Skip to main content
US Tax

Depreciation Calculator (MACRS)

Annual MACRS depreciation, first-year partial (mid-month convention), and recapture projection for US residential and commercial real estate. Accurate as of April 2026.

Rates current as of April 2026

2026 federal IRS brackets, post-OBBBA permanent extensions. MACRS § 168 recovery periods, recapture § 1250.

Property details

%

Land is not depreciable. Typical: 20-30%. Check your county assessment for ratio.

Mid-month convention: Jan = 11.5/12; Dec = 0.5/12 of a full year in year 1.

Tax profile

Used for tax-savings calculations at your marginal rate.

Determines your marginal federal rate for tax-savings estimate.

Your marginal federal rate

22%

Annual Depreciation

$13,636

$1,136/month · 27.5yr SL

Year 1 Deduction

$13,068

Mid-month: 11.5 months allowed

Year 1 Tax Savings

$2,875

At 22% marginal rate

Depreciation schedule

Year-by-year breakdown (first 15 years shown).
YearDepreciationTax SavingsCumulativeRemaining Basis
Year 1$13,068$2,875$13,068$361,932
Year 2$13,636$3,000$26,705$348,295
Year 3$13,636$3,000$40,341$334,659
Year 4$13,636$3,000$53,977$321,023
Year 5$13,636$3,000$67,614$307,386
Year 6$13,636$3,000$81,250$293,750
Year 7$13,636$3,000$94,886$280,114
Year 8$13,636$3,000$108,523$266,477
Year 9$13,636$3,000$122,159$252,841
Year 10$13,636$3,000$135,795$239,205
Year 11$13,636$3,000$149,432$225,568
Year 12$13,636$3,000$163,068$211,932
Year 13$13,636$3,000$176,705$198,295
Year 14$13,636$3,000$190,341$184,659
Year 15$13,636$3,000$203,977$171,023

Recapture projection

If you sold in year 10 after claiming full depreciation each year, you'd face an estimated $33,949 of § 1250 depreciation recapture tax (25% on $135,795 of previously deducted depreciation).

A 1031 exchange or holding until death (stepped-up basis) avoids this. See the 1031 calculator to model that scenario.

Informational only — not tax advice.

This uses MACRS straight-line only. Bonus depreciation, cost segregation, § 179 expensing, QIP (15-year interior improvements), passive activity loss rules, and the at-risk limitation can all change real-world outcomes. Work with a CPA familiar with real estate before filing.

Frequently Asked Questions

Why depreciate rental property?

What's the useful life?

How do I determine land value?

What's the mid-month convention?

What is depreciation recapture?

Can I avoid recapture?