IRS raises 2026 depreciation limits for passenger automobiles

After issuing a decrease last year, the IRS on Tuesday, March 3, posted slightly higher depreciation limitations for passenger automobiles.

Rev. Proc. 2026-15 contains the Sec. 280F(a) inflation-adjusted dollar limitations on depreciation deductions for passenger automobiles — which include trucks and vans — acquired after Sept. 27, 2017, and placed in service during 2026.

For passenger vehicles for which Sec. 168(k) additional first-year, or “bonus,” depreciation is applied, the limitation is $20,300 for the first tax year, an increase of $100 from the 2025 amount. Learn more.