Tax Planning for Physicians in Buffalo, NY (2026)

Physicians in Buffalo pay federal tax at up to 37% plus New York income tax (a top rate of 10.9%), and local rules add another layer. Here is how the 2026 rules apply to doctors, dentists and practice owners in Buffalo, NY.

2026 at a glance for Buffalo, NY physicians

State tax figures apply New York's 2026 brackets to state taxable income and ignore credits, deductions and local taxes.

Local taxes in Buffalo

Buffalo does not levy a city income tax; in New York only New York City and Yonkers do. Erie County is outside the MCTMT district.

State rules that apply in Buffalo

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.

• New York's top rate is 10.9% (on income over $25 million; rates of 9.65% to 10.3% apply above about $1.08 million), and New York City residents add up to 3.876%, so the combined top state and city rate for NYC residents is about 14.8%.
• New York has both a state pass-through entity tax and a separate New York City pass-through entity tax that partnerships and S corporations can elect.
• New York taxes nonresidents on income from work performed in the state, so commuting physicians from New Jersey or Connecticut still file New York returns.

Where the savings usually come from

For most Buffalo 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 New York cities: New York City, Yonkers, Rochester, Albany, Long Island.
• State rules: New York physician tax guide and all 50 state guides.
• By specialty: Orthopedic Surgeons, Emergency Physicians, Plastic Surgeons, Surgeons 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.

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.