What is the 2026 QBI deduction threshold for married filing jointly?

For taxable years beginning in 2026 the threshold amount under § 199A(e) for married individuals filing joint returns is $403,500. Rev. Proc. 2025-32 states it in the qualified business income item, alongside a separate and larger phase-in range amount of $553,500 for the same filing status. The threshold is the point the § 199A rules key off; the revenue procedure sets the figure without restating what happens above it.

What is the 2026 QBI threshold for a single filer?

$201,750. Rev. Proc. 2025-32 groups single filers under all other returns, which carries a threshold amount of $201,750 under § 199A(e) for taxable years beginning in 2026. That row also carries its own phase-in range amount of $276,750, which is larger than the threshold. A single filer therefore works from a lower threshold than the $403,500 that applies to a joint return.

Did the QBI threshold go up for 2026?

Yes. The threshold amount for married individuals filing joint returns moved to $403,500 for taxable years beginning in 2026, where Rev. Proc. 2024-40 had stated $394,600 for 2025. The all other returns threshold moved to $201,750 from $197,300. Both are ordinary inflation adjustments under § 1(f); the phase-in range amounts in the same table moved as well, to $553,500 and $276,750.

What is the QBI threshold for married filing separately in 2026?

$201,775, with a phase-in range amount of $276,775. Rev. Proc. 2025-32 gives married individuals filing separate returns a row of their own in the qualified business income table, and for 2026 that row is not the same figure as the $201,750 and $276,750 shown for all other returns - the first year in this record's history the two have differed.

What is the QBI threshold for head of household in 2026?

Rev. Proc. 2025-32 does not give heads of household a row of their own. The qualified business income table has three rows: married individuals filing joint returns, married individuals filing separate returns, and all other returns. A head of household falls in all other returns, so the threshold amount for taxable years beginning in 2026 is $201,750 and the phase-in range amount is $276,750, the ones stated in that same row.

Is there a minimum QBI deduction for 2026?

Yes. Rev. Proc. 2025-32 records that the One, Big, Beautiful Bill Act amended § 199A(i) to add a minimum deduction of $400, and to require a taxpayer to have at least $1,000 of qualified business income to be eligible for the deduction at all, effective for taxable years beginning after December 31, 2025. The procedure notes both dollar amounts are adjusted for inflation for taxable years beginning after 2026.

What is the difference between the QBI threshold and the phase-in range amount?

They are two separate columns of the same table. The threshold amount is set under § 199A(e); the phase-in range amount is set under § 199A(b) and § 199A(d). For every filing status Rev. Proc. 2025-32 lists, the phase-in range amount is the larger of the two, so it marks the far end of a band that opens at the threshold rather than a second, competing cut-off.

Which tax year do the 2026 QBI thresholds apply to?

Rev. Proc. 2025-32 states the qualified business income amounts for taxable years beginning in 2026, and its effective date section applies the 2026 adjusted items to taxable years beginning in 2026. Qualified business income is not among the items routed to the calendar year rule instead, so $403,500 and $201,750 follow the taxpayer's taxable year rather than the calendar year.

QBI Deduction Threshold 2026

Name: QBI Deduction Threshold
Creator: IRS

Current year

For 2026, the QBI Deduction Threshold figures are $403,500 (Threshold, joint filers), $201,750 (Threshold, single filers), $201,775 (Threshold, married filing separately) and 10 more figures below.

Minimum deduction$400

Minimum QBI to qualify for the minimum deduction$1,000

QBI component rate20%

Taxable income limit rate20%

W-2 wage limit rate50% of W-2 wages paid by the qualified trade or business50%

Alternative W-2 wage rate25% of W-2 wages plus25%

Qualified property rate2.5% of the UBIA of qualified property2.5%

Item	Joint filers	Single filers	Married filing separately
Threshold	$403,500	$201,750	$201,775
Phase-in range top	$553,500	$276,750	$276,775

Effective 2026-01-01Source: Rev. Proc. 2025-32 (IRS)Verified 2026-09-04

QBI component rate, Taxable income limit rate, W-2 wage limit rate, Alternative W-2 wage rate, Qualified property rateSource: 2025 Instructions for Form 8995-A, Deduction for Qualified Business Income (IRS)Verified 2026-09-04

