2026 QBI Deduction Threshold

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 a separately stated figure 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, which for 2026 is not the same figure as the all other returns row. Each row also carries a phase-in range amount under § 199A(b) and § 199A(d) that is larger than the threshold beside it. Separately, Rev. Proc. 2025-32 records that the One, Big, Beautiful Bill Act amended § 199A(i) to add a minimum deduction and a minimum amount of qualified business income a taxpayer must have to be eligible, 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 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, 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.

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

Rev. Proc. 2025-32 gives married individuals filing separate returns a row of their own in the qualified business income table, with its own threshold amount and its own phase-in range amount. For 2026 that threshold is not the same figure as the $201,750 shown for all other returns, so a separate filer should read the married filing separately row directly rather than assuming the two match.

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 the one stated in that same row.

Is there a minimum QBI deduction for 2026?

Rev. Proc. 2025-32 records that the One, Big, Beautiful Bill Act amended § 199A(i) to add a minimum deduction, and to require a taxpayer to have a minimum amount of qualified business income to be eligible for the deduction at all, effective for taxable years beginning after December 31, 2025. The procedure states both dollar amounts in that item and notes they 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 threshold headroom takes the number you enter and works it out against them, showing which published figure it used.