One Big Beautiful Bill (OB3) Qualified Business Income Deduction (QBID)

This deduction began in 2018, and was set to expire at the end of 2025.  It has now been made permanent.

The QBID remains 20%, with no substantive changes moving forward.  The Specified Service Business or Trade (SSBT) phaseout numbers will change slightly beginning in 2026, but this phaseout only applies to very select, or specified, professions.

Effective for 2026, the QBID has a minimum of $400 when the aggregate QBI of the taxpayer is $1,000 or greater.  This is a very minor change.