Tax Deduction Calculator™
What is Section 179?
Section 179 is an IRS tax code that allows businesses to deduct the full purchase price of qualifying equipment and software purchased or financed during the tax year.
Key Benefits:
- Immediate tax deduction for equipment purchases
- Can be combined with bonus depreciation
- Reduces taxable income and lowers tax liability
- Applies to both new and used equipment
This calculator helps you estimate potential tax savings using Section 179 and bonus depreciation.
Your Savings Results
Save these results or take a screenshot for your records.
Enter your email to see your personalized savings report
Calculator provides estimates only. Consult a tax professional for advice specific to your situation.
2025 Section 179 Tax Savings Calculator – Estimate Now
Section 179 allows businesses to deduct 100% of the cost of qualifying equipment in the year it’s placed into service — even if it’s financed.
Use our calculator to estimate how much cash you can save this year when purchasing or financing equipment.
Calculate
How the Calculator Works
Tax Deduction Calculator™
Calculator provides estimates only. Consult a tax professional for advice specific to your situation.
The Section 179 tax savings calculator gives you an instant estimate based on:
- Equipment Cost
- Your Tax Bracket (Effective Tax Rate)
- Bonus Depreciation (if applicable)
- Business Use Percentage
- 100% Bonus Depreciation (if applicable)
The calculator shows:
- Your Section 179 Deduction
- Bonus Depreciation (if applicable)
- Total First-Year Tax Savings
- Your Net Equipment Cost After Tax Savings
What the Calculator Shows You
- Section 179 First-Year Deduction: The portion you can write off immediately.
- Bonus Depreciation Deduction (if any): Calculated automatically if the cost exceeds Section 179’s annual limit.
- Total Tax Savings: The dollar amount you save in taxes this year.
- Net Equipment Cost After Tax Savings: Equipment cost minus tax savings = your true cost.
Tax Deduction Calculator™
Calculator provides estimates only. Consult a tax professional for advice specific to your situation.
Calculate
How the Calculator Works
- Equipment Cost
- Your Tax Bracket (Effective Tax Rate)
- Bonus Depreciation (if applicable)
- Business Use Percentage
- 100% Bonus Depreciation (if applicable)
- Your Section 179 Deduction
- Bonus Depreciation (if applicable)
- Total First-Year Tax Savings
- Your Net Equipment Cost After Tax Savings
What the Calculator Shows You
- Section 179 First-Year Deduction: The portion you can write off immediately.
- Bonus Depreciation Deduction (if any): Calculated automatically if the cost exceeds Section 179’s annual limit.
- Total Tax Savings: The dollar amount you save in taxes this year.
- Net Equipment Cost After Tax Savings: Equipment cost minus tax savings = your true cost.
Example Calculation (Sample Scenario)
- Equipment Cost: $85,000
- Business Use: 100%
- Tax Rate: 30%
- Estimated Tax Savings (30% bracket): $24,000
- Section 179 Deduction: $85,000
- Estimated Tax Savings: $85,000 × 30% = $25,500
- Net Cost After Tax Savings: $85,000 – $25,500 = $59,500
- If financed at $1,800/month: Your first-year tax savings may cover over 14 months of payments.
Your first-year tax savings may cover over 14 months of payments.
Benefits of Using the Calculator
Benefits of Using the Calculator
- Helps you understand your real cost of equipment
- Great for budgeting and cash flow planning
- Makes equipment purchases easier to justify
- Helps compare cash purchase vs. financing
- Shows how Section 179 improves ROI
Important Notes for Accuracy
- Equipment must be placed into service this tax year: Ordering it does not count.
- Used equipment qualifies: As long as it's “new to you.”
- Financing still qualifies: Even 100% financed equipment can use Section 179.
Vehicles have special rules
- Work trucks
- Heavy SUVs (>6,000 lbs GVWR)
- Passenger vehicles (capped deduction)
Frequently Asked Questions (Calculator Page Version)
Yes. You can still deduct the full purchase price even if you finance the equipment.
Use your effective tax rate, typically 20–35% for many businesses.
It provides an estimate. Always confirm numbers with your accountant.
Yes — if you want, I can add a bonus depreciation toggle or automatic calculation.
Yes — just remember:
- Heavy vehicles often qualify for the full deduction
- Passenger vehicles have IRS caps
- Work trucks typically qualify without limits
It still qualifies for the deduction this year.