What is the QBI deduction?

The QBI deduction (Section 199A) allows eligible business owners to deduct up to 20% of qualified business income from pass-through entities. This includes sole proprietorships, partnerships, S-corporations, and some trusts. The deduction was made permanent by the One Big Beautiful Bill Act in July 2025.

What are the QBI income thresholds for 2026?

For 2026, QBI phase-out thresholds are approximately $199,200 (single/head of household) to $249,200 for full phase-out, and $398,400 (married filing jointly) to $498,400 for full phase-out. Below these thresholds, you typically receive the full 20% deduction.

What is a Specified Service Trade or Business (SSTB)?

SSTBs include businesses in health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, and investing. SSTB owners face phase-out of the QBI deduction once taxable income exceeds the threshold amounts.

How accurate is this QBI calculator?

This calculator provides estimates based on current Section 199A rules and common scenarios. Actual QBI deductions vary based on state taxes, other deductions, aggregation elections, and specific business circumstances. Consult a qualified CPA for personalized calculations.

QBI Calculator for 2025 & 2026 Tax Years

Free QBI Calculator: Estimate Your Section 199A Deduction

This QBI calculator estimates your Section 199A qualified business income deduction. Enter your business income, select your entity type, and see your potential 20% deduction. The QBI deduction can reduce taxable income by up to 20% for pass-through business owners.

✅ Good News! The QBI deduction is now permanent (One Big Beautiful Bill Act, July 4, 2025). Starting 2026: New $400 minimum deduction available for qualifying taxpayers.

📚 New to QBI? Read our Partnership Tax Guide | S-Corp Tax Guide

Calculate Your QBI Deduction

Tax Year

Select the tax year you’re calculating for

Tax Filing Status

Business Entity Type

Entity type affects how QBI is calculated

Total Taxable Income (Before QBI Deduction)

Your total taxable income from all sources

Qualified Business Income (QBI)

Net profit from your business

W-2 Wages to Yourself (S-Corp Only)

Your salary from the S-Corporation

W-2 Wages to Employees

Total wages to all employees (not including yourself if S-Corp)

Unadjusted Basis of Property (Optional)

Original cost of depreciable business property

Is Your Business a Specified Service Trade/Business?

⚠️ SSTB phase-out: 2025: $197,300/$394,600 | 2026: ~$199,200/~$398,400 (single/married). IRS guidance

Your Estimated QBI Deduction Analysis*

Qualified Business Income: $0

Initial 20% Calculation: $0

W-2 Wage Limitation: N/A

Taxable Income Limit: $0

Your Estimated QBI Deduction: $0

⚠️ QBI Calculator Disclaimer

*This QBI calculator provides estimates for educational purposes only. Actual deductions depend on IRS Section 199A rules, aggregation elections, other income sources, and your specific tax situation. Results may not reflect your actual deduction. Consult a qualified CPA before making tax decisions. Schedule a consultation for personalized analysis.

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