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    QBI §199A Deduction Calculator (2026)

    Made permanent by OBBBA. Calculates the §199A pass-through deduction with the 2026 thresholds, SSTB phase-out, W-2 wage and UBIA limitations, and the 20%-of-taxable-income ceiling.

    Guidance, not advice. This calculator runs the rules as published, it doesn't assess your circumstances. Your actual tax may be affected by factors it doesn't cover (deductions, credits, filing status nuances, state-specific adjustments). Always seek financial or tax advice from a qualified CPA, Enrolled Agent, or tax attorney, or contact the IRS. Read our editorial scope →

    §199A inputs

    Tax year 2026. Thresholds: $197,300 single / $394,600 MFJ (2025 confirmed; 2026 pending IRS confirmation).

    Specified Service Trade or Business

    $

    Net pass-through income from the qualified trade or business.

    $

    Form 1040 line 15 before subtracting the QBI deduction.

    $

    Required for the wage limitation above the threshold.

    $

    Unadjusted basis immediately after acquisition of depreciable property.

    QBI deduction

    W-2 wage / UBIA limit

    §199A deduction

    $18,920

    Effective rate: 18.9% of QBI

    20% of QBI (tentative)
    $20,000
    50% × W-2 wages
    $0
    25% × W-2 + 2.5% × UBIA
    $0
    20% of taxable income (cap)
    $40,000

    Threshold: $197,300 · Full phase-in at $247,300

    Phase-in progress: 5.4%

    Partial wage-limit phase-in: 5.4% of the wage-test reduction applied.

    PTET interaction
    If your state has an elective PTET, entity-level tax payments reduce QBI dollar-for-dollar. Factor this into your PTET election decision — a PTET payment trades a $1 SALT cap workaround against a $0.20 federal QBI deduction loss (at the 20% §199A rate).

    SSTB classification reference (48 trades)

    Definitive list per §199A(d)(2) and Treas. Reg. §1.199A-5(b). The 'reputation or skill' catch-all is narrowly construed — only income from name/likeness, appearances, and endorsements counts.

    Trade / activityStatusReasoning
    Physicians (MD/DO)
    SSTB
    		Health field — direct patient services.
    Dentists, orthodontists
    SSTB
    		Health field.
    Veterinarians
    SSTB
    		Health field per regs.
    Chiropractors
    SSTB
    		Health field.
    Nurses (independent practice)
    SSTB
    		Health field.
    Physical / occupational therapists
    SSTB
    		Health field.
    Psychologists, therapists
    SSTB
    		Health field.
    Pharmacists (compounding pharmacy)
    Non-SSTB
    		Retail pharmacy = non-SSTB; clinical = SSTB.
    Health-club / spa operators
    Non-SSTB
    		Not the provision of medical services.
    Medical-device manufacturers
    Non-SSTB
    		Manufacturing is not SSTB.
    Lawyers, paralegals (own firm)
    SSTB
    		Law SSTB.
    Arbitrators, mediators
    SSTB
    		Law SSTB.
    Court reporters
    Non-SSTB
    		Service is mechanical, not legal advocacy.
    CPAs, EAs, tax preparers
    SSTB
    		Accounting SSTB.
    Bookkeepers
    SSTB
    		Treated as accounting SSTB per regs.
    Actuaries
    SSTB
    		Listed SSTB.
    Actors, musicians, singers, directors
    SSTB
    		Performing arts SSTB.
    Stage / lighting / sound technicians
    Non-SSTB
    		Support services — not performance.
    Broadcasters of others' performances
    Non-SSTB
    		Distribution is not performance.
    Management consultants
    SSTB
    		Consulting SSTB — providing advice.
    Salespeople embedded with product sales
    Non-SSTB
    		Sales tied to goods = non-SSTB.
    IT implementation consultants
    Context
    		SSTB only if advice predominates; deployment work usually non-SSTB.
    Professional athletes
    SSTB
    		Athletics SSTB.
    Coaches & team managers
    SSTB
    		Athletics SSTB.
    Stadium / arena operators
    Non-SSTB
    		Operating a venue is non-SSTB.
    Investment advisors, wealth managers
    SSTB
    		Financial services SSTB.
    Financial planners
    SSTB
    		Financial services SSTB.
    Stockbrokers, dealers (advisory)
    SSTB
    		Financial services SSTB.
    Banks (lending, deposits)
    Non-SSTB
    		Banking specifically excluded from SSTB.
    Insurance agents & brokers
    Non-SSTB
    		Insurance specifically excluded.
    Real estate agents & brokers
    Non-SSTB
    		Real estate not in SSTB list.
    Securities brokers (broker-dealers)
    SSTB
    		Brokerage SSTB.
    Commodities brokers
    Non-SSTB
    		Not 'brokerage services' under §199A regs.
    Investment fund managers (GP fees)
    SSTB
    		Investing & investment management SSTB.
    Investors holding for own account
    Non-SSTB
    		Not a §162 trade or business in most cases.
    Trader funds (securities)
    SSTB
    		Trading SSTB.
    Dealers in commodities / partnership interests
    SSTB
    		Dealing SSTB.
    Celebrity endorsement income
    SSTB
    		Reputation/skill catch-all SSTB.
    Royalties for use of name/likeness
    SSTB
    		Reputation/skill catch-all SSTB.
    Appearance fees
    SSTB
    		Reputation/skill catch-all SSTB.
    Architects (registered)
    Non-SSTB
    		Architecture explicitly carved out — non-SSTB.
    Engineers (licensed PE)
    Non-SSTB
    		Engineering explicitly carved out — non-SSTB.
    Real estate developers
    Non-SSTB
    		Real estate is non-SSTB.
    Software developers (product company)
    Non-SSTB
    		Software products = non-SSTB.
    Restaurants, retailers
    Non-SSTB
    		Goods-based businesses are non-SSTB.
    Manufacturers
    Non-SSTB
    		Manufacturing is non-SSTB.
    Construction trades
    Non-SSTB
    		Construction is non-SSTB.
    Farmers & ranchers
    Non-SSTB
    		Agriculture is non-SSTB; special PTPs/coops follow §199A(g).