QBI Deduction Calculator 2026
Estimate your 2026 qualified business income deduction under Section 199A using the IRS thresholds, wage and UBIA limits, and the overall taxable-income cap.
Last updated: April 3, 2026
Calculator
This calculator is built for planning. Aggregation elections, carryforwards, multiple businesses, and every Form 8995-A edge case are outside scope.
Official 2026 Section 199A thresholds used
- All other returns: threshold $201,750, phase-in end $276,750
- Married filing jointly: threshold $403,500, phase-in end $553,500
- Married filing separately: threshold $201,775, phase-in end $276,775
- Base deduction rate: 20% of qualified business income
- Overall cap: 20% of taxable income minus net capital gain
What this calculator is doing
Below the IRS threshold, the QBI deduction is usually just 20% of qualified business income plus any qualified REIT or PTP component, subject to the overall taxable-income cap. Above the threshold, wage and property limits matter, and specified service trades or businesses can lose the deduction through the phase-in range.
That means a clean below-threshold case can look simple, while a higher-income case needs more structure. This calculator is meant to help with that second situation too.
Related pages
How to read the result
The key number to watch is not just the final deduction. It is also which rule is controlling it. Below the threshold, the main driver is usually the 20% QBI amount and the overall taxable-income cap. Above the threshold, the limiting factor may switch to W-2 wages, UBIA of qualified property, or SSTB phaseout treatment.
If the result looks lower than 20% of QBI, that is not automatically an error. It usually means the return has moved into one of the higher-income limitation layers.
Examples
Simple below-threshold case
A taxpayer below the threshold with $100,000 of QBI may start with a straightforward $20,000 business component before the overall cap is checked.
Higher-income non-SSTB case
Once income is above the threshold, a business with strong wages or property can still keep a meaningful deduction even if the basic 20% amount is no longer fully available.
Higher-income SSTB case
An SSTB can see the deduction shrink through the phase-in range and disappear once income is high enough, even when the business itself remains profitable.
Common mistakes
- Looking only at business profit and ignoring taxable income.
- Missing the net-capital-gain cap on the overall deduction.
- Assuming the 20% headline rule works unchanged above the threshold.
- Forgetting that SSTBs and non-SSTBs follow different high-income paths.
FAQ
Does this calculator replace Form 8995-A?
No. It is a planning tool that explains the big moving parts well, but it does not try to reproduce every complex filing scenario.
Why ask for wages and UBIA?
Because those values can limit the deduction once taxable income is above the threshold.