Rental Property Depreciation Calculator

Free MACRS depreciation calculator. 27.5-year residential schedule, annual tax savings, and bonus depreciation. Updated for 2025 tax law.

InputsShared

Property Details

Purchase Price?

Land Value?

Improvements (if any)?

Details

Years Owned?

Property Type

Your Tax Bracket %?

Pro Forma — Improvements

Additional Planned Improvements?

As-Is TodayCurrent

Enter values to see results

Annual Deduction

—

per year

Tax Savings

—

at your bracket

Useful Life

—

years

Depreciable Basis

—

purchase − land

Depreciation Schedule

Depreciable Basis—

Useful Life (IRS)—

Annual Depreciation—

Accumulated (to date)—

Remaining Basis—

Annual Tax Impact

Annual Deduction—

Tax Saved/yr at Bracket—

Monthly Tax Savings—

Pro FormaAfter plan

Enter values to see results

New Annual Deduction

—

with improvements

New Tax Savings

—

at your bracket

Added Deduction

—

vs As-Is

Total Depreciable Basis

—

after improvements

Pro Forma Depreciation

New Depreciable Basis—

Planned Improvements—

New Annual Deduction—

Additional Deduction/yr—

Extra Tax Savings/yr—

Bonus Depreciation (2025+ Law)

Short-Life Assets (30%)—

Year-1 Bonus Deduction—

Bonus Tax Savings—

Note—

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Enter the purchase price and land value — we use the IRS 27.5-year MACRS schedule for residential rental property. The Pro Forma column shows how planned improvements increase your annual deduction. The bonus depreciation section estimates first-year savings under the 2025 tax law change.

Under MACRS (Modified Accelerated Cost Recovery System), residential rental properties are depreciated over 27.5 years using the straight-line method. You can deduct 1/27.5 of your depreciable basis (purchase price minus land value) each year — even though no cash leaves your pocket. This 'phantom loss' is one of the most powerful tax advantages of owning rental property. The One Big Beautiful Bill Act (signed Jan 19, 2025) reinstated 100% bonus depreciation permanently for qualifying property placed in service after that date.