Tax Planning for Dermatologists (2026)
Dermatology combines insurance-based medical work with cash-pay cosmetic services and has seen heavy private equity consolidation. Practice owners face both business and sale planning questions.
Tax planning priorities for dermatologists
Cosmetic revenue
Cash-pay services increase practice margins, which raises the value of the PTET election and retirement plan design.
Product sales
Practices that sell skincare products may need to collect sales tax and track inventory.
Private equity
Plan allocation, rollover equity and post-sale compensation early.
Real estate
Owning your clinic space through a separate entity can create a second asset that survives a practice sale.
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.
Frequently asked questions
Do dermatology practices charge sales tax?
Many states tax retail product sales, and some tax certain cosmetic services. The rules vary by state.
Get a tax plan built for your situation
GenWealth 360 builds proactive, tax-first plans for physicians, dentists and medical practice owners in all 50 states. Start with a conversation about your income, entity and goals.
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Sources
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.