Qualified Business Income Deduction Calculator
Last updated: October 15, 2026
Estimate a simplified QBI deduction using entered income and limitation assumptions.
Estimated QBI deduction
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- QBI percentage amount: —
- Taxable-income percentage cap: —
- Other entered limit: —
On this page
Quick summary: Estimate a simplified QBI deduction using entered income and limitation assumptions.
Read the method, example and limitations
Updated reference sections in this guide are in English.
Guide language: English. Updated October 15, 2026.
What this calculator estimates
Qualified Business Income Deduction Calculator
Inputs and units
Use the units shown for Qualified business income ($), QBI deduction rate (%), Taxable income before QBI deduction ($), Net capital gain including qualified dividends for the QBI cap ($), Eligible active QBI for the 2026 minimum, after confirming eligibility ($), Taxable-income limitation rate (%), Additional limitation already calculated?, Precomputed additional limit, if selected ($). Required fields cannot be blank. Use zero only where that field and the model allow it. Select Calculate after changing a scenario.
Method and assumptions
For this simplified 2026 scenario, compare 20% of eligible QBI with 20% of taxable income after subtracting net capital gain, including qualified dividends for this cap, and an optional additional limit already calculated elsewhere. If the entered eligible active QBI is at least 1,000, apply the 400 minimum instead when it is larger.
Worked example
QBI 100,000, taxable income 100,000 and net capital gain 80,000 give a 4,000 ordinary cap. An eligible active QBI scenario of 1,000 can instead produce the 2026 minimum of 400.
Limitations
This tool does not determine eligibility or compute SSTB, wage/property phase-ins, losses, REIT/PTP components or cooperative reductions. Enter already eligible amounts and any required limitation; active-QBI eligibility must be confirmed separately. For cases outside this scope, use the IRS forms.