Section 179 + bonus vehicle deduction calculator
For business-use vehicles only: estimate your year-1 deduction under IRC §179 + bonus depreciation. Caps depend on GVWR class. 2026 limits.
The 3 GVWR tiers that determine your deduction
Section 179 deduction for vehicles is one of the most misunderstood tax provisions because the cap depends entirely on the vehicle's Gross Vehicle Weight Rating (GVWR) — not what you actually weighed at the scale, but the manufacturer rating on the door jamb.
| GVWR class | 2026 §179 max | Bonus depreciation |
|---|---|---|
| Passenger auto / SUV ≤ 6,000 lbs GVWR (most sedans, small SUVs) | $12,400 year 1 luxury auto cap (limit applies) | 100% bonus on basis above §179 cap (OBBBA), then MACRS |
| SUV/truck 6,001-14,000 lbs GVWR (Tahoe, Suburban, F-250, X7, GLS, Wagoneer) | $31,300 year 1 §179 cap | 100% on remaining basis (OBBBA) |
| Heavy vehicle > 14,000 lbs or qualified non-personal-use vehicle | $1,280,000 (2026 general §179 limit) | 100% on remainder (OBBBA) |
The "business use percentage" qualifier
To take §179 or bonus depreciation, the vehicle must be used more than 50% for business. Personal commuting to a regular workplace doesn't count. If business use is between 50% and 100%, you pro-rate the deduction. If business use drops below 50% in a later year ("recapture"), you reverse the previously-claimed deductions and pay tax on the recapture.
Keep a contemporaneous mileage log — IRS audits routinely target Section 179 claims, and verbal estimates don't survive review. Apps like MileIQ, Stride, or a notebook in the glove box all work. Track business miles vs total miles weekly.
Bonus depreciation is phasing out
The Tax Cuts and Jobs Act (TCJA) bonus depreciation rate stepped down 20 percentage points per year: 100% (2017-2022), 80% (2023), 60% (2024), 40% (2025). The One Big Beautiful Bill Act (OBBBA), signed July 2025, restored 100% bonus depreciation for property placed in service after Jan 19, 2025. Plan with 100% as your default for 2026 placements; toggle the historical rates if you are filing for an earlier placed-in-service year.
For full ongoing operating costs — registration, EV surcharges, vehicle property tax — see our 5-year cost of ownership calculator. For deducting the actual mileage instead (often better at lower business-use %), use the IRS standard mileage rate — which we cover at our sister site Quarterly1099 (business vehicle deductions).
Frequently asked questions
What is the Section 179 vehicle deduction limit for 2026?
Depends on Gross Vehicle Weight Rating (GVWR). Luxury autos and SUVs ≤6,000 lbs GVWR are capped at $12,400 first-year (§280F luxury auto limit). SUVs/trucks 6,001-14,000 lbs GVWR cap at $31,300 (the 2026 SUV §179 cap). Heavy vehicles >14,000 lbs GVWR can use the full general §179 limit of $1.28M.
What qualifies as 6,001+ lb GVWR?
Common qualifying SUVs and trucks: Cadillac Escalade, Chevy Tahoe/Suburban, Ford Expedition/F-250/F-350, GMC Yukon, Land Rover Range Rover, Lincoln Navigator, Mercedes G-Wagen/GLS, Porsche Cayenne, Tesla Model X. Check the manufacturer sticker on the door jamb for GVWR — not curb weight.
Do I need to use the vehicle 100% for business?
No, but more than 50% business use is required to qualify for §179 or bonus depreciation. If you use 80% for business, you take 80% of the deduction. Below 50% business use, you must use straight-line depreciation only (no acceleration).
What is bonus depreciation in 2026?
The 2017 TCJA bonus depreciation rate stepped down each year: 100% (2017-2022), 80% (2023), 60% (2024), 40% (2025). The OBBBA (signed July 2025) restored 100% bonus depreciation for property placed in service after Jan 19, 2025 — so 2026 placements get the full 100% bonus.
What is recapture if my business use drops?
If your vehicle is used less than 50% for business in a later year, you have to "recapture" previously claimed §179 and bonus depreciation — reverse the deductions and pay tax on them as ordinary income. Keep a contemporaneous mileage log to defend the original claim.