How this estimate is calculated
The tool applies three things in order.
Section 179 first. For 2026 the maximum deduction is $2,560,000, with a dollar-for-dollar phase-out starting at $4,090,000 in total equipment purchases. Vehicles above 14,000 pounds GVWR have no vehicle-specific cap.
Then 100% bonus depreciation on any remaining basis. For most single-truck purchases there is nothing left over, because Section 179 covers the full price.
Then your tax rate to estimate savings. This is a deduction, not a credit, so it reduces taxable income rather than reducing tax dollar for dollar.
What the estimate does not know
Your net business income. Your Section 179 deduction cannot exceed it. If your election exceeds income, you take a partial election and carry the remainder forward. This is the most common reason a real deduction comes in below an estimate.
Your entity structure. How the deduction flows through depends on how your business is organized.
Your state. Some states do not conform to federal Section 179 limits.
Whether the truck will actually be in service by December 31. Which brings us to the part of this that has nothing to do with math.
The deadline is not December 31
It is the date the truck is placed in service, meaning ready and available for use in your business. A truck still being inspected, repaired, titled, or transported on December 31 does not count.
Working backward through inspection, repairs, titling, financing, insurance, and delivery, the practical decision window is well before December. We wrote about this in detail: Why December Is Too Late.
Frequently asked questions
How do you calculate the Section 179 deduction on a truck? Multiply the purchase price by your business use percentage to get the deductible basis. For a truck above 14,000 pounds GVWR, Section 179 can cover the full basis up to the 2026 limit of $2,560,000, subject to your net business income. Any remaining basis is covered by 100% bonus depreciation.
Is Section 179 a credit or a deduction? A deduction. It reduces taxable income rather than reducing your tax bill dollar for dollar. Your actual savings equal the deduction multiplied by your effective tax rate.
Can I use this calculator for a pickup truck? Only if it is above 14,000 pounds GVWR, or it is a pickup with a bed at least six feet long, which is excluded from the SUV cap. Vehicles at or below 6,000 pounds GVWR fall under Section 280F luxury auto limits and are not covered here.
What happens if my deduction is more than my business income? Your Section 179 deduction cannot exceed net taxable business income. You can make a partial election and carry the unused portion forward to a future tax year.
Does my state follow federal Section 179 limits? Not all states conform. Ask your CPA about your state’s treatment.
This calculator provides estimates for informational purposes only and is not tax advice. Reviewed. 2026 figures. Last verified September 2026.
Found your number? Browse trucks in that price range or call 707-669-6202. Tell us your deadline and we will tell you honestly whether it is achievable.
