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Enter the two numbers that drive QBI

QBI is not gross revenue. Taxable income is entered before the Section 199A deduction.

YOUR 2026 NUMBERS

QBI and taxable income

Estimated qualified business income (QBI)Qualified net business income after deductions allocable to the business — not gross 1099 revenue. Taxable income before QBI deductionYour federal taxable income before the Section 199A deduction.

Advanced QBI limitsNeeded mainly when taxable income exceeds $201,750Optional +

Net capital gain / qualified dividendsUsed for the overall 20% taxable-income cap. Specified service trade or business (SSTB)Examples can include health, law, accounting, consulting and certain other service fields. W-2 wages paid by this businessThese are wages the qualified business paid — not your personal W-2 income from another job. UBIA of qualified propertyUnadjusted basis immediately after acquisition of qualified property for the wage/property limitation. Active qualified trade or businessThe new 2026 $400 minimum deduction requires at least $1,000 of QBI from active qualified trades or businesses.

✓ 2026 thresholds✓ SSTB logic✓ Wage/property limitsMethodology

Scope: federal 2026, single filer, one qualified business, direct QBI input. This tool does not determine whether income qualifies as QBI and does not model multiple-business aggregation, QBI loss carryovers, REIT/PTP components, cooperative patron rules or entity-level preparation. Planning estimate only, not tax or accounting advice.

STEP 2 · RESULT

Your estimated Section 199A deduction

The deduction can be below 20% because several limits may apply.

ESTIMATED 2026 QBI DEDUCTION$0

Enter QBI and taxable income to calculate.

Effective deduction vs QBI0%Can differ from 20%

Taxable income after QBI$0Federal taxable income estimate

Estimated federal tax reduction$0Single-filer 2026 brackets

2026 threshold status—$201,750 threshold

Why this is the resultSee the competing Section 199A limitsOpen −

20% of QBI candidate	$0
Overall taxable-income cap	$0
W-2 wage / property limit	$0
2026 minimum-deduction rule	—
Phase-in end (single filer)	$276,750

See how Solo 401(k) and SEP IRA contributions can change QBI →

What is the QBI deduction?

Section 199A can allow eligible noncorporate taxpayers to deduct up to 20% of qualified business income. Wage income and income earned through a C corporation are not QBI. The deduction can also be limited by taxable income, business type, W-2 wages paid by the business and qualified property.

IRS QBI deduction overview →

What changed for 2026?

For single filers and other returns in this calculator's scope, the 2026 threshold is $201,750 and the phase-in ends at $276,750. Beginning in 2026, taxpayers with at least $1,000 of QBI from active qualified trades or businesses may also be eligible for a minimum QBI deduction of $400.

IRS 2026 inflation adjustments and Section 199A changes →

Why ask whether the business is an SSTB?

Above the threshold, specified service trades or businesses can lose part or all of the QBI component as taxable income moves through the phase-in range. W-2 wage and qualified-property limits can also matter above the threshold.

QBI Deduction Calculator

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