Section 179 Equipment Savings Calculator
2026 Section 179 savings estimator • U.S. businesses
See what your equipment could cost after tax savings.
Explore the potential first-year federal tax benefit of qualifying equipment. Adjust the numbers to fit your shop, then discuss the estimate with your tax adviser.
21% is an illustrative starting point, not a recommended rate. Your business structure and tax situation determine the applicable rate.
Adjust eligibility and annual limits
A deduction reduces taxable income. It is not a dollar-for-dollar tax credit, refund or reduction in the invoice or loan balance.
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2026 rules and calculation assumptions
For tax years beginning in 2026, the Section 179 limit is $2,560,000. It reduces dollar for dollar when total qualifying property placed in service exceeds $4,090,000. This estimate applies the remaining annual limit and any income capacity you enter. Business use must exceed 50%.
For a calendar-year business seeking a 2026 deduction, equipment must be placed in service by December 31, 2026. Purchasing or financing alone is not enough. Qualifying financed equipment may be eligible; financing interest and payment timing are not modeled.
Assumes qualifying equipment, an eligible taxpayer and a valid election. Excludes state taxes, bonus depreciation, regular depreciation, carryforwards, recapture and other tax interactions. After-tax cost equals purchase price less estimated federal tax savings, not a financing quote. Consult your tax adviser.
Source: IRS Revenue Procedure 2025-32, section 4.24. Limits verified September 15, 2026.