Published

May 21, 2025

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In 2017, Congress passed a permanent reduction to the corporate income tax rate from 35% to 21% as part of the Tax Cuts and Jobs Act. To ensure that pass-through businesses like sole proprietorships, partnerships, and S corporations weren’t put at a tax disadvantage relative to C corporations, Congress created a 20% deduction for qualified business income (QBI).  

This deduction, codified at section 199A of the Internal Revenue Code, effectively operates as a rate reduction for pass-through businesses, which currently make up over 95% of all U.S. businesses. Unlike the permanent reduction for C corporations, however, the 20% QBI deduction is scheduled to expire at the end of 2025. 

One of the proposals included in House Republicans’ “One Big Beautiful Bill Act” would, among other things, permanently extend the QBI deduction and increase it from 20% to 23%. As a result, small business owners will have less of their small-business income subject to tax, which means they will have more money to reinvest into their businesses and communities. 

The following table illustrates the business income that would not be taxed if the QBI deduction were increased from 20% to 23%. Use the search box to find your state or Congressional district.

State and Congressional DistrictNumber of Returns Claiming 20% QBI DeductionEstimated Increase in QBI Deduction Claimed Under 23% Deduction
Alabama264,730$350,184,150
AL-145,370$57,244,800
AL-231,310$37,716,900
AL-332,430$38,395,350
AL-431,520$40,684,350
AL-546,780$55,711,650
AL-656,380$97,155,300
AL-720,940$23,275,800
Alaska58,570$68,515,800
Arizona505,520$627,858,750
AZ-143,470$40,264,050
AZ-255,070$45,787,200
AZ-332,180$27,487,800
AZ-452,610$52,656,300
AZ-574,970$110,588,400
AZ-689,330$169,810,050
AZ-733,450$26,688,300
AZ-863,420$65,458,200
AZ-961,020$89,118,450
Arkansas170,450$209,783,250
AR-135,350$41,782,200
AR-248,620$64,547,100
AR-356,330$73,958,850
AR-430,150$29,495,100
California3,080,140$3,801,017,250
CA-146,440$48,656,850
CA-284,320$115,405,650
CA-343,110$45,193,800
CA-471,560$95,003,250
CA-560,750$74,344,200
CA-645,100$36,903,600
CA-757,250$58,785,900
CA-832,330$26,395,200
CA-939,680$42,991,200
CA-1037,430$48,259,050
CA-1183,040$104,299,200
CA-12107,450$95,910,600
CA-1381,360$64,082,400
CA-1487,980$85,919,100
CA-1574,640$67,670,250
CA-1624,790$24,806,850
CA-1785,370$46,858,800
CA-18109,850$131,407,500
CA-1956,860$53,172,300
CA-2051,860$69,698,100
CA-2117,660$22,173,750
CA-2241,690$67,590,000
CA-2333,760$37,521,150
CA-2468,770$99,440,100
CA-2548,730$52,181,850
CA-2661,770$87,569,550
CA-2778,870$101,834,700
CA-2885,320$121,731,150
CA-2941,440$26,759,550
CA-3087,470$148,846,200
CA-3136,050$43,419,000
CA-3238,310$35,189,100
CA-33117,560$309,125,250
CA-3442,070$36,921,000
CA-3531,610$22,717,350
CA-3645,070$42,819,300
CA-3766,280$80,796,000
CA-3837,130$31,577,850
CA-3966,290$101,370,450
CA-4024,590$21,906,300
CA-4130,500$25,239,900
CA-4248,640$57,942,450
CA-4342,930$32,297,400
CA-4425,650$15,788,250
CA-4592,240$141,903,600
CA-4631,790$29,041,650
CA-4748,740$48,786,300
CA-4883,710$197,355,600
