Enter your income and filing status to see whether you fall below the threshold, inside the phase-in range, or above it, and which Section 199A limits apply.
Educational estimate using 2026 thresholds. Not tax advice.
The calculator compares your taxable income to the Section 199A thresholds for your filing status. Below the threshold you get the full 20% with no further tests. Within the phase-in range, wage and property limits (and SSTB reductions) phase in gradually. Above the range, those limits apply in full.
Full deduction estimate, SE tax, 1099 estimates, and S-corp savings comparison.
The Section 199A income thresholds are the single biggest variable in how your QBI deduction is calculated. For 2026, those figures are $201,750 (single) and $403,500 (married filing jointly), per IRS Rev. Proc. 2025-32 (Oct. 9, 2025). Below them, every pass-through owner gets the full 20% with no additional tests. Above them, the W-2 wage limit, the property basis limit, and the SSTB rules all activate, and the calculation becomes considerably more involved. The simple Form 8995 is replaced by the longer Form 8995-A.
If your income is near the threshold, deductions that reduce taxable income can matter more than usual. A SEP-IRA contribution of $10,000, for instance, reduces both taxable income and QBI, but keeping taxable income below the threshold unlocks the simpler calculation for the full deduction. HSA contributions and careful timing of business expenses can have a similar effect. Once you know your zone, the QBI deduction calculator shows the numbers.
For 2026, $201,750 for single filers and $403,500 for married filing jointly, per IRS Rev. Proc. 2025-32 (Oct. 9, 2025). These are indexed and the IRS publishes updated figures each year in a Revenue Procedure.
The W-2 wage and property basis limits, and any SSTB reduction, apply proportionally based on how far your income falls within the $75,000 (single) or $150,000 (MFJ) phase-in band.
Specified service businesses lose the deduction entirely at the top of the phase-in range. Non-SSTB businesses retain a limited deduction (subject to the W-2 wage test) at any income level.
You get the full 20% of QBI with no wage, property, or SSTB limitation. The only cap that applies is 20% of taxable income minus net capital gains.
No - it’s educational. Confirm with a tax professional.