Vehicle and equipment taxes (2026)

Everything on Enhance Finance about writing off business vehicles and equipment, in one place. Start with the tool that matches your question.

Vehicles
CheckerSection 179 vehicle checkerDoes your truck, SUV or van qualify, and which 2026 cap applies?Open →CalculatorActual vs. standard mileageWhich car deduction is bigger for 2026, and the first-year rule.Open →GuideBuy vs. lease a work vehicleHow each option is taxed. Education only.Open →CalculatorSmall fleet cost per mileReal cost per mile for 2+ vehicles, and what to charge.Open →GuideGig driver deductions (CT & NC)Mileage, phone, tolls and records for app drivers.Open →GuideMileage deductionThe basics of deducting business driving.Open →
Equipment
EstimatorYear-end equipment tax savingsWhat a December purchase could save, and what it still costs.Open →GuideWhat qualifies for Section 179Laptops, phones, POS, software, furniture, roofs and HVAC.Open →CalculatorEquipment and vehicle depreciationYear-by-year schedule with Section 179 and bonus.Open →
Rentals
GuideLandlord tools: expense or depreciateThe $2,500 safe harbor, repairs vs. improvements.Open →HubRental taxesAll rental and Airbnb guides and calculators.Open →

2026 numbers at a glance

Item2026 figure
Section 179 maximum$2,560,000 (phase-out above $4,090,000)
Heavy SUV Section 179 cap$32,000
Bonus depreciation100% for property acquired after Jan. 19, 2025
Passenger auto first-year cap$20,300 with bonus, $12,300 without
Standard mileage rate72.5¢ Jan.–June, 76¢ July–Dec.
De minimis safe harbor$2,500 per item or invoice
CT and NC don’t fully follow the federal write-off. Connecticut adds back 100% of bonus depreciation and 80% of Section 179, then lets you subtract 25% of the add-back in each of the next 4 years. North Carolina adds back 85% of bonus depreciation and limits Section 179 to $25,000 (phased out above $200,000), deducting the add-back 20% a year over 5 years. These are the 2025 state rules; check the 2026 forms when they come out.

Frequently asked questions

What is the Section 179 limit for 2026?

$2,560,000, reduced dollar for dollar once you place more than $4,090,000 of qualifying property in service in 2026. Heavy SUVs are capped at $32,000.

Is bonus depreciation 100% in 2026?

Yes, for qualifying property acquired after Jan. 19, 2025, under the 2025 tax law. Connecticut and North Carolina add most of it back and spread it out on state returns.

What is the 2026 standard mileage rate?

72.5 cents per business mile from Jan. 1 to June 30, 2026, and 76 cents from July 1 to Dec. 31, 2026.

Sources (Checked November 2026)

Educational only. This is not tax or legal advice, and it is not investment advice. Tax rules change and every situation is different, so check the IRS (irs.gov), CT DRS (portal.ct.gov/drs) or NCDOR (ncdor.gov) and talk with a tax professional before you buy or file.

Have a vehicle or equipment question for your business?

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Or call (475) 242-7941.

Enhance Finance LLC · Andrew Nocera, Tax Preparer & Small-Business Finance Consultant. Serving all of Connecticut, and North Carolina clients remotely.

Not tax, legal or investment advice. Figures are estimates for education. Checked November 2026.