Updated September 29, 2026. Quick answer: The Section 199A qualified business income deduction’s phase-in threshold for 2026 is $201,750 for single filers and $403,500 for joint filers, per IRS Revenue Procedure 2025-32, up from $197,300 and $394,600 in 2025. The One Big Beautiful Bill Act of 2025 made §199A permanent and widened the phase-in band itself starting in 2026, from $50,000 single / $100,000 joint to $75,000 single / $150,000 joint, so the phase-in completes at $276,750 single and $553,500 joint for 2026. No named forecaster has published a 2027 projection for these thresholds as of this page’s last update.
Where a partner finds the pass-through numbers: Schedule K-1 (Form 1065) Boxes and Codes Explained.
QBI phase-in threshold and phase-in-complete amounts, 2025-2026
| Filing status and marker | 2025 | 2026 | Projected 2027 |
|---|---|---|---|
| Single/HOH: phase-in threshold | $197,300 | $201,750 | Not yet projected |
| Single/HOH: phase-in complete | $247,300 | $276,750 | Not yet projected |
| Joint: phase-in threshold | $394,600 | $403,500 | Not yet projected |
| Joint: phase-in complete | $494,600 | $553,500 | Not yet projected |
A wider band, a new minimum deduction, and why 2026 jumped
26 U.S.C. §199A(e)(2) indexes the phase-in threshold for inflation every year; the 2025 and 2026 dollar thresholds above come directly from IRS Revenue Procedure 2024-40 and Revenue Procedure 2025-32. Separately, the One Big Beautiful Bill Act of 2025 (Public Law 119-21, §70105(a)(1) and (a)(2)) widened the phase-in band itself, the distance between the threshold and the point where the deduction is fully phased in or out for specified service trades or businesses, from $50,000 single/$100,000 joint to $75,000 single/$150,000 joint, effective for tax years beginning after December 31, 2025. That is why the 2026 phase-in-complete figure jumps by more than the usual cost-of-living adjustment: part of the increase is the wider band, not just inflation. OBBBA §70105 also made §199A permanent (it had been scheduled to expire after 2025 under the original Tax Cuts and Jobs Act) and added a new minimum deduction of $400 for taxpayers with at least $1,000 of aggregate qualified business income from an active trade or business.
The 2027 gap: nobody has projected this one yet
Neither Milliman’s July 2026 IRS limits forecast nor the Bloomberg Tax and Thomson Reuters Checkpoint 2027 projection reports published around September 11, 2026 include a §199A threshold line item. That is a genuine gap in the current forecasting landscape, not an oversight on this page’s part; this page will be updated with a 2027 projection the first time a named forecaster publishes one, and with the official figure the day the IRS issues its 2027 Revenue Procedure.
The rates are already settled. Only the thresholds are still moving.
That is enough to plan against. A Roth conversion, a deferred bonus or a gain taken in 2027 can be sized today against the 10%, 12%, 22%, 24%, 32%, 35% and 37% rates the statute already fixes, without waiting for the Revenue Procedure. If you want someone to price that decision against your own income rather than a projection, this is the point to ask.
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Sources
The qualified business income thresholds on this page were checked against IRS Revenue Procedures 2025-32 (2026 amounts) and 2024-40 (2025 amounts) and 26 U.S.C. §199A on September 29, 2026.
- 26 U.S.C. §199A, via Cornell Law School's Legal Information Institute: the statutory phase-in mechanism, the OBBBA-widened $75,000/$150,000 band (§70105(a)(1) and (a)(2)), the new permanence provision, and the $400 minimum deduction, read directly from the codified statute.
- IRS Revenue Procedure 2025-32, section 4.26: the exact 2026 threshold ($201,750/$403,500) and phase-in-complete ($276,750/$553,500) dollar amounts, read directly from the PDF's text.
- IRS Revenue Procedure 2024-40, section 2.27: the exact 2025 threshold ($197,300/$394,600) and phase-in-complete ($247,300/$494,600) dollar amounts, read directly from the PDF's text.
- 26 U.S.C. §199A (uscode.house.gov): the statute that defines these figures.
Statute: 26 U.S.C. §199A, phase-in band widened by the One Big Beautiful Bill Act of 2025 (Public Law 119-21), §70105.
Related
General information, not tax or legal advice. This page will be updated with the official 2027 figure the day it is announced.
The QBI information an estate or trust passes to you on Schedule K-1: Box 14 code I.