MACRS Depreciation Calculator

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.

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.

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 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.

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.

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.

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.

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.

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 walks through it, and disposal of an asset covers the entry when it is sold.