Does bonus depreciation on trucks cover used ones? Yes. Trucks acquired after January 19, 2025 qualify for 100% first-year bonus depreciation, new or used, as long as a used truck is new to you.
Bonus depreciation lets a trucking business deduct the cost of a qualifying truck in the year it goes into service instead of spreading it over several years. This guide covers how the rule works in 2026, what makes a used truck qualify, how Section 179 fits in, and where truck buyers lose the deduction. Every figure is tied to an IRS, Treasury, or statute source, and we flag the places where sources are thin.
Jump to: How it works | Who qualifies | Used truck test | Section 179 | Weight rules | Cost and cash flow | New or used | Mistakes | FAQ
Key Takeaways
- 100% first-year bonus depreciation is now permanent for qualifying property acquired after January 19, 2025, under the One Big Beautiful Bill Act and IRS Notice 2026-11.
- A used truck qualifies only if it is new to you: no depreciable interest held by you or a predecessor during the lookback period, and no purchase from a related party (Section 179(d)(2)).
- Section 179 allows up to $2,560,000 in 2026 and phases out above $4,090,000 of purchases, and it cannot exceed your business taxable income (Rev. Proc. 2025-32). Bonus depreciation has no income cap and can create a net operating loss.
- Heavy trucks avoid the $20,300 first-year vehicle cap, which covers vehicles rated at 6,000 pounds or less, and vehicles used directly to haul freight for hire are excluded (Rev. Proc. 2026-15, Section 280F).
- Used Class 8 trucks averaged $60,986 at retail in July 2026 (ACT Research), and new heavy trucks carry a 12% federal excise tax on the first retail sale (26 U.S.C. 4051) that used trucks skip.
- A deduction is not a discount: 100% bonus saves only your tax rate times the price, and selling the truck later can trigger ordinary income up to the depreciation you took (Section 1245).
- California does not allow bonus depreciation, and other states add it back in whole or in part, so a full federal deduction may not mean a full state deduction (Bloomberg Tax).
Buying a truck? Stop waiting 30 to 60 days for freight bills to pay.
A down payment and the first truck payments come out of cash flow, not out of your tax bill. See whether factoring is worth it for owner-operators before you sign.
- Get paid the day you deliver instead of a month later
- Cover the down payment, insurance, and first payments from delivered loads
- Free to apply with one short request form
How does bonus depreciation on trucks work in 2026?
Bonus depreciation is an extra first-year deduction for qualifying business equipment, and for trucks it means writing off the purchase price in the year the truck is placed in service instead of over several years. The One Big Beautiful Bill Act (OBBBA, Public Law 119-21, signed July 4, 2025) made the 100% rate permanent for qualified property acquired after January 19, 2025.
Treasury and the IRS issued Notice 2026-11 on January 14, 2026 (IR-2026-06) as interim guidance. It says taxpayers may generally rely on the existing bonus depreciation regulations, with the new January 19, 2025 dates substituted in. The deduction is automatic unless you elect out, and the election out covers a whole class of property placed in service that year, not one truck. A one-time election also let taxpayers take 40% instead of 100% for qualified property placed in service in their first tax year ending after January 19, 2025.
The date that matters is the acquisition date, not delivery or payment. Under the statute, property is not treated as acquired after the date a written binding contract is entered into for it. If you signed a binding contract on or before January 19, 2025, the truck stays on the older phase-down schedule, which is 40% for property placed in service in 2025 and 20% for 2026 (Rev. Proc. 2026-15).
You claim the deduction for the year the truck is placed in service. Publication 946 defines that as ready and available for a specific use, which is not the day you sign or pay. Because the 100% rate no longer expires, the law creates no December 31 cliff, but a truck that is not in service by year-end moves the deduction into next year.
Which trucks qualify for bonus depreciation, new or used?
Tractors, straight trucks, and trailers used in your business generally qualify because they are depreciable tangible property with short recovery periods. Property with a class life of 4 years or less is 3-year property, and property with a class life of more than 4 but less than 10 years is 5-year property (Section 168(e)). In practice, over-the-road tractor units are generally 3-year property and heavy trucks and trailers are generally 5-year property under the asset class table in Publication 946, so confirm your class with your CPA.
