If your business is in the market for new wheels this year, you should know the IRS has released the 2025 depreciation limits for “luxury” business vehicles.

For vehicles placed in service in 2025, depreciation limits are as follows: $20,200 for year one, $19,600 for year two, $11,800 for year three and $7,060 for each succeeding year. This includes passenger cars, SUVs, trucks and vans. The IRS also announced lease inclusion amounts for lessees of passenger vehicles first leased in 2025. To read Rev. Proc. 2025-16, click here.