Dental Practice Tax Strategies: Optimize Your Tax Position
2026-03-14 · 6 min read · Industry Guide
Dental Practice Tax Overview
Dental practices average a 25% profit margin, making them one of the more profitable small business types. However, high income means higher tax brackets. Strategic planning is essential.
Entity Structure Matters
Most dental practices benefit from S-Corp election once revenue exceeds $200K. By paying yourself a reasonable salary and taking the rest as distributions, you can save $10K-$30K annually in self-employment tax.
Equipment Depreciation
Dental equipment qualifies for Section 179 depreciation, allowing you to deduct the full cost in the year of purchase rather than depreciating over time. This can create significant tax savings in growth years.
Compare dental practice taxes by state: view all states.
Our team analyzes data from IRS & Tax Foundation to deliver accurate, up-to-date information. All data is verified and cross-referenced with official sources.