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QBI Deduction Calculator (Section 199A, 2026 Thresholds)

What does this come to under the current IRS rules?

Twenty percent of qualified business income with the wage and property limit, the specified service phase-in and the taxable income cap.

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Your figures
Example figuresIllustrative only. Type over them with your own.
QBI deduction
$36,900
Section 199A deduction
Threshold (2026)
$403,500
Phase-in range
$150,000
Drawn to one scale
Threshold (2026)$403,500
Phase-in range$150,000
20% of QBI$40,000
Wage and property limit$30,000
Component after limit$36,900
Taxable income cap$90,000
All results
MeasureResult
Threshold (2026)$403,500
Phase-in range$150,000
Share of a specified service business that qualifies100.00%
20% of QBI$40,000
Wage and property limit$30,000
Component after limit$36,900
Taxable income cap$90,000
QBI deduction$36,900
How this was worked out
Work shownrecomputed as you type
Component = 20% x QBI, reduced toward the wage limit across the phase-in range
Wage limit = greater of 50% x W-2 wages or 25% x wages + 2.5% x UBIA
Deduction = lesser of component and 20% x (taxable income - net capital gain)
Minimum: $400 from 2026 when QBI from businesses you materially participate in is $1,000 or more, not above taxable income

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Component = 20% x QBI, reduced toward the wage limit across the phase-in range
  • Wage limit = greater of 50% x W-2 wages or 25% x wages + 2.5% x UBIA
  • Deduction = lesser of component and 20% x (taxable income - net capital gain)
  • Minimum: $400 from 2026 when QBI from businesses you materially participate in is $1,000 or more, not above taxable income

How it works

Tax year: 2026.

The deduction is the smaller of 20 percent of qualified business income, limited by wages and property once taxable income passes the threshold, and 20 percent of taxable income less net capital gain. The wage and property limit is the greater of 50 percent of W-2 wages or 25 percent of W-2 wages plus 2.5 percent of unadjusted basis of qualified property. A specified service business is phased out across the same range.

The 2026 thresholds are $403,500 for married filing jointly and $201,750 for other returns ($201,775 for married filing separately), per Rev. Proc. 2025-32. The phase-in range is $150,000 for joint returns and $75,000 for all others. Enter taxable income before the QBI deduction. From 2026 a minimum deduction of $400 applies when qualified business income from businesses in which you materially participate is at least $1,000 (Rev. Proc. 2025-32, section 2.12); the tool applies it on the QBI you enter. REIT dividends and publicly traded partnership income are not included.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

Does the wage limit apply below the threshold?

No. At or below the threshold the deduction is 20 percent of QBI, capped by 20 percent of taxable income less net capital gain.

What is a specified service trade or business?

A trade or business in a listed service field. Its QBI phases out completely as taxable income goes through the phase-in range above the threshold.

Which income do I enter for taxable income?

Taxable income before the QBI deduction, after the standard or itemized deduction.

Sources

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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