Tax Planning for Dentists (2026)

Most dentists own their practices or will, which makes dental tax planning closer to small-business planning than to employed-physician planning. Equipment, real estate, staff retirement plans and an eventual sale to a DSO or associate dominate the strategy.

Tax planning priorities for dentists

Entity and compensation

Dental practices are often professional corporations or PLLCs taxed as S corporations. Reasonable salary, distributions and the state PTET are the core annual decisions.

Equipment

Chairs, imaging, CAD/CAM and lasers are often deductible in the year purchased through Section 179 or bonus depreciation.

Retirement plans

Dentists with stable profits often combine a 401(k) with profit sharing and a cash balance plan, subject to staff testing.

DSO sales

Sales to dental service organizations involve the same allocation, rollover equity and earnout questions as physician private equity deals.

Associates and buy-ins

Structuring an associate buy-in determines who deducts what and when.

Strategies that apply to every specialty

• Know your marginal rate. In 2026 the 37% federal bracket starts at $640,600 (single) and $768,700 (joint); see how much tax doctors pay.
• Fill every tax-advantaged account: 401(k)/403(b) ($24,500 in 2026), 457(b), HSA and a backdoor Roth.
• Match the plan to how you are paid: W-2, 1099 or practice owner.
• Use your state's rules; see our 50-state guides.

This article is for general educational purposes and is not tax, legal or investment advice. Tax law changes often and its application depends on your facts. Figures reflect 2026 rules as published by the sources listed above. Consult a qualified professional before acting. See our editorial policy.