Compared with 2025

Item	2025	2026	Change
Threshold, joint filers	$394,600	$403,500	+$8,900 (+2.3%)
Threshold, single filers	$197,300	$201,750	+$4,450 (+2.3%)
Threshold, married filing separately	$197,300	$201,775	+$4,475 (+2.3%)
Phase-in range top, joint filers	$494,600	$553,500	+$58,900 (+11.9%)
Phase-in range top, single filers	$247,300	$276,750	+$29,450 (+11.9%)
Phase-in range top, married filing separately	$247,300	$276,775	+$29,475 (+11.9%)
Minimum deduction	-¹	$400	-
Minimum QBI to qualify for the minimum deduction	-²	$1,000	-
QBI component rate	20%	20%	+0% (+0.0%)
Taxable income limit rate	20%	20%	+0% (+0.0%)
W-2 wage limit rate	50%	50%	+0% (+0.0%)
Alternative W-2 wage rate	25%	25%	+0% (+0.0%)
Qualified property rate	2.5%	2.5%	+0% (+0.0%)

The OBBBA added this minimum deduction at § 199A(i), effective for taxable years beginning after December 31, 2025.
The OBBBA added this eligibility floor at § 199A(i), effective for taxable years beginning after December 31, 2025.

How far apart these are

Threshold
Phase-in range top

$201,750$553,500

One dot per column of the table, on a scale running from the smallest of these amounts to the largest. The scale is logarithmic, so that the amounts crowded at the low end stay far enough apart to read. The table states which dot is which.

Who it applies to

The threshold amount matters to a taxpayer claiming the qualified business income deduction under § 199A for a taxable year beginning in 2026, and which figure applies turns on filing status. Rev. Proc. 2025-32 puts married individuals filing joint returns on $403,500 and puts all other returns, including a single filer and a head of household, on $201,750; married individuals filing separate returns have their own figure, $201,775, in the same table. The revenue procedure supplies the amounts and nothing else. The rules in § 199A that use the threshold and the phase-in range, and the new minimum deduction rules the procedure describes under § 199A(i), are in the Code section rather than in this document.

What changed this year, and why

For taxable years beginning in 2026, Rev. Proc. 2025-32 sets the threshold amount under § 199A(e) at $403,500 for married individuals filing joint returns, up from the $394,600 Rev. Proc. 2024-40 set for 2025, and at $201,750 for all other returns, up from $197,300. Married individuals filing separate returns are listed in their own row with their own threshold amount, $201,775, which for 2026 is not the same figure as the $201,750 all other returns row - the first year in this record's history the two have differed. Each row also carries a phase-in range amount under § 199A(b) and § 199A(d) that is larger than the threshold beside it: $553,500 for joint returns, $276,750 for all other returns, and $276,775 for married filing separately. Separately, Rev. Proc. 2025-32 records that the One, Big, Beautiful Bill Act amended § 199A(i) to add a minimum deduction of $400, and to require a taxpayer to have at least $1,000 of qualified business income to be eligible for the deduction, effective for taxable years beginning after December 31, 2025.

Common questions

What is the 2026 QBI deduction threshold for married filing jointly?: For taxable years beginning in 2026 the threshold amount under § 199A(e) for married individuals filing joint returns is $403,500. Rev. Proc. 2025-32 states it in the qualified business income item, alongside a separate and larger phase-in range amount of $553,500 for the same filing status. The threshold is the point the § 199A rules key off; the revenue procedure sets the figure without restating what happens above it.
What is the 2026 QBI threshold for a single filer?: $201,750. Rev. Proc. 2025-32 groups single filers under all other returns, which carries a threshold amount of $201,750 under § 199A(e) for taxable years beginning in 2026. That row also carries its own phase-in range amount of $276,750, which is larger than the threshold. A single filer therefore works from a lower threshold than the $403,500 that applies to a joint return.
Did the QBI threshold go up for 2026?: Yes. The threshold amount for married individuals filing joint returns moved to $403,500 for taxable years beginning in 2026, where Rev. Proc. 2024-40 had stated $394,600 for 2025. The all other returns threshold moved to $201,750 from $197,300. Both are ordinary inflation adjustments under § 1(f); the phase-in range amounts in the same table moved as well, to $553,500 and $276,750.
What is the QBI threshold for married filing separately in 2026?: $201,775, with a phase-in range amount of $276,775. Rev. Proc. 2025-32 gives married individuals filing separate returns a row of their own in the qualified business income table, and for 2026 that row is not the same figure as the $201,750 and $276,750 shown for all other returns - the first year in this record's history the two have differed.
What is the QBI threshold for head of household in 2026?: Rev. Proc. 2025-32 does not give heads of household a row of their own. The qualified business income table has three rows: married individuals filing joint returns, married individuals filing separate returns, and all other returns. A head of household falls in all other returns, so the threshold amount for taxable years beginning in 2026 is $201,750 and the phase-in range amount is $276,750, the ones stated in that same row.
Is there a minimum QBI deduction for 2026?: Yes. Rev. Proc. 2025-32 records that the One, Big, Beautiful Bill Act amended § 199A(i) to add a minimum deduction of $400, and to require a taxpayer to have at least $1,000 of qualified business income to be eligible for the deduction at all, effective for taxable years beginning after December 31, 2025. The procedure notes both dollar amounts are adjusted for inflation for taxable years beginning after 2026.
What is the difference between the QBI threshold and the phase-in range amount?: They are two separate columns of the same table. The threshold amount is set under § 199A(e); the phase-in range amount is set under § 199A(b) and § 199A(d). For every filing status Rev. Proc. 2025-32 lists, the phase-in range amount is the larger of the two, so it marks the far end of a band that opens at the threshold rather than a second, competing cut-off.
Which tax year do the 2026 QBI thresholds apply to?: Rev. Proc. 2025-32 states the qualified business income amounts for taxable years beginning in 2026, and its effective date section applies the 2026 adjusted items to taxable years beginning in 2026. Qualified business income is not among the items routed to the calendar year rule instead, so $403,500 and $201,750 follow the taxpayer's taxable year rather than the calendar year.