A new truck qualifies when its original use begins with you. A used truck qualifies when it is new to you and passes the acquisition tests in the next section. The table compares the two.
| Factor | New truck | Used truck |
|---|---|---|
| Bonus rate | 100% | 100% |
| Acquisition date | After January 19, 2025 | After January 19, 2025 |
| Ownership test | Original use begins with you | Not previously used by you or a predecessor in the lookback period |
| Seller test | None | Not a related person or a member of your controlled group |
| Section 179 eligible | Yes | Yes, if bought by purchase from an unrelated seller |
| Federal excise tax | 12% on the first retail sale of heavy trucks, tractors, and trailers above the weight thresholds | Not charged on a later resale |
| Price signal | Varies by model, and the excise tax is built into the price | $60,986 average retail price (ACT Research, July 2026) |
| First-year deduction | Larger, because the price is higher | Smaller, because the price is lower |
Sources: IRS Notice 2026-11; 26 U.S.C. 179(d); 26 U.S.C. 4051; ACT Research.
What makes a used truck qualify for bonus depreciation?
A used truck qualifies when it passes two families of tests: it must not have been used by you or a predecessor before, and it must be acquired by a true purchase. Both come from the used-property rules in Treasury Regulation 1.168(k)-2, which point to the acquisition rules in Section 179(d).
The prior-use test asks whether you or a predecessor had a depreciable interest in the truck before you bought it, whether or not anyone claimed depreciation. The regulation counts only a lookback period: the five calendar years before the year the truck is placed in service, plus the part of that year before service (Current Federal Tax Developments quotes the rule from T.D. 9916). That is why a truck you sold years ago can sometimes qualify when you buy it back, and why one you sold last year usually cannot.
| Check | What the rule says | Source |
|---|---|---|
| 1. No prior depreciable interest | You and any predecessor had no depreciable interest in the truck during the lookback period | Reg. 1.168(k)-2(b)(3)(iii), T.D. 9916 |
| 2. Not from a related person | The seller is not someone whose relationship to you would disallow losses under sections 267 or 707(b). For individuals, family means a spouse, ancestors, and lineal descendants | 26 U.S.C. 179(d)(2)(A) |
| 3. Not from your controlled group | The seller is not another component member of your controlled group, tested at more than 50% ownership | 26 U.S.C. 179(d)(2)(B) and (d)(7) |
| 4. No carryover basis | Your basis is not figured from the seller’s basis, and the truck is not inherited | 26 U.S.C. 179(d)(2)(C) |
| 5. Bought for your active business | You acquired it by purchase for use in the active conduct of a trade or business | 26 U.S.C. 179(d)(1)(C) |
Sources: 26 U.S.C. 179; 26 CFR 1.168(k)-2; Current Federal Tax Developments.
Leasing is the gray area. The test is whether you had a depreciable interest, and none of the sources we could retrieve says how a prior lease is treated when the lessee later buys the truck. Earlier versions of this article said a former lease always disqualifies a purchase, and we could not support that rule. If you plan to buy out a truck you leased or rented, get your CPA’s answer in writing before you sign.
How do Section 179 and bonus depreciation work together on a truck?
Section 179 lets you expense qualifying equipment up to a dollar limit. For tax years beginning in 2026 that limit is $2,560,000, reduced dollar for dollar once you place more than $4,090,000 of Section 179 property in service (Rev. Proc. 2025-32, section 4.24). By our arithmetic, the deduction reaches zero at $6,650,000 of purchases.
Two rules make the choice matter. Section 179 cannot exceed the taxable income from your active trade or business, and any amount you cannot use carries forward (26 U.S.C. 179(b)(3)). Bonus depreciation has no income cap, so it can push your taxable income below zero and create a net operating loss.
A bonus-created loss is not a refund. For years beginning after 2020, an NOL can offset only 80% of taxable income in a later year, it carries forward without expiring, and the carryback rules now reach only narrow cases such as farming losses (26 U.S.C. 172). When you use both deductions, you take Section 179 first, then bonus depreciation on the remaining cost, then regular MACRS on what is left (Publication 946).
| Feature | Section 179 | Bonus depreciation |
|---|---|---|
| Dollar limit | $2,560,000, phasing out above $4,090,000 | None |
| Income limit | Taxable income from your active business, with carryforward | None |
| Can create an NOL | No | Yes |
| New and used trucks | Both, if bought by purchase from an unrelated seller | Both, if a used truck passes the acquisition tests |
| How you choose | Elect the items and amounts on Form 4562 | Automatic, with an election out by class of property |
| SUV cap | $32,000 for vehicles that meet the SUV definition | No separate SUV cap |
| State example: California | Allowed up to a $25,000 cap with a $200,000 investment phase-out | Not allowed |
Sources: Rev. Proc. 2025-32; 26 U.S.C. 179; Notice 2026-11; Law Office of Pietro Canestrelli (California).
