Section 179 Vehicle Tax Calculator
Calculate your first-year business tax write-offs for heavy SUVs and trucks under Section 179 and Bonus Depreciation.
The percentage of miles driven for business. Must be above 50% to qualify for Section 179 or Bonus Depreciation.
Fully electric commercial vehicles under 14k lbs qualify for the Section 45W Commercial Clean Vehicle tax credit up to $7,500.
What is the Section 179 Vehicle Tax Calculator?
The Section 179 Vehicle Tax Calculator helps small business owners, self-employed contractors, and LLC operators estimate their first-year tax savings when purchasing a vehicle for business use. Under U.S. tax code, vehicles with a Gross Vehicle Weight Rating (GVWR) between 6,000 and 14,000 lbs (such as heavy SUVs, trucks, and vans) qualify for accelerated depreciation. This calculator models Section 179 allowances, 20% Bonus Depreciation (2026 rate), regular MACRS depreciation, and the Section 45W Commercial Clean Vehicle Credit (EV credit) to show your true net vehicle cost.
How Does the Section 179 Vehicle Tax Calculator Work?
1. Enter Purchase Price â The total cost of the vehicle (including sales tax and delivery fees).
2. Select Vehicle Weight (GVWR) â Choose from Passenger Cars (Under 6k lbs), Heavy SUVs/Trucks (6k-14k lbs), or Large Commercial Vehicles (Over 14k lbs).
3. Set Business Use (%) â Enter the percentage of miles the vehicle is driven for business (must be >50% to qualify for Section 179).
4. Select Fuel Type â Identify if the vehicle is Gas/Hybrid or a fully Electric/PHEV qualifying for the Commercial Clean Vehicle tax credit.
5. Set Marginal Tax Bracket â Enter your combined Federal and State tax bracket.
6. Analyze Net Cost & Savings â Review your total first-year write-off, tax savings, and net out-of-pocket cost.
Formula & Calculation Method
Depreciation Rules:
If Business Use % ⤠50%, the vehicle does not qualify for Section 179 or Bonus Depreciation. It must use 5-year straight-line depreciation (10% first year under half-year convention).
If Business Use % > 50%:
* Passenger Auto (Under 6,000 lbs): Capped at a maximum first-year total depreciation of $21,000 (indexed for 2026).
* Heavy SUVs/Trucks (6,000â14,000 lbs): Section 179 is capped at $32,000 (indexed for 2026). Any remaining cost basis qualifies for 20% Bonus Depreciation (2026 rate) and first-year MACRS 5-Year Depreciation (20%).
* Large Commercial (Over 14,000 lbs): Full Section 179 write-off up to 100% of the business cost.
Tax Savings & Credits:
First-Year Tax Savings = Total First-Year Depreciation à Marginal Tax Bracket
Section 45W Commercial EV Credit = 30% of business cost (fully electric) capped at $7,500
Net Vehicle Cost = Purchase Price - Tax Savings - EV Tax Credit
Example Calculation
Example: Heavy SUV (6k-14k lbs) purchased for $70,000 at 100% business use, 35% tax bracket, Gas engine.
- Business Cost basis = $70,000
- Section 179 Deduction = $32,000 (standard SUV cap)
- Remaining Basis = $70,000 - $32,000 = $38,000
- 20% Bonus Depreciation = $38,000 Ã 20% = $7,600
- Remaining MACRS Basis = $38,000 - $7,600 = $30,400
- 5-Year MACRS First Year (20%) = $30,400 Ã 20% = $6,080
- Total First-Year Depreciation: $32,000 + $7,600 + $6,080 = $45,680
- First-Year Tax Savings: $45,680 Ã 35% = $15,988
- Net Vehicle Cost: $70,000 - $15,988 = $54,012
Frequently Asked Questions
**Depreciation Rules:** If Business Use % ⤠50%, the vehicle does not qualify for Section 179 or Bonus Depreciation. It must use 5-year straight-line depreciation (10% first year under half-year convention). If Business Use % > 50%: * **Passenger Auto (Under 6,000 lbs):** Capped at a maximum first-year total depreciation of **$21,000** (indexed for 2026). * **Heavy SUVs/Trucks (6,000â14,000 lbs):** Section 179 is capped at **$32,000** (indexed for 2026). Any remaining cost basis qualifies for **20% Bonus Depreciation** (2026 rate) and first-year **MACRS 5-Year Depreciation (20%)**. * **Large Commercial (Over 14,000 lbs):** Full Section 179 write-off up to 100% of the business cost. **Tax Savings & Credits:** First-Year Tax Savings = Total First-Year Depreciation à Marginal Tax Bracket Section 45W Commercial EV Credit = 30% of business cost (fully electric) capped at $7,500 Net Vehicle Cost = Purchase Price - Tax Savings - EV Tax Credit
Disclaimer: This tool is provided for informational and calculation purposes. Output values are estimates based on standard user inputs.