QBI Deduction Calculator
The Section 199A deduction lets pass-through business owners deduct up to 20% of qualified business income. But income limits, SSTB rules, and W-2/property caps make the actual deduction complex. This calculator shows your exact deduction and tax savings.
Business Income
Business Details (for W-2/Property Caps)
QBI Deduction Results
Income Phase Zone
W-2 / Property Cap Analysis
Your deduction is limited to the greater of these two caps ($0). The 20% tentative deduction is $20,000.
QBI Deduction at Different Income Levels
How your $100,000 QBI deduction changes as other income varies (non-SSTB).
| Other Income | QBI Deduction | % of QBI | Tax Savings |
|---|---|---|---|
| $50,000 | $6,780 | 6.8% | $21,728 |
| $100,000 | $16,780 | 16.8% | $27,256 |
| $150,000 | $20,000 | 20.0% | $33,270 |
| $200,000 | $20,000 | 20.0% | $40,000 |
| $300,000 | $0 | 0.0% | $38,800 |
| $400,000 | $0 | 0.0% | $38,800 |
| $500,000 | $0 | 0.0% | $38,800 |
How the Section 199A QBI Deduction Works
The basics. If you earn income through a pass-through entity (sole proprietorship, partnership, S-corp, or LLC), you may deduct up to 20% of your qualified business income from your taxable income. This is an above-the-line deduction that applies regardless of whether you itemize.
Income thresholds for 2026. Below $201,750 (single) or $403,500 (MFJ), the deduction is straightforward: 20% of QBI, limited to 20% of taxable income before the QBI deduction. Above these thresholds, additional limitations apply over a phase-in range of $75,000 (single) or $150,000 (MFJ) under the OBBBA.
Specified Service Trades or Businesses (SSTBs). Certain professional services — law, medicine, accounting, consulting, financial services, performing arts — face harsher rules. Above the income threshold, the QBI eligible for the deduction phases down to zero. A doctor earning $350,000 filing single gets no QBI deduction.
W-2 and property caps. For non-SSTB businesses above the threshold, your deduction is limited to the greater of: (a) 50% of W-2 wages paid by the business, or (b) 25% of W-2 wages plus 2.5% of the unadjusted basis of qualified property. Capital-intensive businesses with equipment or real estate benefit from the property basis alternative.
OBBBA changes for 2026. The One Big Beautiful Bill Act widened the phase-in range (from $50K/$100K to $75K/$150K) and added a $400 minimum deduction floor for QBI above $1,000. This helps more business owners in the phase-in zone retain a meaningful deduction.