CA-4986,050$170,948,400
CA-5057,640$66,165,900
CA-5128,380$18,686,250
CA-5292,180$115,542,000
CA-5360,080$54,066,150
Colorado589,300$682,530,900
CO-196,720$110,328,600
CO-2110,740$140,382,600
CO-370,710$95,711,400
CO-483,160$105,736,200
CO-568,270$65,939,550
CO-683,620$95,786,250
CO-776,080$68,646,300
Connecticut318,750$353,090,100
CT-155,180$51,155,850
CT-256,560$56,302,650
CT-353,490$47,931,750
CT-491,420$130,079,550
CT-562,100$67,620,300
Delaware75,440$75,441,450
District of Columbia71,420$52,655,550
Florida1,870,090$3,097,536,300
FL-162,110$88,450,950
FL-246,350$58,944,600
FL-346,470$51,673,950
FL-488,630$135,924,300
FL-530,410$25,881,900
FL-662,630$81,503,250
FL-766,910$100,073,700
FL-867,770$83,761,200
FL-963,180$60,872,850
FL-1067,690$91,372,200
FL-1162,590$48,223,800
FL-1263,860$72,641,850
FL-1365,190$104,150,400
FL-1468,660$110,551,650
FL-1551,660$70,708,350
FL-1696,470$157,543,800
FL-1764,440$69,612,150
FL-1889,720$186,482,700
FL-19103,220$282,571,350
FL-2047,440$45,052,650
FL-2192,300$255,290,850
FL-2298,520$266,127,000
FL-2382,980$179,912,250
FL-2452,010$60,835,950
FL-2575,220$90,787,650
FL-2665,270$85,162,200
FL-2788,390$233,422,800
Georgia720,190$875,069,100
GA-142,610$55,289,100
GA-225,810$24,709,500
GA-346,160$53,726,250
GA-443,970$29,070,900
GA-560,780$69,649,050
GA-695,140$144,077,550
GA-779,910$90,456,600
GA-832,640$37,540,050
GA-958,440$70,997,400
GA-1051,560$66,692,100
GA-1174,770$123,376,500
GA-1233,890$39,860,700
GA-1339,770$30,400,350
GA-1434,740$39,223,050
Hawaii106,550$110,084,700
HI-155,150$53,784,900
HI-251,400$56,299,800
Idaho148,620$231,955,050
ID-180,600$128,113,950
ID-268,020$103,841,100
Illinois1,013,580$1,153,787,850
IL-137,050$32,528,400
IL-227,150$19,764,450
IL-353,060$58,873,500
IL-436,100$22,022,100
IL-585,770$93,819,900
IL-689,080$134,342,400
IL-758,520$58,116,000
IL-856,390$51,312,750
IL-990,650$110,710,950
IL-1073,050$155,223,150
IL-1152,590$46,585,800
IL-1238,960$28,531,200
IL-1346,460$45,216,300
IL-1471,390$81,476,700
IL-1550,520$57,224,850
IL-1648,570$53,123,550
IL-1736,720$32,810,850
IL-1861,550$72,105,000
Indiana447,790$593,238,300
IN-141,970$46,936,200
IN-245,460$72,574,800
IN-354,430$88,264,200
IN-449,770$53,235,150
IN-580,160$140,596,050
IN-643,030$47,787,900
IN-737,930$29,881,650
IN-845,300$54,232,200
IN-949,740$59,730,150
Iowa265,790$344,619,000
IA-163,780$84,519,600
IA-258,600$64,038,900
IA-373,710$91,677,150
IA-469,700$104,383,350
Kansas231,140$290,756,100
KS-156,020$66,141,450
KS-246,300$45,850,650
KS-377,700$116,299,350
KS-451,120$62,464,650
Kentucky253,040$291,063,000
KY-137,290$40,299,300
KY-242,560$46,188,750
KY-352,080$58,391,700
KY-450,610$61,614,900
KY-521,410$21,411,000
KY-649,090$63,157,350
Louisiana256,180$354,149,400
LA-162,400$94,631,550
LA-236,290$31,253,850
LA-343,560$66,296,250
LA-432,290$41,124,600
LA-531,320$40,521,000
LA-650,320$80,322,150
Maine113,580$128,281,650
ME-172,770$81,793,350
ME-240,810$46,488,300
Maryland491,440$484,088,100
MD-161,800$71,841,300
MD-245,920$31,066,200
MD-373,000$81,371,700
MD-448,530$40,178,250
MD-551,080$40,285,800
MD-667,290$65,428,350
MD-750,190$53,707,350
MD-893,630$100,209,150
Massachusetts676,150$771,204,600
