📊

QBI Deduction Calculator

Estimate qualified business income deduction with income thresholds, filing status, and business type inputs.

Business & Income Details

Qualified Business Income (QBI)

Taxable Income (Before QBI Deduction)

Filing Status

Business Type

Specified service trades or businesses include law, medicine, consulting, athletics, and financial services.

W-2 Wages Paid by Business

Qualified Property Basis (UBIA)

Unadjusted basis immediately after acquisition of qualified property.

Understanding the Section 199A QBI Deduction

The Qualified Business Income (QBI) deduction, also known as the Section 199A deduction, allows eligible self-employed individuals and small business owners to deduct up to 20% of their qualified business income from pass-through entities such as sole proprietorships, partnerships, S corporations, and some trusts and estates.

How the QBI Deduction Works

At its simplest, the deduction equals 20% of your qualified business income. However, above certain income thresholds the deduction may be limited based on W-2 wages paid by the business, the unadjusted basis of qualified property (UBIA), and whether your business is classified as a specified service trade or business (SSTB).

Income Thresholds and Phase-Outs

Single / Head of Household: Full deduction below $201,750; phase-out between $201,750 and $276,750
Married Filing Separately: Full deduction below $201,775; phase-out between $201,775 and $276,775
Married Filing Jointly: Full deduction below $403,500; phase-out between $403,500 and $553,500

If your taxable income (before the QBI deduction) is below the lower threshold, you receive the full 20% deduction with no additional limitations. Above the upper threshold, SSTB owners lose the deduction entirely, while non-SSTB owners must meet the W-2 wage and UBIA tests.

SSTB vs. Non-SSTB Businesses

Specified service trades or businesses (SSTBs) include fields such as law, accounting, medicine, consulting, athletics, financial services, and performing arts. If your business is an SSTB and your income exceeds the upper threshold, the QBI deduction is completely phased out. Non-SSTB businesses retain the deduction but are subject to W-2 wage and UBIA limits.

W-2 Wage and UBIA Limitations

For higher-income non-SSTB taxpayers, the QBI deduction is limited to the greater of:

50% of W-2 wages paid by the qualified business, or
25% of W-2 wages plus 2.5% of the unadjusted basis immediately after acquisition (UBIA) of qualified property

These limitations encourage business owners to employ workers and invest in capital equipment. If you have no employees and no qualified property, your deduction above the threshold may be reduced to zero.

This calculator provides estimates for informational and planning purposes only. The QBI deduction involves complex rules including aggregation of businesses, specified service trade limitations, and interactions with other tax provisions. Consult a qualified tax professional for advice specific to your situation. Thresholds shown are for the 2026 tax year.

Loading interactive tool...

Share this tool

How to Use the QBI Deduction Calculator

1
Enter your values
Open the QBI Deduction Calculator and fill in the required input fields with your numbers or selections.
2
Review the calculation
The tool automatically computes the result as you type. Double-check your inputs to ensure accuracy.
3
Interpret your results
Review the calculated output along with any breakdowns, charts, or explanations provided to understand what the numbers mean for your situation.

Sources & Verification

Tax rates verified against official government sources for current published tax years

IRS HM Revenue & Customs (HMRC)Canada Revenue Agency (CRA)Australian Taxation Office (ATO)

Published by ConvertCrunch Editorial Team | Our Methodology

Frequently Asked Questions

What is the QBI Deduction Calculator?

The QBI Deduction Calculator is a free browser-based tool on ConvertCrunch. Estimate qualified business income deduction with income thresholds, filing status, and business type inputs. It requires no downloads, installations, or account signups. Simply enter your values and get instant, accurate results. The tool is designed for quick calculations and informed decision-making, whether you are a professional, student, or everyday user looking for reliable answers.

How do I use the QBI Deduction Calculator?

Using the QBI Deduction Calculator is straightforward. Enter your values into the input fields provided on the page, then calculate or adjust parameters to explore scenarios. Most processing happens locally in your browser. If a feature uses a third-party service, the tool identifies that connection and the privacy policy explains it. Most users get the answers they need in under a minute.

Is the QBI Deduction Calculator free to use?

Yes, the QBI Deduction Calculator is completely free to use with no account signup, email requirement, or premium tier. Most calculations run locally in your browser. Features that depend on live data or a third-party service require a network connection and are identified in the tool. You can use it as many times as you need for personal, educational, or professional purposes.

How accurate is the QBI Deduction Calculator?

The QBI Deduction Calculator uses current tax rates, brackets, and thresholds published by the relevant tax authority. It is designed for estimation and planning purposes and produces results consistent with official guidelines. However, individual tax situations can be complex, and this tool does not replace professional tax advice. Always verify results with a qualified tax professional or the applicable government agency before making financial decisions.

Explore Related Resources

Go deeper with workflow guides, side-by-side comparisons, and reusable embeds connected to this tool.

Guides

Best Free Tax Calculators Online (2026)

Embed This Tool

Add this calculator to your website with a simple iframe.

Continue Through Topic Hubs

This tool is part of larger workflows. Open a hub to continue with the next relevant tools.

Tax and Payroll Optimization Hub

Paycheck, withholding, tax planning, and reimbursement workflows for recurring money operations.

tax calculatorspayroll calculatorspricing calculators

Freelancer Unit Economics Hub

Pricing, margin, tax, and workload tools for independent operators.

freelancer toolspricing calculatorstax calculators

UK Tax & Payroll Hub

End-to-end UK tax estimation, National Insurance, and payroll workflows for employees and self-employed workers.

tax calculatorspayroll calculators

Related Tools

📊

US Self-Employed Health Insurance Deduction Calculator

Estimate deductible self-employed health insurance premiums and taxable income impact.

📊

Section 179 Deduction Calculator

Estimate Section 179 deduction limits and first-year write-off potential for business equipment.

📊

US Home Office Deduction Calculator

Estimate your home office deduction using simplified and actual expense methods for side businesses and self-employment.

📊

Germany Self-Employment Tax Calculator

Calculate German social insurance contributions (health, long-term care, optional pension) for self-employed freelancers.

📊

US Self-Employment Tax Calculator

Calculate your US self-employment tax (Social Security + Medicare) based on your net earnings, including the 92.35% taxable base and deductible half.

📊

US Estimated Tax Penalty Calculator

Estimate underpayment penalties for quarterly taxes using projected payments and annual liability.

📊

Australia Self-Employment Tax Calculator

Calculate the Australian Medicare Levy and Medicare Levy Surcharge for sole traders and self-employed workers.

📊

UK Self-Employment Tax Calculator

Calculate UK National Insurance contributions (Class 2 and Class 4) for self-employed workers based on net profits.