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Truck Depreciation Calculator

Calculate your semi truck depreciation using MACRS 5-year (IRS standard for trucks), straight-line, or declining balance. See annual tax savings and a complete year-by-year schedule.

Truck Details

$
%
MACRS 5-Year: Uses IRS Rev. Proc. 87-57 half-year convention rates. Salvage value is ignored under MACRS. Recovery period is fixed at 6 tax years (due to half-year convention).
Year 1 Deduction
$30,000
20% of purchase price
2026 Deduction
$28,800
Year 3 of schedule
Total Depreciation
$150,000
100% of purchase price
Est. Tax Savings
$33,000
at 22% tax rate
Method
MACRS 5-Year
depreciation method
Final Book Value
$0
end of schedule

Year-by-Year Depreciation Schedule

YearDeductionAccumulatedBook ValueTax Savings
2024$30,000$30,000$120,000$6,600
2025$48,000$78,000$72,000$10,560
2026$28,800$106,800$43,200$6,336
2027$17,280$124,080$25,920$3,802
2028$17,280$141,360$8,640$3,802
2029$8,640$150,000$0$1,901
Total$150,000$33,000

Truck Depreciation for Owner-Operators

Depreciation is one of the largest tax deductions available to owner-operators. Understanding how MACRS, Section 179, and bonus depreciation work can save you tens of thousands of dollars in taxes.

MACRS 5-Year: The IRS Standard for Trucks

The Modified Accelerated Cost Recovery System (MACRS) is the IRS-mandated depreciation method for commercial trucks. Class 8 semi trucks are classified as 5-year MACRS property, but because of the half-year convention, you actually spread depreciation over 6 tax years. Year 1 gives you 20% of the purchase price, Year 2 gives 32%, and so on per IRS Revenue Procedure 87-57.

Section 179: Deduct the Whole Truck in Year 1

Section 179 lets you deduct the full purchase price of a truck in the year you place it in service, instead of depreciating it over 5+ years. For 2026, the Section 179 deduction limit is $1,220,000. This is huge for cash flow — instead of waiting years to recoup your tax savings, you get the full benefit immediately. Your deduction cannot exceed your taxable business income.

Bonus Depreciation for 2026

Bonus depreciation (also called first-year expensing under IRC Section 168(k)) allows you to deduct a percentage of a new or used truck's cost in the first year. The Tax Cuts and Jobs Act set this at 100% through 2022. For 2026, the bonus depreciation rate is 40%. This can be combined with Section 179 for maximum first-year deductions. Consult a tax professional to optimize your strategy.

Straight-Line vs. Accelerated: Which Is Better?

Accelerated methods (MACRS, declining balance) give you bigger deductions in early years, which is usually better for cash flow. Straight-line spreads deductions evenly, which might be preferable if you expect higher income in future years. Most owner-operators benefit from accelerated methods since they provide immediate tax relief during the high-cost early years of truck ownership.

Book Value vs. Tax Basis

This calculator shows book value, which decreases each year by the depreciation amount. Your tax basis (the amount the IRS considers you to have invested in the truck) decreases similarly under MACRS. If you sell the truck for more than your tax basis, the difference is taxable as depreciation recapture — taxed as ordinary income, not capital gains. This is an important planning consideration when financing or trading trucks.

MACRS 5-Year Depreciation Rates (IRS Rev. Proc. 87-57)

These are the exact IRS percentages used in the MACRS calculation above. They apply to most Class 8 semi trucks, tractors, and qualifying commercial vehicles.

20.00%
Year 1
32.00%
Year 2
19.20%
Year 3
11.52%
Year 4
11.52%
Year 5
5.76%
Year 6

The half-year convention means depreciation starts at the midpoint of the tax year regardless of purchase date, which is why there are 6 years in a 5-year recovery period.

Tax Disclaimer

This calculator is for educational and planning purposes only. Tax laws change frequently, and your specific situation may involve additional rules (listed property limits, business use percentage, mid-quarter convention, state taxes). Always consult a qualified tax professional before making depreciation elections on your tax return.

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