Expect a flat fee somewhere between $1,500 and $15,000 for most properties, with the price driven by property size, complexity, and how much engineering work the provider performs.
Typical fee ranges
- Condensed or virtual studies on single-family rentals, condos, and small short-term rentals: roughly $1,500 to $3,500. These rely on photos, closing documents, and standardized cost models rather than a site visit.
- Standard engineering-based studies on small commercial buildings, multifamily, and larger residential properties: roughly $4,000 to $10,000 per building.
- Large or specialized properties, multi-building projects, hotels, and manufacturing facilities: $10,000 to $25,000 or more.
Flat fees are the industry norm. The IRS Cost Segregation Audit Techniques Guide evaluates studies on methodology and documentation quality, so what you are paying for is the engineering detail that survives an exam, not the headline percentage a provider promises.
Fee versus benefit, with numbers
Take a $2,000,000 mixed-use building purchased in 2026 with $300,000 allocated to land, leaving $1,700,000 of depreciable basis. A study reclassifies 28%, or $476,000, into 5-, 7-, and 15-year property. With 100% bonus depreciation under IRC section 168(k), permanent for property acquired after January 19, 2025 under OBBBA, that $476,000 is deductible in year 1. At a 35% marginal federal rate, the first-year tax deferral is about $166,000. An $8,000 study fee is under 2% of the deduction it unlocked, and the fee itself is deductible.
Now run the same math on a $250,000 condo with $90,000 allocated to land. A 25% reclassification of the $160,000 basis is $40,000, worth maybe $12,000 to $14,000 of first-year tax deferral. A $3,000 study still pencils, but a $6,000 one starts looking marginal, and if you cannot use the loss this year under the passive activity rules of IRC section 469, the case weakens further.
Screen before you spend
The right order is screen first, study second. A screening estimate uses your purchase price, property type, and land allocation to project the reclassification range and first-year benefit in minutes. Amadae's savings playbook includes exactly this kind of cost segregation screen, and its free Tax Strategy Projector lets you model the strategy before engaging an engineering firm. If the screen shows a thin benefit, high land value, or losses you cannot deduct this year, you just saved the entire fee.
Watch-outs
Be cautious with pricing tied to a percentage of projected savings, which can pressure aggressive allocations. Confirm the deliverable includes the asset-by-asset detail your preparer needs for the depreciation schedule and, on older properties, the Form 3115 catch-up computation under section 481(a).