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MACRS depreciation calculator
Pick the property class and convention, add any section 179 deduction or bonus depreciation, and get each year's tax depreciation from the IRS percentage tables, with the table and rate behind each line.
Property
For buildings, exclude the land.
Automobiles, light general purpose trucks, copiers and calculators, qualified technological equipment.
Mid-quarter applies when more than 40% of the year's depreciable basis was placed in service in the last three months of the tax year.
First-year write-offs (optional)
Taken first. For tax years beginning in 2026 the limit is $2,560,000, reduced above $4,090,000 of section 179 property.
Applied after section 179. 100% for qualified property acquired and placed in service after January 19, 2025; 40% for property acquired before January 20, 2025 and placed in service in 2025.
MACRS schedule
| Year | Tax year | Rate | Depreciation | Remaining basis |
|---|---|---|---|---|
| 1 | 2026 | 20.00% | 40,000.00 | |
| 2 | 2027 | 32.00% | 24,000.00 | |
| 3 | 2028 | 19.20% | 14,400.00 | |
| 4 | 2029 | 11.52% | 8,640.00 | |
| 5 | 2030 | 11.52% | 2,880.00 | |
| 6 | 2031 | 5.76% | – | |
| Total MACRS | 50,000.00 | |||
How MACRS works
The Modified Accelerated Cost Recovery System is how most business property placed in service after 1986 is depreciated on a federal return. The IRS fixes three things for you: the recovery period, set by the property’s class; the method; and the convention, which decides how much of the first year counts. Publication 946 turns each combination into a table of percentages.
For $50,000 of 5-year equipment under the half-year convention, the rates are 20%, 32%, 19.2%, 11.52%, 11.52%, 5.76%, so depreciation runs $10,000, $16,000, $9,600, $5,760, $5,760, $2,880 from 2026 to 2031.
| Class | Method | Examples |
|---|---|---|
| 3-year | 200% declining balance | Tractor units for over-the-road use; race horses over 2 years old when placed in service |
| 5-year | 200% declining balance | Automobiles, light general purpose trucks, computers and peripheral equipment, office machinery |
| 7-year | 200% declining balance | Office furniture and fixtures; property with no class life that isn't assigned to another class |
| 10-year | 200% declining balance | Vessels, barges and tugs; single-purpose agricultural or horticultural structures |
| 15-year | 150% declining balance | Land improvements such as fences, roads and sidewalks; qualified improvement property placed in service after 2017 |
| 20-year | 150% declining balance | Farm buildings other than single-purpose structures; certain municipal sewers |
| 27.5-year | Straight line, mid-month | Residential rental property, such as a rental home or apartment building |
| 39-year | Straight line, mid-month | Nonresidential real property, such as an office building, store or warehouse |
The declining balance methods switch to straight line in the year that gives the larger deduction; the table rates already include the switch. The full rate tables are on the MACRS depreciation tables page.
Section 179, bonus depreciation and MACRS, in order
- Section 179. Elect to expense some or all of the cost, up to $2,560,000 for tax years beginning in 2026 and limited by business income. The section 179 calculator works through the limits.
- Special depreciation allowance. Publication 946 calls it an additional deduction taken after any section 179 deduction and before regular MACRS depreciation. For qualified property acquired after January 19, 2025, it is 100% unless you elect a lower allowance or elect out for the class.
- MACRS. The table rates apply to whatever basis is left. With 100% bonus depreciation, nothing is.
All three go on Form 4562. For your financial statements, most companies keep a separate book schedule; the straight-line depreciation calculator builds that one.
MACRS depreciation: questions
- How is MACRS depreciation calculated?
- Find the property's class and convention, look up that year's percentage in the Publication 946 table, and multiply it by the unadjusted basis: cost times business-use share, less any section 179 deduction and special allowance. The rates already build in the method, the recovery period and the first-year convention, so you don't recompute them.
- What are the MACRS rates for 5-year property?
- Under the half-year convention, Table A-1 gives 20%, 32%, 19.20%, 11.52%, 11.52% and 5.76% over six tax years. Five-year property takes six years because the half-year convention treats it as placed in service at mid-year.
- Does MACRS use salvage value?
- No. MACRS recovers the whole basis over the recovery period. Salvage value is a book accounting estimate only.
- When do I have to use the mid-quarter convention?
- When more than 40% of the depreciable basis of property you placed in service during the year (not counting real property) went into service in the last three months of the tax year. Then each asset's first-year depreciation depends on the quarter it was placed in service.
- Is bonus depreciation 100% in 2026?
- Publication 946 (2025) says the One Big Beautiful Bill Act reinstated a 100% special depreciation allowance for qualified property acquired after January 19, 2025. You can elect not to claim it for a whole class of property, by attaching a statement to the return. Choose the allowance percentage in the calculator's tax view.
- What's the difference between GDS and ADS?
- The general depreciation system (GDS) is the default and uses the accelerated methods in the table above. The alternative depreciation system (ADS) uses straight line over longer recovery periods. ADS is required for some property, such as property used predominantly outside the United States, and you can elect it for any class.
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Sources
Official documents read on November 5, 2026. Vendor facts are sourced on each listing.