QBI (Section 199A) Deduction Calculator
A hard cliff for service businesses, a softer landing for everyone else
QBI (Section 199A) Deduction Calculator
$
$
20% of QBI
0
before any phase-out
Actual QBI deduction
0
Estimated tax saved
0
at an assumed 32% marginal rate
The SSTB cliff
Specified service trades (law, medicine, consulting, accounting, financial/investment services, and similar) get NO QBI deduction at all once taxable income clears the top of the phase-out range — a hard cutoff that non-SSTB businesses don't face.
Non-SSTB businesses phase into a wage/UBIA test instead
Above the threshold, non-service businesses don't lose the deduction outright — instead it gets limited to the greater of 50% of W-2 wages paid, or 25% of wages plus 2.5% of qualified property basis, which can still meaningfully reduce the deduction for low-wage, low-asset businesses.
The deduction is capped by overall taxable income too
Beyond the QBI-specific limits, the deduction can never exceed 20% of your taxable income minus net capital gains — a backstop that matters most for taxpayers with large amounts of long-term capital gains alongside modest business income.
Uses simplified, illustrative phase-in ranges (roughly $197,300-$247,300 for single filers, $394,600-$494,600 for joint filers, inflation-adjusted each year off the TCJA-era base) and a simplified linear phase-out for SSTBs and non-SSTB wage/UBIA limitation. Real §199A calculations require actual W-2 wages paid and qualified property (UBIA) figures for the wage/UBIA test above the threshold — not collected here, so the non-SSTB result above the threshold is an approximation, not precise. Section 199A was made a permanent part of the tax code by 2025 legislation rather than sunsetting as originally scheduled. Not tax advice — a tax professional should run the actual worksheet for any income near or above the threshold.