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Section 179 vehicle
deduction

Year-1 deduction estimator for business vehicles. Includes luxury auto limits and the 6,000+ lb GVWR heavy-vehicle exception.

2026 limits

Your vehicle, your business use

Year-1 total deduction

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Section 179 + 100% bonus depreciation (2026)

Breakdown

Business-use cost basis—

Section 179 deduction—

Bonus depreciation (100% in 2026)—

Estimated federal tax savings—

Remaining basis (depreciated yrs 2-5)—

Limits explained

Why GVWR matters.

The IRS caps Section 179 differently based on vehicle class:

Passenger vehicles (under 6,000 lbs): Capped at ~$20,200 first-year (luxury auto limit).
Heavy SUVs (6,000-14,000 lbs GVWR): Section 179 capped at $32,000. Plus 100% bonus depreciation on remainder.
Trucks/vans over 14,000 lbs GVWR: Full Section 179 up to the annual limit ($2.56M in 2026), plus 100% bonus.

The combined Section 179 + bonus depreciation is why "G-Wagen tax writeoff" became famous. Bonus depreciation phases down: 100% (2017-2022) → 80% → 60% → 40% → 100% in 2026 and permanent thereafter under OBBBA P.L. 119-21.

Read our Section 179 vehicle guide for when this beats standard mileage and recapture risks.

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