Every amount on this page is a published figure rather than yours. The QBI deduction on any other return takes the number you enter and works it out against them, showing which published figure it used.

Above the threshold, the wage and property limits phase in

Whether the wage and property limits touch your deduction at all is decided by taxable income figured before the deduction itself. At or below the threshold - $403,500 on a joint return and $201,750 on any other return for 2026 - no reduction applies, and the deduction is simply a share of qualified business income. Above the threshold the limits do not arrive all at once: they are phased in across a band of income, so a business just over the line keeps most of what the limits would otherwise take away. The band runs to $553,500 on a joint return and to $276,750 on any other return, and once taxable income passes the top of it the full reduction applies. This is why two businesses with identical income and wages can end with different deductions: what separates them is where the owner’s taxable income sits in that band.

The partial or full reduction to QBI is determined by your taxable income. If your taxable income (before the QBI deduction) is: • At or below the threshold, you don’t need to reduce your QBI;
2025 Instructions for Form 8995-A, Deduction for Qualified Business Income (IRS)

What the reduction is measured against

Above the threshold the deduction stops being a plain share of profit and becomes a test of payroll and capital. For each trade or business the qualified business income taken into account is capped at the greater of two amounts: 50% of the W-2 wages the business paid, or 25% of those wages plus 2.5% of the unadjusted basis immediately after acquisition of its qualified property. A business with employees is measured on the first of these; one that owns substantial depreciable property but pays little in wages is usually better served by the second. A business with neither wages nor qualified property has nothing to measure and can lose the deduction entirely once income is above the phase-in band. Below the threshold none of this applies, which is why the wage and property figures matter only to owners whose taxable income has passed $201,750, or $403,500 on a joint return.

your QBI for each of your trades or businesses may be partially or fully reduced to the greater of 50% of W-2 wages paid by the qualified trade or business, or 25% of W-2 wages plus 2.5% of the UBIA of qualified property from the qualified trade or business.
2025 Instructions for Form 8995-A, Deduction for Qualified Business Income (IRS)

Specified service businesses above the range

A specified service trade or business - health, law, accounting, consulting, athletics, financial services, and any trade or business whose principal asset is the reputation or skill of its owners or employees - is treated differently at the top of the income scale. Below the threshold it is a qualified trade or business like any other. Inside the phase-in band only part of its income, wages and property count, in the same proportion the band has been crossed. Above the top of the band it is not a qualified trade or business at all, so none of its income supports a deduction, however much it pays in wages. For 2026 that cut-off is $276,750 of taxable income before the deduction, or $553,500 on a joint return.

Specified service trades or businesses (SSTBs) aren’t qualified trades or businesses for taxpayers with taxable income, before the QBI deduction, above the threshold and phased-in range.
2025 Instructions for Form 8995-A, Deduction for Qualified Business Income (IRS)

The deduction is also capped by taxable income

There is a second ceiling that applies to everyone, whatever their income. After the qualified business income component and the REIT and publicly traded partnership component are added together, the deduction cannot be more than 20% of taxable income figured before the deduction and reduced by net capital gain, increased by any qualified dividends. For a taxpayer whose income is mostly business profit this rarely binds. It bites where taxable income is small relative to business income - a large itemized or standard deduction, or a loss elsewhere on the return - and where a large part of income is long-term capital gain or qualified dividends, because that part is removed before the ceiling is worked out. The result is that the deduction can be smaller than the size of the business alone would suggest.

