Finance
MACRS Depreciation Calculator
Calculate US federal tax depreciation under MACRS (IRS Pub 946). Full schedule by property class, half-year, mid-quarter, or mid-month convention.
MACRS depreciation inputs
Cost after Section 179 and bonus depreciation.
Computers, copiers, autos, light trucks, office machines.
Used only when mid-quarter convention applies.
Total depreciation
$50,000.00
Recovered over 6 tax years using the half-year convention.
Recovery period
5 years
Tax years on schedule
6
Convention used
half-year
Depreciation schedule
| Year | Percentage | Deduction | Accumulated | Remaining basis |
|---|---|---|---|---|
| 1 | 20.00% | $10,000.00 | $10,000.00 | $40,000.00 |
| 2 | 32.00% | $16,000.00 | $26,000.00 | $24,000.00 |
| 3 | 19.20% | $9,600.00 | $35,600.00 | $14,400.00 |
| 4 | 11.52% | $5,760.00 | $41,360.00 | $8,640.00 |
| 5 | 11.52% | $5,760.00 | $47,120.00 | $2,880.00 |
| 6 | 5.76% | $2,880.00 | $50,000.00 | $0.00 |
MACRS is the US federal tax method (IRS Pub 946). For GAAP or IFRS book reporting, use straight-line depreciation instead.
Frequently Asked Questions about the MACRS Depreciation Calculator
What is MACRS?
MACRS (Modified Accelerated Cost Recovery System) is the US federal tax depreciation method required for most property placed in service after 1986. It uses fixed IRS percentage tables based on property class (3, 5, 7, 10, 15, 20, 27.5, or 39 years) and convention (half-year, mid-quarter, or mid-month).
Which property class applies to my asset?
Common classes: 3-year (some tractors, race horses), 5-year (vehicles, computers, office equipment), 7-year (office furniture, machinery), 15-year (land improvements), 20-year (farm buildings), 27.5-year (residential rental), 39-year (commercial buildings). IRS Pub 946 has the full list.
What is the half-year convention?
Under the half-year convention, all property is treated as if placed in service mid-year. You get half a year of depreciation in year 1, half a year in the final year, and a full year in between. This applies unless mid-quarter (if >40% of basis is placed in service in Q4) or mid-month (real property) applies.
When does the mid-quarter convention kick in?
If more than 40% of the total basis of all property placed in service during the year falls in the fourth quarter, the IRS requires mid-quarter treatment for everything that year, not just Q4 acquisitions. Each quarter gets its own percentage table.
Can I take Section 179 or bonus depreciation instead?
Yes. Section 179 lets you expense up to $1,160,000 (2026) in qualifying property in year 1. Bonus depreciation (40% for 2026) lets you expense an additional portion of remaining basis. Both reduce the basis before MACRS tables apply. This calculator handles the regular MACRS schedule; subtract those expensings first.