Finance & Money Calculators

QBI Deduction Calculator

Estimate the basic qualified business income deduction as the lower of 20% of QBI or 20% of taxable income less net capital gains.

QBI Deduction Calculator — Online Calculator

IRC § 199A Pass-Through Deduction

QBI Deduction Calculator

Estimate your 20% Qualified Business Income deduction for sole proprietorships, partnerships, LLCs, and S-corporations. Models the 2026 threshold phase-in, SSTB restrictions, and W-2 wage / UBIA caps.

2026 Phase-in Thresholds: Single $201,775–$276,775 | Married Joint $403,500–$553,500.

Net schedule C, partnership, or S-corp pass-through profit

IRS Form 1040 line 15 (before QBI deduction)

QBI Deduction Result

Below Threshold (Full 20%)

Full 20% Allowed
Allowed QBI Deduction
$20,000
Line 13 on Form 1040
Est. Tax Savings
$4,800
At 24% marginal bracket
Uncapped 20% QBI
$20,000
20% × $100,000
Taxable Income Cap
$36,000
20% of taxable income less gains
IRS Rule Analysis:Your taxable income of $180,000 is at or below the $201,775 threshold. You receive the full 20% deduction ($20,000), subject only to the 20% overall taxable income cap ($36,000). Neither SSTB status nor W-2 wage limitations apply.

How the QBI Deduction Works (IRC § 199A)

1. Below Threshold

If taxable income is below $201,775 (Single) or $403,500 (Joint), everyone gets the 20% deduction, even SSTBs, with no W-2 wage test required.

2. Phase-In Window

Between the start and ceiling, SSTB deductions shrink proportionally. Non-SSTB deductions phase into the W-2 wage and UBIA property caps.

3. Above Ceiling

SSTBs receive $0. Non-SSTBs are capped at the greater of 50% of W-2 wages or 25% of wages + 2.5% of qualified depreciable property.

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Disclaimer: This tool provides informational results only and should not be used as professional advice.

The QBI Deduction Calculator estimates the basic qualified business income deduction from qualified business income, taxable income, and net capital gains.

QBI component=20%×QBI\text{QBI component}=20\%\times\text{QBI} Taxable-income component=20%×max⁡(0,Taxable income−Net capital gains)\text{Taxable-income component}=20\%\times\max(0,\text{Taxable income}-\text{Net capital gains}) Estimated deduction=min⁡(QBI component,Taxable-income component)\text{Estimated deduction}=\min(\text{QBI component},\text{Taxable-income component})

Example

With 100,000QBI,100,000 QBI, 120,000 taxable income, and $20,000 net capital gains:

  • QBI component: $20,000.
  • Taxable-income component: $100,000 x 20% = $20,000.
  • Modeled deduction: $20,000.

Questions

Does this include the W-2 wage or qualified-property limit?

No. Those limits and specified-service-trade rules are outside this simplified module.

Can inputs be negative?

No. The calculator rejects negative QBI, taxable income, and net capital gains.

Is this the final tax deduction?

No. It is a basic estimate and does not prepare a tax return.

Limitations

Verify current Section 199A rules, taxable-income definitions, wage limits, business classification, and filing details with current IRS guidance.

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