What are the 2026 QBI deduction thresholds?
For the 2026 tax year, the Section 199A qualified business income (QBI) deduction threshold is $201,750 for single and head-of-household filers and $403,500 for married couples filing jointly, with the wage-and-property phase-in range ending at $276,750 (single/HOH) and $553,500 (MFJ). Married filing separately uses $201,775 and $276,775. These figures come from IRS Revenue Procedure 2025-32, published October 9, 2025, and reflect the wider phase-in ranges set by Section 70105 of the One Big Beautiful Bill Act (P.L. 119-21), which also made the Section 199A deduction permanent starting in 2026.
2026 threshold summary table
| Filing status | Threshold amount | Phase-in ends at | Phase-in width |
|---|---|---|---|
| Single | $201,750 | $276,750 | $75,000 |
| Head of Household | $201,750 | $276,750 | $75,000 |
| Married Filing Jointly | $403,500 | $553,500 | $150,000 |
| Married Filing Separately | $201,775 | $276,775 | $75,000 |
How to read the phase-in range
Below the threshold amount, the QBI deduction is a flat 20% of qualified business income with no other tests. Between the threshold and the phase-in ceiling, the W-2 wage/property limit phases in gradually for non-SSTB owners, and the deduction for specified service trades or businesses (SSTBs) is reduced proportionally. Once taxable income clears the phase-in ceiling, the wage/property limit applies in full for non-SSTB owners, and SSTB owners receive no deduction at all. Run your own numbers on the QBI Deduction Calculator, which applies this same table automatically.
Did the One Big Beautiful Bill Act change these numbers?
Yes, in two ways. Section 70105 of the One Big Beautiful Bill Act (P.L. 119-21, enacted July 2025) made Section 199A permanent rather than letting it expire after 2025, and it widened the statutory phase-in range from $50,000/$100,000 to $75,000/$150,000 (single/MFJ) starting in 2026. It also added a new minimum deduction of $400 for taxpayers with at least $1,000 of qualified business income from a trade or business they materially participate in, a figure the IRS will begin adjusting for inflation after 2026. The 20% deduction rate itself, and the definition of a specified service trade or business, are unchanged.
Methodology
The threshold and phase-in figures above are taken directly from Section 4.26 of IRS Revenue Procedure 2025-32 ("Qualified Business Income"), published October 9, 2025, which sets the inflation-adjusted amounts under IRC Section 199A(e)(2) and the phase-in range amounts under Section 199A(b)(3)(B) and Section 199A(d)(3)(A) for taxable years beginning in 2026. We verified the figures directly against the IRS-published revenue procedure rather than a secondary source. This page is checked each time the IRS issues a new annual revenue procedure and will be updated for the 2027 tax year once that guidance is published, typically each October.
This reference is informational only and is not tax advice. Confirm your specific situation with a qualified CPA or the current IRS guidance before filing.
Frequently asked questions
What is the 2026 QBI threshold for a single filer?
$201,750, per IRS Rev. Proc. 2025-32. The phase-in range for single filers ends at $276,750.
What is the 2026 QBI threshold for married filing jointly?
$403,500, per IRS Rev. Proc. 2025-32. The phase-in range for joint filers ends at $553,500.
Where do these numbers come from?
Section 4.26 of IRS Revenue Procedure 2025-32, published October 9, 2025. We verified the figures directly against the IRS document rather than a secondary source.
Did Section 199A change for 2026?
Yes. The One Big Beautiful Bill Act (P.L. 119-21) made the deduction permanent starting in 2026, widened the phase-in ranges, and added a small new minimum deduction. The 20% rate is unchanged.
Estimate your own QBI deduction
Apply these 2026 thresholds to your own numbers with the free calculator.