Tax Planning for Physicians in Texas (2026)
Physicians in Texas face no income tax on wages on top of the 37% federal bracket and payroll taxes. This guide summarizes the 2026 Texas rules that matter most to doctors, dentists and practice owners.
Texas income tax rates for 2026
Texas does not levy a personal income tax on wages, salaries or self-employment income.
Pass-through entity tax (SALT workaround)
Not applicable. The state does not tax wage or business income for individuals, so there is no state tax to move to the entity level.
Local income taxes
Texas physicians generally do not face a separate city or county income tax on wages.
Planning notes for Texas physicians
- Texas has no personal income tax, so federal planning carries nearly all of the opportunity for Texas physicians.
- Texas practices organized as entities may owe the Texas franchise (margin) tax once revenue passes the no-tax-due threshold, while sole proprietors and some general partnerships owned by individuals do not.
Federal strategies that apply in every state
State tax is only part of the picture. The federal rules drive most of the savings for physicians in Texas:
- W-2 physician tax strategies: maximize 401(k)/403(b), 457(b), HSA and the backdoor Roth.
- 1099 physician tax planning: solo 401(k), deductions and the S corporation decision.
- Practice owners: entity, compensation, cash balance plans and exit planning.
- Real estate and cost segregation for physicians with time to participate.
City guides for Texas physicians
Local taxes and planning notes for physicians in Houston, Dallas, San Antonio, Austin, Fort Worth. Our planning is delivered virtually, so location does not limit access.
Guides by specialty
Surgeons · Anesthesiologists · Radiologists · Orthopedic Surgeons · Cardiologists · Dentists · Dermatologists · Emergency Physicians · Gastroenterologists · Ophthalmologists · Neurosurgeons · Plastic Surgeons · Psychiatrists · Hospitalists · Pain Management Physicians
Frequently asked questions
What is the Texas state income tax rate for physicians in 2026?
Texas has no income tax on wages. Physicians there pay federal income tax and payroll taxes, and may owe tax to other states where they work.
Does Texas have a pass-through entity tax?
Not applicable. The state does not tax wage or business income for individuals, so there is no state tax to move to the entity level.
Can GenWealth 360 help physicians in Texas?
Yes. GenWealth 360 provides tax planning for physicians, dentists and practice owners in all 50 states, including Texas, through virtual meetings.
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.
Schedule a consultationBrowse the Resource CenterRelated guides
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.