However, the deduction is limited to the lesser of this amount or 20% of your taxable income, calculated before the QBI deduction, minus your net capital gain (increased by any qualified dividends).
2025 Instructions for Form 8995-A, Deduction for Qualified Business Income (IRS)

Choosing to aggregate your businesses locks you in for later years

Under IRS rules for the 2026 QBI deduction, if you choose to aggregate multiple trades or businesses, you must continue reporting them together in all future years. The only exception is if a significant change in facts and circumstances occurs that disqualify the aggregation. You must complete Schedule B (Form 8995-A) each year to show your trade or business aggregations, and you must include any aggregation of a related party entity in which you hold a direct or indirect interest. Failing to disclose aggregated trades or businesses may cause them to be disaggregated by the IRS. This consistency requirement prevents taxpayers from reshuffling their business groupings year to year to maximize their deduction; once you set an aggregation, it stays in place unless a material change forces you to break it apart.

Your aggregations must be reported consistently for all subsequent years, unless there is a significant change in facts and circumstances that disqualify the aggregation.
2025 Instructions for Form 8995-A, Deduction for Qualified Business Income (IRS)

Crossing the threshold changes which form you must file

For the 2026 tax year, the IRS requires taxpayers with taxable income above certain thresholds to use Form 8995-A to figure their QBI deduction. The threshold is $403,500 for married filing jointly and $201,750 for all other returns. If your taxable income before the QBI deduction exceeds these amounts, or if you are a patron in a specified agricultural or horticultural cooperative, you must use the more detailed Form 8995-A. Otherwise, use Form 8995, Qualified Business Income Deduction Simplified Computation, to figure your QBI deduction. The simplified form is available to taxpayers below the threshold who do not need the complex calculations required for higher-income filers or cooperative patrons.

Otherwise, use Form 8995, Qualified Business Income Deduction Simplified Computation, to figure your QBI deduction.
2025 Instructions for Form 8995-A, Deduction for Qualified Business Income (IRS)

A loss year does not just vanish, it reduces next year's deduction

When a taxpayer's qualified business income deductions exceed their qualified business income in a given year, the resulting net loss does not simply disappear. Instead, the loss carries forward to reduce QBI in future tax years. The carryforward is reported on Schedule C (Form 8995-A), line 2, or Form 8995, line 3, in the next tax year. Importantly, this carryforward does not affect the deductibility of the loss for purposes of any other provisions of the Internal Revenue Code; it only reduces the QBI component of the deduction in later years.

This amount will offset QBI in subsequent tax years regardless of whether it is reported and whether the trade or business that generated the loss is still in existence.
2025 Instructions for Form 8995-A, Deduction for Qualified Business Income (IRS)

The self-employment tax and health insurance deductions you take elsewhere still shrink QBI here

When calculating qualified business income for the 2026 tax year, taxpayers must reduce their QBI by certain deductions claimed elsewhere on their return. To figure the total amount of QBI, you must consider all items that are attributable to the trade or business. This includes, but isn't limited to, unreimbursed partnership expenses, business interest expense, deductible part of self-employment tax, self-employment health insurance deduction, and contributions to qualified retirement plans. These deductions, while taken on other parts of the tax return, still reduce the amount of income that qualifies for the QBI deduction. This prevents taxpayers from claiming both the full business income for the QBI deduction and these separate deductions without accounting for their impact on business income.

This includes, but isn’t limited to, unreimbursed partnership expenses, business interest expense, deductible part of self-employment tax, self-employment health insurance deduction, and contributions to qualified retirement plans.
2025 Instructions for Form 8995-A, Deduction for Qualified Business Income (IRS)

Your own S corporation salary or partnership guaranteed payment is not QBI

The IRS list of items that are excluded from qualified business income specifically names amounts received as reasonable compensation from an S corporation. This means that the salary an S corporation shareholder-employee draws from the business, which is reported on Form W-2 and subject to withholding, is treated as wage income and is not part of the qualified business income that feeds into the qualified business income deduction. Similarly, guaranteed payments made to a partner for services or the use of capital, and payments made to a partner for services other than in a partner capacity under section 707(a), are also excluded from qualified business income. The policy behind these exclusions is to prevent the same economic activity from generating a deduction both as wages or guaranteed payments subject to employment taxes and as qualified business income. As a result, an S corporation shareholder must take a reasonable salary - which reduces the corporation's pass-through income - before any remaining qualified business income can be calculated, and a partner receiving a guaranteed payment must exclude that amount from the qualified business income base entirely.

