the general depreciation system. Qualified improvement property is 15-year but straight line, which this calculator does not model. Listed property used 50% or less for business, and some farm and tax-exempt use property, must use the alternative system instead. Figures are estimates, not tax advice.

Frequently asked

## MACRS questions

Each year's entry belongs in the monthly close; see the [month-end close checklist](/tools/month-end-close-checklist/). To keep every asset on one schedule with a Form 4562 summary, use the [depreciation schedule template](/templates/depreciation-schedule-template/).

### How do you calculate MACRS depreciation?

Find the asset's recovery period in IRS Publication 946 (5 years for computers and vehicles, 7 for furniture and most equipment), take off any Section 179 and bonus depreciation, then multiply what is left by that year's percentage from the MACRS table for the convention that applies. The calculator above does all three steps.

### What is the 5-year MACRS depreciation percentage?

Under the half-year convention: 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, 5.76% over six tax years. The sixth year exists because the first year counts as half a year.

### What is the MACRS rate for 7-year property?

Under the half-year convention: 14.29%, 24.49%, 17.49%, 12.49%, 8.92%, 8.92%, 8.92%, 4.46% over eight tax years.

### When does the mid-quarter convention apply?

When more than 40% of the depreciable basis of all property placed in service during the year went into service in the last three months of the tax year. Real property is left out of that test and always uses mid-month.

### How do I calculate my Section 179 deduction?

Start with the cost times the share of business use, which has to be over 50% for vehicles and other listed property. The 2026 cap is $2,560,000, cut dollar for dollar once the year's Section 179 purchases pass $4,090,000, and $32,000 for an SUV over 6,000 lb. The deduction also cannot exceed the year's taxable income from active business; the rest carries forward. Enter the amount and your business income under Advanced; the calculator applies the dollar, SUV and income limits to the asset and depreciates what is left. It does not apply the phase-out, which turns on the whole year's purchases.

### How do you calculate bonus depreciation?

Multiply the business-use cost, less any Section 179, by the bonus rate: 100% for property acquired after January 19, 2025, or 20% for property acquired before January 20, 2025 and placed in service in 2026. Whatever bonus leaves is depreciated under MACRS from the first year. Cars and light trucks are held to their first-year cap instead.

### Is it better to take Section 179 or bonus depreciation?

For most equipment the first-year deduction is the same. Section 179 is capped at $2,560,000 for 2026 and cannot create a loss; bonus depreciation has no cap and can. The full comparison, including states that do not follow bonus, is in [Section 179 vs bonus depreciation](/blog/section-179-vs-bonus-depreciation/).

### How do I calculate MACRS in Excel?

Multiply what is left after Section 179 and bonus by the year's percentage from the table on this page, or use VDB. For half-year property, =VDB(cost, 0, life, MAX(0, year-1.5), MIN(life, year-0.5), 2) returns the year's depreciation; use 1.5 instead of 2 for 15- and 20-year property.

### How is depreciation recorded in QuickBooks?

As a journal entry debiting Depreciation Expense and crediting Accumulated Depreciation, usually monthly at one twelfth of the year's figure. [The depreciation journal entry](/blog/journal-entry-for-depreciation/) walks through it, and [disposal of an asset](/blog/journal-entry-for-disposal-of-asset/) covers the entry when it is sold.

Updated October 29, 2026