QBI Deduction Calculator
Estimate your Section 199A Qualified Business Income deduction for tax year 2025 or 2026. Handles the SSTB phase-out, the W-2 wage limit, and the Idaho state-tax layer. Takes about a minute.
Key Takeaways
- The QBI deduction is a 20% deduction on qualified pass-through income under Section 199A. The One Big Beautiful Bill Act (July 2025) made it permanent and added a $400 minimum starting in 2026.
- Below the income threshold ($201,775 single, $403,500 married filing jointly for 2026), most owners get the full 20% deduction.
- Above the threshold, a W-2 wage limit applies. The deduction cannot exceed the greater of 50% of W-2 wages, or 25% of W-2 wages plus 2.5% of qualified property basis.
- Specified Service Trade or Business (SSTB) owners (health, law, accounting, consulting, financial services, athletics, performing arts) lose the deduction entirely above the upper threshold.
- Idaho conforms to federal taxable income, so the federal QBI deduction also reduces Idaho taxable income at the 5.3% flat rate. That is real state savings on top of the federal benefit.
- S-corp owners exclude their own W-2 wages from QBI. Lower owner salary leaves more QBI eligible for the deduction, but the IRS still requires reasonable compensation.
Your Numbers
Entered for context only; QBI above should already exclude this.
Only matters above the income threshold.
Optional. Leave blank if you don't track this.
Idaho conforms to federal taxable income, so the QBI deduction reduces Idaho tax as well.
Estimated QBI Deduction
$0
Section 199A pass-through deduction
Estimated Federal Tax Savings
$0
Deduction times your estimated federal marginal rate.
Estimated Idaho Tax Savings
$0
Deduction times Idaho's 5.3% flat rate.
| Calculation step | Amount |
|---|---|
| Tentative deduction (20% of QBI) | – |
| After SSTB phase-out ? | – |
| After W-2 wage limit ? | – |
| Taxable-income cap (20% of taxable income) ? | – |
| Final QBI deduction | – |
A note on this estimate: Section 199A is one of the more layered provisions in the Internal Revenue Code. This calculator covers the common path, the SSTB phase-out, the W-2 wage limit, and the overall taxable-income cap. It does not model net capital gains, REIT or PTP dividend components, aggregation elections, loss carryforwards, the new 2026 $400 minimum deduction floor, or state add-backs in non-conforming states. A conversation with your CPA turns the estimate into the real number on your return.
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