Section 179 vehicle deduction calculator

How Section 179 works for vehicles

Section 179 of the tax code lets businesses deduct the full purchase price of qualifying property in the year it is placed in service, rather than depreciating it over several years. For vehicles, the rules depend heavily on the vehicle's Gross Vehicle Weight Rating (GVWR) and IRS body-type classification.

Three vehicle categories

The IRS splits business vehicles into three tiers for Section 179 purposes:

Qualifying vehicles by category (2025)

Heavy pickups and cargo vans (full §179) — GVWR is almost always printed on the driver-door placard or manufacturer spec sheet. The pickup must have an unmodified cargo bed of at least six feet to avoid the SUV classification.

• Ford F-250 / F-350 / F-450 Super Duty
• Ram 2500 / 3500 / 4500
• Chevrolet Silverado 2500HD / 3500HD
• GMC Sierra 2500HD / 3500HD
• Nissan Titan XD (some configurations exceed 6,000 lbs GVWR)
• Ford Transit (most cargo and passenger van configurations)
• Ram ProMaster 2500 / 3500
• Mercedes-Benz Sprinter 2500 / 3500
• Chevrolet Express 2500 / 3500
• GMC Savana 2500 / 3500

Heavy SUVs (§179 capped at $30,500) — These vehicles exceed 6,000 lbs GVWR but are classified as sport utility vehicles, so the cap applies.

• Cadillac Escalade / Escalade ESV
• Chevrolet Suburban / Tahoe (full-size)
• Ford Expedition / Expedition MAX
• GMC Yukon / Yukon XL
• Lincoln Navigator / Navigator L
• Toyota Sequoia / Land Cruiser
• Lexus LX 600
• Infiniti QX80
• Nissan Armada
• Jeep Grand Wagoneer
• Land Rover Defender 110 / 130
• Range Rover (full-size; verify GVWR by trim)

Note: GVWR varies by trim level, engine, and model year. Always confirm the GVWR on the driver-side door placard or manufacturer spec sheet before claiming a deduction.

Passenger autos and light SUVs (luxury auto caps) — Vehicles with GVWR at or below 6,000 lbs are "listed property" and subject to the luxury auto depreciation limits, which cap the §179 deduction at roughly $12,200 in Year 1 for 2025. Most sedans, coupes, compact crossovers, and smaller SUVs fall here.

Business-use requirement

Only the business-use fraction of the vehicle cost qualifies for §179. If you drive the vehicle 80% for business and 20% personal, only 80% of the cost counts toward the deduction. If business use drops below 50% in any year after you took §179, you must recapture (pay back) part of the deduction.

Income limitation

The §179 deduction for any year cannot exceed your taxable business income. Any disallowed amount carries forward to future years indefinitely. The calculator shows the deduction before this income limitation — if your net business income is less than the deduction, the full amount may not be deductible in the current year.

Worked examples

Example 1 — Contractor buys a Ford F-250 (heavy pickup):

Example 2 — Real estate agent buys a Chevrolet Suburban (heavy SUV):

The remaining $29,500 in business cost can be recovered through bonus depreciation (40% in 2025) and MACRS depreciation over the remaining recovery period — or the agent can pair §179 with bonus dep to take more in Year 1.

Assumptions and limitations

• Business use must be documented. The IRS requires contemporaneous mileage logs showing date, destination, business purpose, and miles driven. Without documentation, the deduction can be disallowed in full on audit.
• GVWR determines category. The vehicle's Gross Vehicle Weight Rating — not its curb weight — controls which category it falls into. GVWR is on the door placard. Ratings vary by trim and engine, so confirm for your specific vehicle.
• No bonus depreciation included. This calculator shows the §179 deduction only. Bonus depreciation (40% in 2025, for most property) is separate and can supplement §179. For SUVs, bonus dep is not subject to the $30,500 cap but is still limited to the business-use cost basis.
• Income limitation not applied. The §179 deduction cannot exceed taxable business income. The calculator shows the maximum possible deduction before that test. If business income is lower, the excess carries forward.
• Phase-out at high purchase levels. The §179 deduction phases out dollar-for-dollar when total §179 property placed in service exceeds $3,050,000 in 2025 (relevant only for large fleet purchases).
• Recapture risk if business use drops below 50%. If listed property (passenger autos and SUVs) or other §179 property drops below 50% business use in any subsequent year, a portion of the deduction must be recaptured as ordinary income.
• 2025 limits. The §179 limit ($1,220,000), SUV cap ($30,500), and luxury auto limit (~$12,200) shown are 2025 IRS figures. Check IRS.gov annually for updated limits.

Frequently asked questions

How do I know if my SUV qualifies for the higher heavy-vehicle §179?

It generally does not. If your vehicle is classified as an SUV (four-wheel drive, high ground clearance, SUV body style) and weighs more than 6,000 lbs GVWR, the $30,500 SUV cap applies. Only vehicles classified as pickup trucks with a cargo bed ≥ 6 feet, cargo vans, and similar non-SUV heavy vehicles escape that cap.

Can I use §179 and bonus depreciation together?

Yes. §179 is applied first, then bonus depreciation applies to the remaining basis. For a heavy SUV, you might take $30,500 under §179 and then 40% bonus depreciation on the remaining business-use cost. Together they often allow you to deduct the majority of a vehicle's cost in Year 1 even with the SUV cap.

Does the vehicle have to be new?

No. §179 applies to both new and used vehicles placed in service for business. Used vehicles only need to be "new to you" — they cannot have been previously used by the same taxpayer. Bonus depreciation (for property placed in service after 2022) also covers used property.

What if I use the vehicle for both business and personal use?

Only the business-use percentage of the vehicle cost qualifies. A vehicle used 70% for business has a deductible cost basis of 70% of the purchase price. You must track and substantiate the business use with a mileage log.

Is the standard mileage rate an alternative to §179?

Yes — and it is often simpler. If you use the standard mileage rate (67¢ per mile for 2024; check the IRS for the 2025 rate), you cannot also claim §179 or actual depreciation for that vehicle. The standard mileage rate already incorporates a depreciation component. High-use vehicles with large purchase prices typically benefit more from §179 and actual expenses.