Deductions and rules
What is the qualified business income deduction?
Short answer
The qualified business income (QBI) deduction lets owners of sole proprietorships, LLCs, partnerships, and S-Corps deduct up to 20% of their business profit. For 2026, the full deduction applies under $201,750 of taxable income for single filers and $403,500 for joint filers. Above those amounts, limits can reduce it.
Try the free tax estimator on our homepage to see the QBI deduction on your own numbers.
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