New $400 minimum QBI deduction for sellers with at least $1,000 of business income
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New $400 minimum QBI deduction for sellers with at least $1,000 of business income
For tax years beginning after Dec. 31, 2025, the 20% qualified business income (QBI) deduction has a floor. If your QBI from businesses you materially participate in is at least $1,000, the deduction is at least $400. That matters when the regular 20% calculation comes to less than $400, for example with $1,000 to $1,999 of QBI, and both figures are indexed for inflation after 2026. General information, not tax advice: check with a tax pro.
Your net on a $10 / $25 / $50 sale: n/a / n/a / n/a
A deduction floor, not a fee: it lowers taxable income and does not change your net per sale. Example: $1,500 of active QBI gives a 20% deduction of $300, and the minimum raises it to $400.
Source: IRS Rev. Proc. 2025-32 (IR-2025-103) · verified
Cite this
The Reseller Index change tracker, "New $400 minimum QBI deduction for sellers with at least $1,000 of business income," https://resellerindex.com/changes/irs/2026-01-01-irs-qbi-400-minimum-deduction/, verified Oct 14, 2026. Free to reuse with a link (CC BY 4.0).
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