2026 MACRS Depreciation Calculator
Calculate depreciation deductions using IRS MACRS rules for your business equipment. Choose asset class, method, and convention — get your full yearly schedule instantly.
Asset Details
Depreciation Summary
Yearly Depreciation Schedule
| Year | Rate | Depreciation | Book Value |
|---|---|---|---|
| Bonus Depreciation | 60% | $0 | $25,000 |
| Year 1 | 20.00% | $5,000 | $20,000 |
| Year 2 | 32.00% | $8,000 | $12,000 |
| Year 3 | 19.20% | $4,800 | $7,200 |
| Year 4 | 11.52% | $2,880 | $4,320 |
| Year 5 | 11.52% | $2,880 | $1,440 |
| Year 6 | 5.76% | $1,440 | $0 |
* Based on IRS Pub 946 MACRS tables. Figures are for educational purposes only. Consult a tax professional for personalized guidance.
MACRS Rules for Self-Employed Workers
GDS vs. ADS
GDS (200% declining balance) front-loads deductions, giving you bigger tax savings in the early years. ADS uses straight-line over the full recovery period, resulting in equal annual deductions but slower recovery of costs.
Bonus Depreciation 2026
For 2026, bonus depreciation is 60% of the cost of qualified property. This is phasing down (80% in 2024, 60% in 2026, 40% in 2027, 0% by 2030). It applies to new and used property for self-employed workers.
Section 179 Immediate Expensing
Section 179 lets you expense up to $1,160,000 (2026) of qualified property in the year it's placed in service. This is especially valuable for small businesses and self-employed workers with modest equipment purchases.
Related Tools
Use our Tax Deduction Finder to discover all deductions you may be missing as a self-employed worker. Combine MACRS depreciation with other deductions for maximum tax savings.
MACRS Depreciation FAQs
MACRS (Modified Accelerated Cost Recovery System) is the IRS system for depreciating business assets placed in service after 1986. It accelerates depreciation deductions in the early years of an asset's life, allowing businesses to recover costs faster.
GDS (General Depreciation System) uses the 200% declining balance method and provides larger deductions in early years. ADS (Alternative Depreciation System) uses straight-line depreciation over a longer period. Most businesses qualify for GDS. ADS is required for certain property types or if you elect out of bonus depreciation.
Common classes include: 3-year (certain livestock, race horses), 5-year (cars, light trucks, computers, machinery), 7-year (furniture, fixtures, office equipment, most industrial machinery), 10-year (vessels, barges, tugs), 15-year (land improvements, retail improvements), 20-year (farm buildings, municipal sewers), and 39-year (non-residential real property).
The half-year convention assumes assets are placed in service (and disposed of) in the middle of the tax year. This means you get 6 months of depreciation in the first year regardless of when the asset was actually placed in service during the year.
Yes. You can use Section 179 (immediate expensing up to $1,160,000 in 2026) and/or bonus depreciation (60% in 2026) before applying MACRS to the remaining basis. Use our Tax Deduction Finder to discover all available deductions.