QBI deduction calculator
Enter your qualified business income and filing status. The result shows the deduction and the federal income tax it saves.
$15,367 a year
deducted from taxable income, which saves about $3,381 of federal income tax.
California, 2026: $100,000 profit, single filer
| Qualified business income | $100,000 |
| Taxable income before the deduction | $76,835 |
| 20% of qualified business income | $20,000 |
| Cap: 20% of taxable income | $15,367 |
| Deduction | $15,367 |
|---|---|
| Federal income tax it saves | $3,381 |
Taxable income is under the $201,750 threshold, so the full 20% applies. irs.gov, 2026 rates
The limits
Below $201,750 of taxable income ($403,500 married filing jointly) the deduction is 20% of qualified business income, capped at 20% of taxable income. Above it, the deduction phases down to 50% of W-2 wages paid over the next $75,000 ($150,000 joint), and a professional service business phases out to nothing. This calculator does not count the property-based limit. More on the QBI deduction.