For most truck buyers, 100% bonus does the heavy lifting federally, and Section 179 becomes a tool for choosing specific assets and for state returns. Because states treat the two rules differently, ask your CPA to model both the federal and state results before you choose. Our guide to maximizing tax savings as an owner-operator covers the wider deduction picture.
How does the vehicle weight rule change bonus depreciation on trucks?
The 6,000-pound line decides whether a vehicle is a capped passenger automobile. The statute defines a passenger automobile as a four-wheeled vehicle made mainly for public roads that is rated at 6,000 pounds or less, using gross vehicle weight for trucks and vans, and it excludes any vehicle used directly in the business of transporting persons or property for compensation or hire (26 U.S.C. 280F(d)(5)).
For 2026, Rev. Proc. 2026-15 caps depreciation on passenger automobiles, which it says include trucks and vans, at $20,300 in year one with bonus and $12,300 without. Later years are $19,800, $11,900, and $7,160 per year. A Class 8 tractor is nowhere near the weight line, so its full cost is eligible.
| Vehicle | Weight rating | What limits apply |
|---|---|---|
| Light pickup, van, or small truck | 6,000 pounds GVW or less | Passenger-automobile caps, including $20,300 in year one with bonus, unless the vehicle is used directly to haul for hire |
| Heavy pickup or SUV | 6,001 to 14,000 pounds GVW | No passenger-automobile cap. Section 179 is limited to $32,000 if the vehicle meets the SUV definition, and bonus applies to the full cost if business use is over 50% |
| Class 8 tractor, heavy straight truck, or trailer | Well above 14,000 pounds | No passenger-automobile cap and no SUV cap, so the full cost is eligible |
Sources: Rev. Proc. 2026-15; 26 U.S.C. 280F; 26 U.S.C. 179(b)(5); Rev. Proc. 2025-32.
The $32,000 SUV cap does not apply to a vehicle that seats more than nine people behind the driver, that has an open cargo area of at least six feet that is not readily accessible from the passenger compartment, or that has an integral enclosure fully enclosing the driver compartment and load-carrying device with no rear seating (26 U.S.C. 179(b)(5)(B)).
Listed property adds a paperwork rule. Vehicles used as a means of transportation are listed property, and if business use is 50% or less, accelerated depreciation is off the table (26 U.S.C. 280F(b)). The statute excepts property used substantially all the time in a trade or business of transporting persons or property for hire for unrelated persons, so a tractor that hauls freight for hire is generally outside those rules while a pickup that also serves personal use is not. Keep a mileage log for any truck that serves two purposes.
How much does a new or used truck cost, and what is the deduction really worth?
Used Class 8 trucks averaged $60,986 at retail in July 2026, down 4.0% from June, according to ACT Research as reported by FreightWaves. Average mileage was about 400,000 in May (Transport Topics). ACT describes a used market with strong transaction activity and softer pricing that is “supporting equipment turnover without producing uniform value appreciation” (ACT Research).
Used values can swing. J.D. Power data cited by FreightWaves shows a typical four-year-old sleeper selling at auction for roughly $30,000 to $50,000 across the 11 years between the Great Recession and COVID-19, then peaking near $118,000 in early 2022. A truck you expensed in full can be worth more or less than its tax basis of zero when you sell it.
New heavy trucks add a federal excise tax. Section 4051 imposes 12% of the sale price on the first retail sale of truck chassis and bodies, trailers, and tractors above its weight thresholds, such as trailers above 26,000 pounds GVW and trucks above 33,000 pounds GVW. A later resale is not a first retail sale (Section 4052). ATRI says the tax adds $20,000 to more than $50,000 to each new truck (ATRI, April 2025, its own estimate), and the statute is scheduled to stop applying on October 1, 2028.
Engine rules add another variable. FTR estimates that noncompliance penalties for 2027 could add about $6,000 to $7,000 per engine, and that fully EPA 2027-compliant engines could carry an estimated $8,000 to $12,000 manufacturer upcharge (FreightWaves, September 3, 2026). FreightWaves also reports that manufacturers have split on how to approach 2027, which leaves 2027 pricing unsettled (September 13, 2026).
Financing changes the cash math. According to FreightWaves’ September 13 report on truck financing, rates run from roughly 5.25% for investment-grade private fleets to 12% or higher for lower-credit small operators, who are typically asked for a deposit too. Our guides to five options for financing a commercial truck and top tips for financing your trucking company cover the choices.
