Section 199A SSTB QBI Deduction Calculator 2026 β Phase-Out & Strategies
Calculate your QBI deduction as an SSTB owner. Shows exact phase-out amount, tax savings, and strategies to maximize your Section 199A deduction in 2026.
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Net profit from your business (Schedule C, K-1, S-Corp) $
After all deductions including standard deduction ($16,100 single / $32,200 MFJ) $0
QBI Deduction
0%
Phase-Out Applied
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Estimated Tax Savings
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Status
QBI Deduction Calculation Detail
How the Section 199A SSTB Calculator Works
Enter your qualified business income (net profit from your pass-through business), total taxable income (after all deductions), filing status, and whether your business is an SSTB. The calculator applies the 2026 phase-out thresholds and tells you exactly how much of the 20% deduction you can claim.
2026 SSTB Phase-Out Thresholds
Single / MFS / HoH:
Full deduction if taxable income ≤ $191,950
Phase-out: $191,950 – $241,950
No deduction if taxable income ≥ $241,950
Married Filing Jointly:
Full deduction if taxable income ≤ $383,900
Phase-out: $383,900 – $483,900
No deduction if taxable income ≥ $483,900
Phase-out factor = 1 − (taxable income − lower threshold) / phase-out range
QBI Deduction = min(QBI × 20%, taxable income × 20%) × phase-out factor
Full deduction if taxable income ≤ $191,950
Phase-out: $191,950 – $241,950
No deduction if taxable income ≥ $241,950
Married Filing Jointly:
Full deduction if taxable income ≤ $383,900
Phase-out: $383,900 – $483,900
No deduction if taxable income ≥ $483,900
Phase-out factor = 1 − (taxable income − lower threshold) / phase-out range
QBI Deduction = min(QBI × 20%, taxable income × 20%) × phase-out factor
Example
Tax attorney, single, QBI = $150,000, taxable income = $220,000:
Lower threshold: $191,950 | Upper: $241,950 | Range: $50,000
Income above lower: $220,000 − $191,950 = $28,050
Phase-out: $28,050 / $50,000 = 56.1% eliminated
Phase-out factor: 1 − 56.1% = 43.9%
Basic deduction: $150,000 × 20% = $30,000
After phase-out: $30,000 × 43.9% = $13,170
At 24% marginal rate: saves approximately $3,161 in taxes
Lower threshold: $191,950 | Upper: $241,950 | Range: $50,000
Income above lower: $220,000 − $191,950 = $28,050
Phase-out: $28,050 / $50,000 = 56.1% eliminated
Phase-out factor: 1 − 56.1% = 43.9%
Basic deduction: $150,000 × 20% = $30,000
After phase-out: $30,000 × 43.9% = $13,170
At 24% marginal rate: saves approximately $3,161 in taxes
Extended
SSTB vs Non-SSTB Comparison & Strategies
Compare your deduction if classified as SSTB vs non-SSTB, and explore income strategies to stay below phase-out thresholds
See how your deduction compares to a non-SSTB classification, and explore income reduction strategies to stay below or enter the phase-out range.
SSTB vs Non-SSTB Comparison at Various Income Levels
| Taxable Income | SSTB Deduction | Non-SSTB Deduction | Cost of SSTB Status | SSTB Phase-Out |
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Strategies to Maximize Your SSTB Deduction
Frequently Asked Questions
What is the QBI deduction phase-out for SSTBs in 2026?
For Specified Service Trade or Business (SSTB) owners, the 20% QBI deduction is fully available when taxable income is at or below $191,950 (single) or $383,900 (married filing jointly). It phases out ratably over the next $50,000 (single) or $100,000 (MFJ) of income, and is completely eliminated once taxable income exceeds $241,950 (single) or $483,900 (MFJ). These thresholds are indexed for inflation.
What businesses are classified as SSTBs?
Specified Service Trades or Businesses include: health (doctors, dentists, nurses), law, accounting, actuarial science, performing arts, consulting, athletics, financial services (investment advisors, brokers), brokerage services, and any trade or business whose principal asset is the reputation or skill of its employees or owners. Notably, engineering and architecture are NOT SSTBs and retain the full QBI deduction at any income level.
How does the phase-out work for partial deductions?
During the phase-out range, the SSTB deduction is reduced proportionally. The reduction percentage equals (taxable income minus lower threshold) divided by the phase-out range ($50K single / $100K MFJ). For example, if a single filer has taxable income of $216,950 β exactly halfway through the $50,000 phase-out range β their SSTB deduction is reduced by 50%, resulting in only a 10% QBI deduction instead of the full 20%.
Can I avoid SSTB classification through business restructuring?
Possibly, but the IRS has anti-cracking rules that prevent simply splitting an SSTB into separate entities to avoid the classification. However, if your business has both SSTB and non-SSTB activities, and the SSTB portion is less than 10% of gross receipts, the entire business may qualify as non-SSTB. If the SSTB portion is 10%β50% of gross receipts, the non-SSTB portion may separately qualify for the deduction. Consult a tax professional before restructuring.
Does the QBI deduction expire?
The Section 199A QBI deduction was originally scheduled to expire after December 31, 2025. However, the One Big Beautiful Budget Act (OBBBA) made the QBI deduction permanent, eliminating the sunset provision. This means business owners can now plan around the QBI deduction as a permanent feature of the tax code rather than a temporary benefit.