QBI doesn’t include any of the following. • Items that aren’t properly includible in income. • Income that isn’t effectively connected with the conduct of a trade or business within the United States (go to IRS.gov/ECI). • Wage income (except “Statutory Employees” where Form W-2, box 13, is checked). • Amounts received as reasonable compensation from an S corporation. • Amounts received as guaranteed payments. • Amounts received as payments by a partner for services other than in a capacity as a partner.
2025 Instructions for Form 8995-A, Deduction for Qualified Business Income (IRS)

How each figure was verified

Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.

Rev. Proc. 2025-32 (IRS)

Threshold, joint filers: Married Individuals Filing Joint Returns $403,500 $553,500
Threshold, single filers: All Other Returns $201,750 $276,750
Threshold, married filing separately: Married Individuals Filing Separate Returns $201,775
Phase-in range top, joint filers: Married Individuals Filing Joint Returns $403,500 $553,500
Phase-in range top, single filers: All Other Returns $201,750 $276,750
Phase-in range top, married filing separately: Married Individuals Filing Separate Returns $201,775 $276,775
Minimum deduction: Section 70105 of the OBBBA amended § 199A(i) to add a minimum deduction of $400.
Minimum QBI to qualify for the minimum deduction: a taxpayer will be required to have a minimum of $1,000 of qualified business income to be eligible for the deduction, effective for taxable years beginning after December 31, 2025.

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2025 Instructions for Form 8995-A, Deduction for Qualified Business Income (IRS)

QBI component rate: Your QBI component is generally 20% of your QBI from your domestic trades or businesses.
Taxable income limit rate: However, the deduction is limited to the lesser of this amount or 20% of your taxable income, calculated before the QBI deduction, minus your net capital gain (increased by any qualified dividends).
W-2 wage limit rate: your QBI for each of your trades or businesses may be partially or fully reduced to the greater of 50% of W-2 wages paid by the qualified trade or business, or 25% of W-2 wages plus 2.5% of the UBIA of qualified property from the qualified trade or business.
Alternative W-2 wage rate: your QBI for each of your trades or businesses may be partially or fully reduced to the greater of 50% of W-2 wages paid by the qualified trade or business, or 25% of W-2 wages plus 2.5% of the UBIA of qualified property from the qualified trade or business.
Qualified property rate: your QBI for each of your trades or businesses may be partially or fully reduced to the greater of 50% of W-2 wages paid by the qualified trade or business, or 25% of W-2 wages plus 2.5% of the UBIA of qualified property from the qualified trade or business.

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By year

Every published year

9 years on record, 2026 back to 2018. Each year links to its own page, its own document and its own verification date.

Threshold, joint filers

Oldest year at the left. Every line spans the same run of years, with a tick under each year it has a figure for, so a line that starts late is a column the law added late. The vertical axis is scaled to the values plotted rather than to zero, so a line shows the shape of the change and not the size of the amount. The table states every value.

Year	Threshold, joint filers	Threshold, single filers	Threshold, married filing separately	Phase-in range top, joint filers	Phase-in range top, single filers	Phase-in range top, married filing separately	Minimum deduction	Minimum QBI to qualify for the minimum deduction	QBI component rate	Taxable income limit rate	W-2 wage limit rate	Alternative W-2 wage rate	Qualified property rate
2026	$403,500	$201,750	$201,775	$553,500	$276,750	$276,775	$400	$1,000	20%	20%	50%	25%	2.5%
2025	$394,600	$197,300	$197,300	$494,600	$247,300	$247,300	-¹	-²	20%	20%	50%	25%	2.5%
2024	$383,900	$191,950	$191,950	$483,900	$241,950	$241,950	-¹	-²	20%	20%	50%	25%	2.5%
2023	$364,200	$182,100	$182,100	$464,200	$232,100	$232,100	-¹	-²	20%	20%	50%	25%	2.5%
2022	$340,100	$170,050	$170,050	$440,100	$220,050	$220,050	-¹	-²	20%	20%	50%	25%	2.5%
2021	$329,800	$164,900	$164,925	$429,800	$214,900	$214,925	-¹	-²	20%	20%	50%	25%	2.5%
2020	$326,600	$163,300	$163,300	$426,600	$213,300	$213,300	-¹	-²	20%	20%	50%	25%	2.5%
2019	$321,400	$160,700	$160,725	$421,400	$210,700	$210,725	-¹	-²	20%	20%	50%	25%	2.5%
2018	$315,000	$157,500	$157,500	$415,000	$207,500	$207,500	-¹	-²	20%	20%	-	-	-

The OBBBA added this minimum deduction at § 199A(i), effective for taxable years beginning after December 31, 2025.
The OBBBA added this eligibility floor at § 199A(i), effective for taxable years beginning after December 31, 2025.

Download every year as a csv. One row per published figure, each carrying the document it was read from and the date it was checked.