MA-151,080$57,214,500
MA-264,380$73,608,450
MA-367,720$64,721,550
MA-487,200$112,487,400
MA-599,570$119,648,250
MA-683,950$105,797,700
MA-762,900$48,465,450
MA-880,230$93,632,400
MA-979,120$95,628,900
Michigan695,560$859,063,800
MI-152,260$58,078,650
MI-251,810$73,039,800
MI-355,370$86,753,100
MI-441,850$45,416,550
MI-533,380$35,198,400
MI-649,740$66,319,500
MI-746,290$45,059,700
MI-862,760$72,439,500
MI-954,500$66,226,050
MI-1054,420$67,940,550
MI-1177,510$122,051,700
MI-1250,350$48,560,250
MI-1323,440$17,498,250
MI-1441,880$54,481,800
Minnesota509,460$650,605,650
MN-157,800$66,215,400
MN-267,450$77,213,850
MN-385,060$134,438,550
MN-464,050$76,165,050
MN-567,520$60,044,400
MN-660,770$90,685,200
MN-760,270$92,925,150
MN-846,540$52,918,050
Mississippi137,480$165,012,000
MS-136,510$44,099,850
MS-224,760$25,187,250
MS-340,380$56,952,300
MS-435,830$38,772,600
Missouri432,210$480,524,100
MO-138,060$25,744,200
MO-293,260$133,750,200
MO-358,790$58,617,750
MO-449,880$51,382,050
MO-548,320$39,649,350
MO-657,730$62,024,850
MO-750,790$71,071,350
MO-835,380$38,284,350
Montana105,700$152,506,800
Nebraska167,800$261,997,500
NE-156,900$80,081,100
NE-257,290$108,186,450
NE-353,610$73,729,950
Nevada208,790$399,365,250
NV-134,340$51,625,650
NV-257,560$112,380,300
NV-374,320$184,339,500
NV-442,570$51,019,800
New Hampshire127,290$139,971,750
NH-165,780$71,906,400
NH-261,510$68,065,350
New Jersey793,540$905,707,650
NJ-146,570$43,215,300
NJ-247,580$56,804,400
NJ-360,050$67,591,050
NJ-478,500$110,476,950
NJ-583,770$123,237,900
NJ-657,460$60,900,300
NJ-799,140$134,120,250
NJ-859,310$37,177,050
NJ-960,370$60,972,600
NJ-1039,720$26,128,500
NJ-1194,370$128,312,550
NJ-1266,700$56,770,800
New Mexico116,770$116,051,250
NM-145,840$44,480,550
NM-229,210$33,143,100
NM-341,720$38,427,600
New York1,545,310$1,706,883,450
NY-168,300$94,130,850
NY-253,650$49,596,900
NY-398,130$198,630,000
NY-471,790$84,016,500
NY-534,940$16,914,750
NY-656,440$29,689,650
NY-759,160$42,111,300
NY-844,840$31,779,900
NY-953,120$43,552,050
NY-10106,780$160,279,650
NY-1156,450$66,956,250
NY-12129,490$225,918,450
NY-1339,470$17,304,150
NY-1444,120$19,480,350
NY-1523,380$5,825,100
NY-1657,920$58,740,300
NY-1778,540$99,493,050
NY-1858,890$68,468,850
NY-1953,010$51,046,350
NY-2053,300$52,617,600
NY-2137,030$35,656,800
NY-2236,920$32,136,900
NY-2339,240$31,281,750
NY-2444,230$42,504,150
NY-2553,970$46,780,200
NY-2639,580$33,973,800
NY-2752,620$67,997,850
North Carolina773,030$892,562,250
NC-130,560$38,218,650
NC-292,310$109,777,200
NC-348,660$57,042,600
NC-483,380$92,334,000
NC-542,250$42,132,600
NC-656,210$70,326,150
NC-766,540$83,238,900
NC-842,430$38,853,600
NC-967,750$91,632,750
NC-1051,960$65,467,800
NC-1170,210$69,042,450
NC-1276,150$89,297,400
NC-1344,620$45,198,150
North Dakota71,790$135,763,050
Ohio831,060$952,789,200
OH-159,710$79,402,500
OH-257,190$90,038,250
OH-343,310$35,576,100
OH-444,920$44,056,500
OH-557,110$67,767,000
OH-635,900$35,676,750
OH-752,240$59,898,750
OH-849,540$57,972,750
OH-938,370$32,659,500
OH-1046,910$41,137,650
OH-1138,430$40,146,900
OH-1275,630$92,244,150
OH-1337,510$35,957,400
OH-1470,830$99,668,100
OH-1556,640$64,461,300