Here is the math with round numbers. The prices and the 25% combined tax rate are assumptions for illustration, not market data.
| Assumed purchase price | First-year deduction | Tax reduction at 25% | Cost after the tax reduction |
|---|---|---|---|
| $60,000 | $60,000 | $15,000 | $45,000 |
| $120,000 | $120,000 | $30,000 | $90,000 |
| $180,000 | $180,000 | $45,000 | $135,000 |
Illustration only. The 25% combined federal and state rate is an assumption. Your rate, income, and state rules will differ.
Even at 100%, the deduction returns your tax rate times the price, so the truck still costs you the other 75% in this example. The deduction moves the benefit into year one instead of spreading it out, and if you later sell the truck for more than its adjusted basis, the gain up to the depreciation you took is ordinary income under Section 1245. A deduction only saves tax if you have income to offset, and otherwise it becomes an NOL.
What happens to a trade-in?
For 2018 and later years, like-kind exchange treatment applies only to real property, per the Form 8824 instructions. A truck trade-in is therefore a sale of the old truck and a purchase of the new one. The full price of the replacement is its depreciable basis, and the trade-in allowance counts as what you received for the old truck.
If the old truck was fully expensed, the whole allowance can be ordinary income under Section 1245. Ask your CPA to estimate that number before you sign the purchase agreement.
Should you buy a new or a used truck for tax purposes?
Bonus depreciation should not pick your truck, because both qualify at the same 100% rate. Choose on total cost of ownership and let the tax rules confirm you can deduct it. As Kirk Mann of Mitsubishi HC Capital America told FreightWaves, “If you don’t understand your cost per mile, nothing else really matters” (FreightWaves). Start with our trucking cost and profit calculator and our guide to the real cost of trucking per mile.
A new truck tends to make sense when you have enough taxable income to use a large deduction, when uptime and warranty matter more than purchase price, and when a lender will finance it on terms you can carry. Compare configurations in our day cab vs sleeper cab guide, and price the excise tax and 2027 engine costs into the quote.
A used truck tends to make sense when you want a smaller loan and a smaller cash outlay while keeping the same 100% rate. Inspect it before you buy, and read its fault codes with a tool from our heavy-duty diagnostic scanner roundup. Then confirm that the seller is unrelated and that neither you nor a predecessor held the truck in the lookback period. Our older primer on what kind of truck your business needs covers fit and fuel economy.
Taking delivery soon? Get the truck insured before it hauls its first load.
A truck that goes into service needs coverage from day one, and premiums vary by coverage type. Read our breakdown of trucking insurance costs across six coverage types first.
- Browse commercial cargo insurance companies state by state
- Compare coverage types before you get quotes
- Free to use, built on QuickTSI’s directory of trucking resources
Timing is less urgent than it used to be, because the 100% rate is permanent. The deduction follows the placed-in-service date, so a truck delivered in January gives you next year’s deduction. If you want this year’s deduction, get the truck ready and available for use before year-end. Freight rates matter here too, since they shape the income you are offsetting, so see our 2026 trucking industry outlook.
In a mixed fleet, remember that the election out applies by class of property. You cannot take bonus on a new tractor and skip it on a used tractor in the same class, but you can pick Section 179 items one at a time (26 U.S.C. 179(c)). New carriers building a fleet from scratch should also read our nine steps to start a trucking company and the financial assessment for new owner-operators.
What mistakes cost truckers their bonus depreciation?
Signing the contract too early. A binding contract dated on or before January 19, 2025 keeps the truck on the old phase-down schedule, which is 40% for 2025 and 20% for 2026, even if you took delivery this year.
Buying from a related seller, or buying back a truck. A seller who fails the related-person tests disqualifies a used truck, and so does a depreciable interest of your own inside the lookback period.
Assuming your state follows the federal deduction. California does not allow bonus depreciation. A May 2026 table from a cost segregation firm also lists add-backs in New York, New Jersey, and Illinois, and Bloomberg Tax publishes a corporate-only chart of state treatment. A California tax attorney notes that accelerating a purchase for the federal deduction delivers no benefit in a state that does not conform. Verify your state before you count on the savings.
Forgetting recapture when you sell. Gain up to the depreciation you took is ordinary income under Section 1245, which matters most on a trade-in of a fully expensed truck.
Keeping thin records. The IRS says to keep property records until the period of limitations expires for the year you dispose of the property, per its record-keeping page. Save the dated contract, bill of sale, in-service proof, and mileage logs for mixed-use vehicles. Our guide to digital tools for small fleets and our post on tax deductions truckers should know can help you stay organized.
Skipping the form. You report the deduction on Form 4562. Ask your CPA to confirm the asset class, the in-service date, and any election out before filing.
Owner-operator? Cover the truck payment without waiting on brokers.
