1. Tax year, filing status & income
"Taxable income" here is your Form 1040 taxable income before this deduction is subtracted — the threshold test and the overall cap both use that figure. Net capital gain is net long-term capital gain plus qualified dividends; it reduces the amount the overall 20% cap is measured against, so leave it at $0 if you have neither.
2. Your qualified trade or business
One business. If you have QBI from more than one trade or business, or any of them reports a loss, see "What this does not cover" below before combining them here.
UBIA is the unadjusted basis immediately after acquisition of tangible depreciable property still within its depreciable period — usually equipment, machinery, or real property, not accumulated depreciation. Leave W-2 wages and UBIA at $0 if your taxable income is below the threshold above: neither field affects the deduction there.
3. REIT dividends & PTP income (optional)
This component gets 20% with no wage/UBIA limit and no SSTB reduction, ever — leave it at $0 if it doesn't apply to you.
Fill in your income and business details above, then click Calculate.
Estimate
| Component | Amount |
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What this does not cover
- One business only. Combining QBI, W-2 wages, and UBIA across more than one qualified trade or business — including netting a loss from one business against QBI from another, which the regulations require before applying the wage/UBIA limit — is not modeled here. Treat this as a single-business estimate.
- Not a full tax return. This estimates one deduction only — not your total tax liability, self-employment tax, other deductions or credits, or state tax (most states either do not conform to this deduction or apply their own rules).
- SSTB classification is confirmed by you, not verified against the statute and regulations here — check IRS Form 8995-A instructions and Treas. Reg. 1.199A-5 before relying on it.
- The $400 minimum deduction (2026+) is modeled as a floor on the QBI-based amount before the overall taxable-income cap — a simplification for an edge case the statute's interaction with that cap does not fully spell out in plain guidance yet.
Common questions
What is the QBI deduction?
The Section 199A qualified business income deduction lets eligible owners of a sole proprietorship, partnership, S corporation, trust, or estate deduct up to 20% of their qualified business income (QBI) from that trade or business, plus 20% of qualified REIT dividends and publicly traded partnership (PTP) income. It does not apply to C corporations, and it is a deduction from taxable income, not a credit.
What is the taxable-income threshold, and what happens above it?
For 2025, the threshold is $191,950 (single, head of household, or married filing separately) or $383,900 (married filing jointly), with a phase-in range of $50,000 / $100,000 above that. For 2026, the One Big Beautiful Bill Act raised the threshold to $201,750 / $403,500 and widened the range to $75,000 / $150,000. Below the threshold, the deduction is simply 20% of QBI. Within the range, a specified service business's deduction phases toward $0 and a non-specified business's deduction phases toward the W-2 wage / UBIA limit. Above the top of the range, those limits apply in full.
What is a specified service trade or business (SSTB)?
Fields specifically listed in the statute and regulations: health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, brokerage services, investing and investment management, trading, dealing in securities/partnership interests/commodities, or any business where the principal asset is the reputation or skill of one or more employees or owners. Above the top of the phase-in range, an SSTB's QBI deduction from that business is $0 -- other qualified trades or businesses are unaffected.
What is the W-2 wage / UBIA limit?
Above the phase-in range, a non-SSTB's QBI deduction from a business is capped at the greater of 50% of the W-2 wages that business paid, or 25% of W-2 wages plus 2.5% of the unadjusted basis immediately after acquisition (UBIA) of its qualified depreciable property. Within the phase-in range, the cap blends proportionally between no limit at all and this full limit.
What is the $400 minimum deduction, and when does it apply?
Starting tax year 2026 under the One Big Beautiful Bill Act, a filer with at least $1,000 of qualified business income from an active qualified trade or business can claim at least a $400 QBI deduction, even if the phase-out or wage/UBIA formula would otherwise produce less. It does not apply for tax year 2025.
Is this tax advice?
No. This calculator applies the published statutory formula for ONE qualified trade or business to the numbers you enter. It does not model combining multiple businesses (including netting a loss from one against QBI from another), REIT/PTP income aside, and it is not a full tax return. Verify against the IRS's own guidance (Form 8995-A instructions) or a qualified tax professional before filing.