QBI Deduction Calculator 2026

How much of the 20% §199A deduction you actually get — including SSTB phase-out and the W-2 / UBIA wage limitation most shortcuts skip.

By The PiggyMath Editorial Desk Last updated August 10, 2026 ✓ Independently verified against published IRS figures

How this is calculated

Below the 2026 threshold of $201,750 single or $403,500 jointly, the deduction is the lesser of 20% of QBI and 20% of taxable income before the deduction. Across the phase-in range ($75,000 / $150,000), an SSTB scales down QBI, wages and UBIA; a non-SSTB phases in the wage limitation. Above the range an SSTB gets nothing, and everyone else is capped at the greater of 50% of W-2 wages or 25% of wages + 2.5% of UBIA.

Worked example: $180,000 of QBI, single, no other income and no W-2 wages sits below the threshold, so the deduction is the lesser of $36,000 and 20% of taxable income after the standard deduction — typically around $32,000–$33,000.

Your QBI

Qualified business income ($)

W-2 wages paid by the business ($) Sole proprietors usually enter 0. S-corp owner salary counts here.

Unadjusted basis of qualified property (UBIA) ($)

Other taxable income before QBI ($) W-2 wages from another job, interest, spouse income, etc. Used only to place you relative to the threshold.

Filing status

Specified service trade or business (SSTB)?

Estimated §199A deduction

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20% of QBI (raw)

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20% taxable-income cap

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2026 threshold / range

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Deduction vs. QBI left taxable

How much of your QBI the §199A deduction shelters

What §199A actually does in 2026

The qualified business income deduction is permanent under OBBBA and still works as a 20% cut of pass-through profit — with limits that matter once taxable income climbs. The 2026 thresholds are $201,750 for single filers and $403,500 for married filing jointly, with phase-in ranges of $75,000 and $150,000 on top (Rev. Proc. 2025-32 and the OBBBA amendments).

This page uses the same qbiDeduction engine as the S-corp vs sole proprietor calculator: SSTB applicable percentage, wage limitation, UBIA and the taxable-income cap. Enter W-2 wages the business pays (including an S-corp owner salary) when you are testing the high-income limitation — not your personal W-2 from an unrelated employer, which belongs in “other taxable income” instead. For the shareable tables on how payroll-only S-corp advice ignores lost QBI, see S-Corp payroll vs lost QBI.

When the wage limit bites

Below the threshold there is no wage test. Above it, a business with little or no payroll can lose most or all of the deduction unless it has substantial qualified property. That is why an S-corp salary can help at high incomes even though it shrinks QBI at modest ones — the trade-off the comparison calculator prices in tax dollars.

Frequently asked questions

What is the QBI deduction in 2026?

Section 199A lets owners of pass-through businesses deduct up to 20% of qualified business income. For 2026 the thresholds are $201,750 single and $403,500 married filing jointly, with phase-in ranges of $75,000 and $150,000.

Do consultants and lawyers still get QBI?

Below the threshold, yes. A specified service trade or business (SSTB) phases out across the range and loses the deduction entirely once taxable income clears the top of that range.

Why do W-2 wages matter above the threshold?

Above the threshold the deduction is capped at the greater of 50% of W-2 wages or 25% of wages plus 2.5% of the unadjusted basis of qualified property. A sole proprietor with no payroll often sees the deduction collapse unless they have substantial UBIA.

2026 figures are sourced in data/tax-constants-2026.json and listed with IRS/SSA links on Tax Constants 2026. Calculators read the mirrored values in assets/app.js (kept in sync by tools/verify_tax_constants.mjs). No Enrolled Agent or CPA has reviewed this page unless separately disclosed with credentials and a review date.

Sources

Every formula on this page is checked against an independent implementation before publication. How we check our math →