Slow-paying freight bills are the fastest way to strain a new truck payment. Compare providers in our 2026 factoring rankings or read about cash flow problems in trucking.
- Get same-day pay on delivered loads
- Built for owner-operators and small fleets
- One short request form gets you started
How was this article on bonus depreciation for trucks researched?
Methodology. We rebuilt this article on September 20, 2026 from primary sources: IRS Notice 2026-11 and news release IR-2026-06, Rev. Proc. 2025-32, Rev. Proc. 2026-15, Internal Revenue Code sections 168, 172, 179, 280F, 1245, 4051, and 4052, the Form 8824 instructions, the IRS record-keeping page, and Publication 946. Market data comes from ACT Research, Transport Topics, FreightWaves, and ATRI. State treatment comes from Bloomberg Tax and a cost segregation firm, which we treat as secondary sources. Because this is a tax topic, we did not use forum posts or anonymous anecdotes.
What we corrected. Our June 2026 version gave the light-vehicle cap as both $20,300 and $20,200, and the correct 2026 figure with bonus is $20,300. It said every truck must be used more than 50% for business and is listed property, but the statute excepts property used substantially all the time to haul for hire, so we rewrote that section. It said a former lease disqualifies a used truck, which we could not support from primary sources, so we now flag it as a question for your CPA. It named a “five-point” related-party test without defining it, so we list the checks. It said to keep records for six years, which is not what the IRS says. It quoted several blogs and CPA firms that we could not verify, and it gave new and used price ranges without sources, so we removed both.
Limits. We read the used-property regulation through Current Federal Tax Developments’ quotation of T.D. 9916, not the regulation text itself. We could not retrieve the asset class table in Publication 946, so recovery periods are stated as general rules. Our reading that used resales escape the excise tax rests on the statute’s “first retail sale” wording. Sources differ on which month ACT’s $60,986 covers; ACT and FreightWaves’ September 3 report say July, and a September 13 FreightWaves report says September, so we use July. The Bloomberg Tax chart covers corporate tax only. Tax law changes often, so confirm current rules with a CPA. This article is general information, not tax advice.
What are the most common questions about bonus depreciation on trucks?
Does a financed truck still qualify for bonus depreciation?
Yes, in most cases. Publication 946 treats you as the owner of property even if it is subject to a debt, and the owner claims the depreciation. A true operating lease is different, because the lessor keeps ownership and the depreciation. A lease-purchase can fall on either side depending on its terms, so have your CPA read the contract before you sign.
What does “placed in service” mean for a truck?
Property is placed in service when it is ready and available for a specific use, according to Publication 946. For a truck, that is the point where it can start hauling freight, not the day you sign the contract or make the payment. The deduction lands in the tax year of that date.
Can a truck bought under a 2025 contract still get 100% bonus depreciation?
Yes, if the binding written contract was entered into after January 19, 2025 and the truck otherwise qualifies. If the contract was entered into on or before that date, the truck stays on the older phase-down schedule, which is 40% for 2025 and 20% for 2026 according to Notice 2026-11 and Rev. Proc. 2026-15.
Can I claim bonus depreciation on a used truck bought from a family member?
Not if the seller is a related person under Section 179(d)(2)(A). For individuals, the statute limits family to a spouse, ancestors, and lineal descendants, so a parent, grandparent, child, or grandchild is on the list. Ownership-based relationships under sections 267 and 707(b), such as a business you control, can also disqualify the purchase, so have your CPA check the seller’s ties to you.
Can bonus depreciation create a tax loss?
Yes. Unlike Section 179, bonus depreciation is not limited by your business income, so it can create a net operating loss. For tax years beginning after 2020, an NOL offsets up to 80% of taxable income in a later year and carries forward without expiring, per 26 U.S.C. 172.
Is bonus depreciation optional?
Yes. You can elect out of it, but the election applies to a whole class of property placed in service that year, not to a single truck, according to Notice 2026-11. Section 179 works differently, because you choose the items and amounts on Form 4562.
Do state taxes follow the federal bonus depreciation deduction?
Often they do not. California does not allow bonus depreciation, and other states add back all or part of it, so check your state before you count on a full state deduction. Our sources are Bloomberg Tax (corporate tax only) and a cost segregation firm, so confirm with your state revenue department.
How long should I keep records for a truck I depreciated?
The IRS says to keep records relating to property until the period of limitations expires for the year in which you dispose of the property. That can be much longer than a fixed number of years if you keep the truck for a decade. Keep the dated purchase contract, bill of sale, in-service proof, and any mileage logs. See the IRS record-keeping page.