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Arete TOOLS · BUSINESS TAX PLANNING

2026 QBI
Deduction Calculator.

Explore your Section 199A deduction and see how income, wages, property, and business type affect the estimate.

All tools & calculators
01 · Your 2026 tax return
After other deductions, before Section 199A and the Section 68 itemized-deduction limitation.
Use the net capital gain amount relevant to Section 199A, including qualified dividends.
02 · Business information
One business or a valid aggregation, after allocable business deductions. Exclude owner W-2 pay and guaranteed payments.
Do not enter a loss already included in your QBI amount.

SSTBs can include accounting, consulting, health, law, and investment management. Classification depends on the actual services.

Business wages properly attributable to QBI, not your household’s W-2 income.
Unadjusted basis immediately after acquisition of eligible depreciable property. Exclude land.
03 · Active-business minimum & tax savings

The $400 minimum requires at least $1,000 of eligible QBI from active qualified trades or businesses. Passive ownership alone does not qualify; this calculator does not determine material participation.

Used only to illustrate the income-tax effect of the deduction.
How this estimate works & IRS references

Models one business or a valid aggregation. The regular deduction begins with 20% of QBI. W-2 wage and qualified-property limits phase in above the applicable taxable-income threshold. An SSTB’s QBI, wages, and UBIA are reduced by its applicable percentage before the wage/property phase-in is applied. The regular deduction is capped at 20% of taxable income less net capital gain, including qualified dividends.

The 2026 minimum under Section 199A(i) is modeled only if you confirm active-business eligibility and eligible net QBI is at least $1,000. Fully excluded SSTB income does not establish eligibility here. The statutory minimum is applied after the regular calculation. Multiple businesses, cross-business loss allocations, qualified REIT/PTP income, cooperative reductions, trusts, and other return-level interactions require a separate calculation. QBI eligibility, aggregation eligibility, and material participation are not determined by this tool.

Sources: IRS 2026 thresholds, Section 4.26 · IRS QBI guidance · Section 199A statutory text