{
  "id": "macrs-depreciation",
  "version": "94c4a0901ec8",
  "status": "published",
  "name": "MACRS Depreciation Calculator",
  "question": "What is my MACRS depreciation?",
  "summary": "Builds the yearly MACRS tax depreciation schedule for 3- to 20-year property and residential rental property from the IRS Publication 946 percentage tables.",
  "category": "finance",
  "subcategory": "business",
  "url": "https://www.acalculator.org/finance/macrs-depreciation-calculator",
  "markdown": "https://www.acalculator.org/finance/macrs-depreciation-calculator.md",
  "kind": "schedule",
  "method": "Depreciation for a recovery year = basis × the Publication 946 table rate for that year ÷ 100. The table follows the property class and convention: Table A-1 (half-year), A-2 to A-5 (mid-quarter, by quarter placed in service), A-6 (27.5-year residential rental, by month).",
  "assumptions": [
    "General Depreciation System (GDS) with the IRS percentage tables: 200% declining balance for 3- to 10-year property, 150% for 15- and 20-year property, straight line for residential rental property.",
    "A calendar tax year, and the property is kept for the whole recovery period. A year of sale or a short tax year deducts less.",
    "The basis is the business part after any section 179 deduction and special depreciation allowance, without land.",
    "Arithmetic is exact on the typed basis; money shows to the cent, halves rounded up."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "basis": {
        "title": "Basis for depreciation",
        "description": "The cost or other basis of the business part, less any section 179 deduction and special allowance; for a building, leave out the land.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0.01,
        "maximum": 1000000000000
      },
      "class": {
        "title": "Property class",
        "description": "The recovery period: 5 years for cars and computers, 7 for office furniture and most equipment, 27.5 for a rental house.",
        "type": "string",
        "enum": [
          "3",
          "5",
          "7",
          "10",
          "15",
          "20",
          "27.5"
        ]
      },
      "conv": {
        "title": "Convention",
        "description": "Half-year, unless more than 40% of the year’s property bases went into service in the last 3 months: then mid-quarter.",
        "type": "string",
        "enum": [
          "half-year",
          "mid-quarter"
        ]
      },
      "q": {
        "title": "Quarter placed in service",
        "description": "The quarter of the tax year the property went into service: 1st is January to March.",
        "type": "string",
        "enum": [
          "1",
          "2",
          "3",
          "4"
        ]
      },
      "month": {
        "title": "Month placed in service",
        "description": "The month the rental property went into service (mid-month convention).",
        "type": "string",
        "enum": [
          "1",
          "2",
          "3",
          "4",
          "5",
          "6",
          "7",
          "8",
          "9",
          "10",
          "11",
          "12"
        ]
      },
      "year": {
        "title": "Tax year placed in service",
        "description": "The calendar tax year the property went into service; it labels the rows.",
        "type": "integer",
        "minimum": 1987,
        "maximum": 2100
      }
    }
  },
  "outputs": {
    "first": {
      "label": "Depreciation in the first year",
      "description": "Basis × the first-year rate ÷ 100.",
      "format": "money"
    },
    "rate": {
      "label": "First-year rate",
      "description": "The table’s percent of the basis for recovery year 1.",
      "format": "percent"
    },
    "table": {
      "label": "IRS table",
      "description": "The Publication 946 table the rates come from.",
      "format": "text"
    },
    "total": {
      "label": "Total depreciation",
      "description": "The sum of every year: the whole basis, because the rates add up to 100%.",
      "format": "money"
    },
    "years": {
      "label": "Tax years with a deduction",
      "description": "How many tax years the schedule runs.",
      "format": "integer"
    },
    "last": {
      "label": "Last tax year",
      "description": "The tax year of the final deduction.",
      "format": "integer"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "basis": 10000,
      "class": "7",
      "conv": "half-year",
      "q": "1",
      "month": "1",
      "year": 2026
    },
    "outputs": {
      "first": 1429,
      "rate": 14.29,
      "table": "Table A-1",
      "total": 10000,
      "years": 8,
      "last": 2033
    },
    "text": "$10,000.00 of 7-year property gives $1,429.00 of MACRS depreciation in the first year (Table A-1), with the last deduction in 2033."
