Medical Practice Tax Planning: A Doctor's Guide

High Income, High Taxes

Medical practices average $1.2M in revenue with 20% profit margins. At this income level, federal taxes alone can reach 32-37% bracket. Strategic planning becomes essential.

Retirement Maximization

A defined benefit pension plan can allow physician-owners to defer $100K-$250K annually — far more than a 401(k). This is one of the most powerful tax reduction tools available.

State Tax Impact

A physician in California pays up to 13.3% state income tax, while the same doctor in Florida pays 0%. On $240K net profit, that is a $31,920 annual difference. See medical practice taxes by state.