What is the QBI deduction?

QBI is a deduction of up to 20% of qualified business income for eligible pass-through owners, subject to income thresholds and wage/property limits.

Who qualifies for QBI?

Owners of S-corps, partnerships, and sole proprietorships may qualify if they meet IRS eligibility rules for their tax year.

What changes the deduction above the threshold?

Once income crosses the threshold, wage and qualified property limits apply, and specified service businesses can phase out.

Is this a full tax projection?

No. This is a planning estimate. Confirm the final calculation with a CPA using IRS Form 8995 or 8995-A instructions.

Free tool. No signup required.

QBI Deduction Calculator

Estimate your Qualified Business Income deduction using 2026 thresholds. Use it as a quick sanity check before you meet your CPA.

Best for pass-through owners who want a quick read on eligibility and where the wage/property limits kick in.

Estimate your QBI deduction range

Uses 2026 thresholds and basic wage/property limits. Confirm the final number with your CPA.

Filing status

Business type

Taxable income (before QBI)

Net capital gains (optional)

Qualified business income (QBI)

W-2 wages paid by the business

Qualified property (UBIA)

Want the full QBI picture?

X1 can validate eligibility, wages, and entity structure with your full return.

Get Your Plan Read the guide

No credit card required to start

Assumptions and limits

Uses IRS 2026 thresholds from Rev. Proc. 2025-32 ($201,750 for most filers, $403,500 for joint), plus the $75k/$150k phase-in ranges.
Applies the 20% QBI rate, wage/property limits, and the taxable income cap (taxable income minus net capital gains).
Uses the specified service trade/business phase-out rules when income is above the threshold.
This is a planning estimate. Confirm eligibility and final calculation with IRS Form 8995 or 8995-A instructions.

Sources

Questions to ask your CPA

Which QBI form applies to my income level this year?
Do we qualify as a specified service trade or business?
Are W-2 wages and qualified property limiting the deduction?
Does my capital gain mix change the QBI cap?
Should we change compensation or entity structure for QBI?

Decision support

Make sure the deduction is real

Use this to prep for a CPA conversation, not to file a return.

QBI planning comes down to eligibility and limits

The 20% headline rate is real, but thresholds and wage/property limits decide the number you actually get.

Decision checklist

Confirm pass-through eligibility and entity type.
Check your 2026 income level against the threshold and phase-in range.
Collect W-2 wages and qualified property values for the business.
Flag any specified service business exposure.
Review Form 8995 or 8995-A instructions with your CPA.

Questions for your advisor

What income range are we actually in for 2026?
Is the deduction limited by wages or by business type?
Would adjusting compensation change the outcome?

This tool is for planning and coordination only. It does not provide tax, legal, or investment advice. Confirm eligibility and calculations with a qualified professional.