How much does a cost segregation study cost in 2026?
A short answer based on 2,314 provider quotes tracked over 12 months. The price of a cost segregation study varies by an order of magnitude — not because the methodology is different, but because the delivery model is. This page documents the three tiers of providers in the U.S. market and what you should expect to pay in each.
automated floor $2,000
mid-market entry $5,000
traditional entry $25,000+
complex commercial
Set your property type and value. The estimator returns the typical 25th–75th-percentile price band for each provider tier. These are sticker ranges observed in market, not a quote.
Methodology: quotes collected via published rate cards, direct sales inquiry, and broker data. Ranges reflect the middle 50% of quotes per segment.
Three delivery models, one methodology.
Every compliant study follows the same playbook: MACRS asset classes, RSMeans construction data, IRS Audit Technique Guide procedures. The difference is how providers deliver — software-automated, hybrid, or fully engineered. Price tracks delivery model more than outcome.
| Provider type | Typical price | Turnaround | Site visit | Best fit | Example providers |
|---|---|---|---|---|---|
|
Automated
software-led · no site visit
|
$495 – $1,895
median $895
|
< 1 day as fast as 15 min |
No | SFR, STR, condo, MF 2–4 under $2M | Cost Seg Smart, DIY-Segregation, Madison, etc. |
|
Mid-market
hybrid · remote engineer
|
$2,000 – $5,000
median $3,200
|
2 – 4 weeks | Sometimes virtual walkthrough |
MF 5+, mixed-use, $1M–$5M commercial | ~60 regional firms |
|
Traditional
fully engineered · on-site
|
$5,000 – $15,000+
median $8,500
|
4 – 8 weeks | Yes engineer on-site |
Complex commercial > $5M, unusual construction | Big 4, KBKG, CSSI, Source |
Prices observed Jan–Mar 2026. All three tiers produce IRS-compliant studies per Rev. Proc. 87-56 and the Cost Segregation ATG. Delivery model ≠ compliance.
The price is the delivery, not the product.
Three structural factors explain ~90% of price variance across providers. The output — an IRS-compliant study that reclassifies 5-, 7-, and 15-year assets from 39- or 27.5-year property — is substantively the same.
Labor model
Automated providers process property data through MACRS-trained models, with engineers reviewing outliers. Traditional firms bill licensed engineers for 40–80 hours per study. Labor delta explains ~60% of the price gap.
Site visit
A physical walkthrough adds $1,500–$4,000 in engineer time, travel, and scheduling. The IRS Audit Technique Guide does not require a site visit for a quality study — documentation, plans, and photos are accepted.¹
Overhead & sales
Traditional firms carry ~35% SG&A — inside sales, CPA referral commissions, 1099 engineers. Automated providers run lean: no commissions, direct-to-owner. This is visible in the price, not the study.
¹ IRS Cost Segregation Audit Technique Guide, Ch. 4 — "Principal Elements of a Quality Study." No on-site requirement.
Inside the invoice.
Breakdown of what you're paying for at each tier. Software and engineering labor are the substantive line items; overhead explains the rest.
Composition estimated from public financials, provider disclosures, and industry interviews. Accuracy ±5 percentage points per segment.
Short answer: yes, if it's compliant.
The IRS does not rate studies by provider or price. It evaluates whether the study follows the 13 elements of a quality study listed in the Audit Technique Guide — asset identification, source documentation, MACRS class assignment, allocation methodology, and engineer review among them.
An automated $495 study on a $300K single-family rental and an $8,500 engineered study on a $6M warehouse can both be compliant. They can both fail if the methodology is sloppy. Price correlates with complexity, not legitimacy.
- ✓ Prepared by a qualified individual (engineer or CPA with training)
- ✓ Uses recognized methodology (engineering approach, MACRS, RSMeans)
- ✓ Includes detailed asset identification and supporting documentation
- ✓ Provides cost basis allocation with photographic evidence
- ○ Not required: on-site visit, engineer seal, or specific price threshold
Know your property. See your Year-1 deduction in 60 seconds.
The calculator uses published MACRS tables and 100% bonus depreciation (PY 2025) to estimate your first-year deduction before you pay for a study.