OH-1666,820$76,125,600
Oklahoma229,670$287,131,950
OK-156,020$76,867,950
OK-229,950$28,597,650
OK-345,840$48,813,600
OK-442,990$47,801,700
OK-554,870$85,051,050
Oregon346,700$420,558,000
OR-176,600$88,685,550
OR-267,610$83,181,450
OR-378,530$78,694,200
OR-456,670$75,040,800
OR-567,290$94,956,000
Pennsylvania958,540$1,115,623,500
PA-176,050$108,008,550
PA-231,730$16,761,150
PA-346,040$33,968,850
PA-485,930$120,490,350
PA-559,460$69,186,000
PA-670,280$95,572,800
PA-752,920$56,705,400
PA-839,920$40,101,600
PA-942,840$50,416,650
PA-1053,070$55,281,000
PA-1164,990$97,669,650
PA-1243,210$44,756,850
PA-1342,680$51,459,450
PA-1445,950$53,825,700
PA-1538,110$37,601,550
PA-1644,850$55,839,150
PA-1768,550$83,177,550
PA-1851,960$44,801,250
Rhode Island88,330$91,083,300
RI-143,930$44,762,400
RI-244,400$46,320,900
South Carolina352,330$424,027,200
SC-185,350$125,505,000
SC-249,110$55,071,450
SC-340,090$38,112,900
SC-459,820$71,493,600
SC-543,750$47,767,950
SC-627,380$30,030,150
SC-746,830$56,046,150
South Dakota88,650$156,871,650
Tennessee476,120$624,517,200
TN-139,530$41,197,200
TN-259,850$109,779,900
TN-347,380$55,981,050
TN-453,820$55,790,700
TN-577,390$101,818,350
TN-658,080$65,717,100
TN-762,180$97,234,950
TN-850,490$73,459,650
TN-927,400$23,538,300
Texas1,981,140$2,647,459,950
TX-141,330$53,966,250
TX-269,140$88,684,350
TX-396,160$133,484,550
TX-449,160$68,837,700
TX-546,130$46,066,200
TX-656,480$59,373,750
TX-778,500$220,253,250
TX-870,820$99,391,200
TX-941,180$26,049,900
TX-1088,360$109,817,850
TX-1150,600$76,882,650
TX-1265,410$92,253,600
TX-1340,810$60,551,400
TX-1440,790$55,848,000
TX-1534,480$34,473,600
TX-1631,710$36,172,050
TX-1750,720$55,757,700
TX-1843,960$60,958,350
TX-1941,460$56,920,800
TX-2034,680$27,087,000
TX-2194,030$162,377,850
TX-2282,340$104,629,350
TX-2347,440$50,512,500
TX-2474,480$135,680,100
TX-2584,040$141,282,450
TX-2684,980$109,992,450
TX-2739,380$42,810,450
TX-2835,650$26,410,350
TX-2929,950$19,725,900
TX-3037,190$46,304,250
TX-3175,580$74,998,950
TX-3281,510$149,536,050
TX-3330,430$21,499,200
TX-3426,060$21,867,600
TX-3546,760$35,899,800
TX-3639,440$41,102,550
Utah242,810$386,955,300
UT-155,070$90,276,450
UT-259,600$90,716,850
UT-366,850$124,970,100
UT-461,290$80,991,900
Vermont63,290$66,931,500
Virginia695,180$721,409,850
VA-159,670$51,808,350
VA-254,610$68,952,300
VA-333,760$25,124,850
VA-446,170$43,145,400
VA-553,660$54,318,900
VA-651,860$47,576,400
VA-780,120$76,108,650
VA-896,850$76,728,600
VA-931,880$24,754,650
VA-10101,130$177,242,100
VA-1185,470$75,649,650
Washington668,720$815,391,600
WA-184,660$119,989,200
WA-265,520$68,757,000
WA-358,240$82,650,900
WA-438,850$56,965,050
WA-552,500$72,639,750
WA-660,250$65,594,550
WA-7113,630$118,488,600
WA-870,170$87,472,200
WA-976,240$91,299,450
WA-1048,660$51,534,900
West Virginia76,660$68,958,600
WV-128,790$25,559,850
WV-229,210$26,348,850
WV-318,660$17,049,900
Wisconsin453,250$582,897,900
WI-153,930$65,567,250
WI-275,740$92,027,700
WI-350,370$69,638,400
WI-435,960$27,356,550
WI-569,170$92,335,050
WI-655,070$77,692,350
WI-754,770$70,680,150
WI-858,240$87,600,450
Wyoming49,400$74,755,200

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