How much roof depreciation is taken per year?
Short answer. On an insurance claim, roof depreciation per year is usually the replacement cost divided by the roof's expected life, around 3 to 5 percent a year for asphalt shingles, adjusted for condition. For taxes, a rental roof is depreciated about 3.636 percent of its cost per full year over 27.5 years, and a roof on your own home is not depreciated.
Insurance: the yearly math and its limits
A straight-line yearly rate assumes the roof wears evenly. Real estimates adjust for that:
- Condition: a roof in poor shape for its age may be depreciated faster.
- Caps: some carriers stop depreciating past a maximum percentage.
- Payment schedules: tables can step down in bands of years instead of a smooth yearly rate.
Tax: yearly amounts on a rental
A $12,000 rental roof is depreciated about $436 per full year over 27.5 years. On nonresidential property over 39 years, it is about $308 per year.
Your own home
There is no yearly depreciation for taxes on a personal residence. Keep the invoice; the cost adds to your basis and can reduce gain when you sell.
Which number matters to you
If you are on a claim, the insurance figure decides your first check and the holdback. If you are a landlord, the tax figure decides your deduction. They are unrelated: a roof that is fully depreciated for one purpose can still carry value for the other.
Related: roof age and insurance and roof payment schedules.