Tax Planning for Physicians in Davenport, IA (2026)
Physicians in Davenport pay federal tax at up to 37% plus Iowa income tax (a top rate of 3.8%), and local rules add another layer. Here is how the 2026 rules apply to doctors, dentists and practice owners in Davenport, IA.
2026 at a glance for Davenport, IA physicians
| Iowa income tax | Top rate of 3.8% (2026) |
|---|---|
| State tax on $400,000 of state taxable income | $15,200 single / $15,200 married filing jointly |
| State tax on $1,000,000 (married filing jointly) | $38,000 |
| School district surtax | Set by school district, up to 20% of state tax |
| Pass-through entity tax | Available (elective) |
| Top federal rate | 37% (from $640,600 single / $768,700 joint) |
State tax figures apply Iowa's 2026 brackets to state taxable income and ignore credits, deductions and local taxes.
Local taxes in Davenport
Iowa has no city income tax, but many school districts, including districts serving Davenport, may impose an income surtax of up to 20% of your Iowa income tax. The rate depends on the school district you live in and is collected on your Iowa return.
State rules that apply in Davenport
Yes. The state has an elective pass-through entity tax (PTET) that partnerships and S corporations can use to deduct state income tax at the entity level.
- Iowa moved to a flat 3.8% income tax and exempts retirement income, a meaningful change for physicians nearing retirement.
- Iowa practice owners can elect the state pass-through entity tax.
Where the savings usually come from
For most Davenport physicians, federal planning drives the largest results: W-2 strategies such as 401(k)/403(b), 457(b) and the backdoor Roth; 1099 and locum planning; entity and cash balance plan design for practice owners; and real estate strategies for physicians with time to participate.
More physician tax guides
- Other Iowa cities: Des Moines, Iowa City, Cedar Rapids.
- State rules: Iowa physician tax guide and all 50 state guides.
- By specialty: Anesthesiologists, Dentists, Ophthalmologists, Hospitalists and every specialty.
- Core strategy: tax planning for physicians, tax planning for medical practice owners, advanced strategies for high-income physicians and S corporation tax planning for physicians, plus the physician tax glossary.
Frequently asked questions
Does Davenport have a city income tax?
Iowa has no city income tax, but many school districts, including districts serving Davenport, may impose an income surtax of up to 20% of your Iowa income tax. The rate depends on the school district you live in and is collected on your Iowa return.
What state income tax do physicians in Davenport pay?
Iowa has a top rate of 3.8% for 2026. On $400,000 of state taxable income, the 2026 brackets produce about $15,200 for a married couple filing jointly, before credits.
Can GenWealth 360 work with physicians in Davenport?
Yes. GenWealth 360 works with physicians, dentists and practice owners nationwide, including Davenport, through virtual meetings. Our office is in Long Beach, California.
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.