Vehicle · Free calculator

Business vehicle deduction

Your 2026 deduction three ways: the mileage rate, regular depreciation, or a first-year write-off, with Minnesota’s add-back. No account needed.

Your numbers

Answer each Yes/No question, then fill in the amounts that appear. Use 0 only when an amount is truly zero. Want to see how it works first? Load example numbers below.

Did your own business buy this vehicle, and do you report the business on your personal tax return?

For a sole proprietor or a single-member LLC. Not for a leased vehicle, a vehicle owned by an S corporation or partnership, or five or more vehicles used at the same time.

YesNo

What did the vehicle cost? (dollars)

The price plus sales tax, dealer fees you capitalize and add-ons, minus any trade-in credit. For example, 48,000. Leave out registration tabs: they are a yearly cost.

When did (or will) you start using it for business in 2026?The month it was ready and available for business use. It sets how much of 2026 counts.

What kind of vehicle is it?GVWR is the gross vehicle weight rating on the sticker inside the driver’s door, not the weight of the empty vehicle. It decides which depreciation limits apply.

What percent of the miles will be for business? (percent)

Business miles ÷ all miles, from a mileage log. For example, 80. Driving between home and your regular workplace is commuting, not business. Section 179 and bonus depreciation need more than 50%.

How many business miles will you drive in a full year? (miles)

For example, 12,000. We count only the months it is in service in 2026.

How much will fuel cost a year, for all driving? (dollars)

Gas or charging for business and personal miles together. For example, 4,200. We take your business share.

How much will insurance cost a year? (dollars)

For example, 2,000.

How much will repairs, maintenance and tires cost a year? (dollars)

Oil changes, tires, brakes and repairs, plus car washes. For example, 1,200.

Did you sign the contract to buy it before January 20, 2025?A vehicle under contract before then gets only 20% bonus depreciation in 2026; one bought after gets 100%.

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Assumptions, sources & limitations

Planning estimates only. Not a tax return, filing, payment, lending quote or personalized advice. Results depend on complete and accurate inputs. No guarantee of savings or penalty protection. Tax figures checked October 31, 2026; changes and special rules may apply. This initial release needs firm validation before client reliance.