  },
  "examples": [
    {
      "given": {
        "basis": 10000,
        "class": "7",
        "conv": "half-year",
        "year": 2025
      },
      "expect": {
        "first": 1429,
        "rate": 14.29,
        "table": "Table A-1",
        "total": 10000,
        "years": 8,
        "last": 2032
      },
      "source": "IRS, Publication 946 (2025), How To Depreciate Property, chapter 4 and Appendix A, https://www.irs.gov/publications/p946, MACRS Worksheet example: $10,000 × 14.29% = $1,429"
    },
    {
      "given": {
        "basis": 4000,
        "class": "7",
        "conv": "mid-quarter",
        "q": "1",
        "year": 2026
      },
      "expect": {
        "first": 1000,
        "rate": 25,
        "table": "Table A-2",
        "years": 8,
        "last": 2033
      },
      "source": "IRS, Publication 946 (2025), How To Depreciate Property, chapter 4 and Appendix A, https://www.irs.gov/publications/p946, Example 2: machine, Table A-2, $4,000 × 25.00% = $1,000 (year 2: 21.43%, $857)"
    },
    {
      "given": {
        "basis": 1000,
        "class": "7",
        "conv": "mid-quarter",
        "q": "3",
        "year": 2026
      },
      "expect": {
        "first": 107.1,
        "rate": 10.71,
        "table": "Table A-4"
      },
      "source": "IRS, Publication 946 (2025), How To Depreciate Property, chapter 4 and Appendix A, https://www.irs.gov/publications/p946, Example 2: furniture, Table A-4, $1,000 × 10.71% = $107 (rounded there to the dollar)"
    },
    {
      "given": {
        "basis": 5000,
        "class": "5",
        "conv": "mid-quarter",
        "q": "4",
        "year": 2026
      },
      "expect": {
        "first": 250,
        "rate": 5,
        "table": "Table A-5",
        "years": 6,
        "last": 2031
      },
      "source": "IRS, Publication 946 (2025), How To Depreciate Property, chapter 4 and Appendix A, https://www.irs.gov/publications/p946, Example 2: computer, Table A-5, $5,000 × 5.00% = $250 (year 2: 38.00%, $1,900)"
    },
    {
      "given": {
        "basis": 100000,
        "class": "27.5",
        "month": "7",
        "year": 2023
      },
      "expect": {
        "first": 1667,
        "rate": 1.667,
        "table": "Table A-6",
        "years": 29,
        "last": 2051
      },
      "source": "IRS, Publication 946 (2025), How To Depreciate Property, chapter 4 and Appendix A, https://www.irs.gov/publications/p946, mid-month example: Table A-6, seventh month; year 3 is $100,000 × 3.636% = $3,636"
    },
    {
      "given": {
        "basis": 250000,
        "class": "20",
        "conv": "mid-quarter",
        "q": "1",
        "year": 2026
      },
      "expect": {
        "first": 16407.5,
        "rate": 6.563,
        "table": "Table A-2",
        "years": 21,
        "last": 2046
      },
      "source": "IRS, Publication 946 (2025), How To Depreciate Property, chapter 4 and Appendix A, https://www.irs.gov/publications/p946, Table A-2, 20-year column: 250,000 × 6.563% = 16,407.50 (hand calculation in content.mdx)"
    }
  ],
  "sources": [
    "IRS, Publication 946 (2025), How To Depreciate Property, chapter 4: MACRS percentage tables (multiply the unadjusted basis by the table percentage each year), the half-year, mid-quarter (more than 40% of bases in the last 3 months) and mid-month conventions, the MACRS Worksheet example ($10,000 of 7-year office furniture), Example 2 (mid-quarter: $4,000 machine, $1,000 furniture, $5,000 computer) and the July residential rental example; Appendix A, Tables A-1 to A-6 (images on the page). https://www.irs.gov/publications/p946 (retrieved 2026-10-19)",
    "Cornell Law School, Legal Information Institute, 26 U.S. Code § 168, Accelerated cost recovery system: 200% declining balance for 3- to 10-year property, 150% for 15- and 20-year property, straight line over 27.5 years for residential rental property, and the conventions. https://www.law.cornell.edu/uscode/text/26/168 (retrieved 2026-10-19)"
  ],
  "related": [
    "rental-property-depreciation",
    "depreciation-recapture",
    "section-179",
    "depreciation"
  ],
  "changelog": []
}