Dentist Tax Calculator 2026 β Solo Practice, S-Corp & Section 179
Calculate tax for dental practices. Covers sole proprietor vs. S-Corp comparison, Section 179 deductions for dental equipment, SE tax, and entity comparison at your revenue level.
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Expenses
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Chairs, CBCT, X-ray, CAD/CAM β Section 179 eligible $
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Typical: 40β50% of net profit or $160Kβ$200K for dentists %
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Total Tax (Federal + SE/FICA)
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Net Practice Income
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Section 179 Deduction
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Effective Tax Rate
Dental Practice Tax Breakdown
How Dental Practice Taxes Work
The choice of entity type significantly impacts a dentist's tax liability. Section 179 deductions for dental equipment can dramatically reduce taxable income in capital-intensive years.
Key Tax Formulas
Net Profit = Revenue β All Operating Expenses β Section 179
Sole Prop: SE Tax = Net Profit Γ 92.35% Γ 15.3%
SE Deduction = SE Tax Γ· 2
S-Corp: FICA on Salary only; distributions have no FICA
Section 179 Limit: $1,220,000 for 2026
Bonus Depreciation: 60% on qualifying equipment in 2026
Sole Prop: SE Tax = Net Profit Γ 92.35% Γ 15.3%
SE Deduction = SE Tax Γ· 2
S-Corp: FICA on Salary only; distributions have no FICA
Section 179 Limit: $1,220,000 for 2026
Bonus Depreciation: 60% on qualifying equipment in 2026
Example
$800K revenue, $150K equipment, $80K lab fees, $200K staff wages, $60K rent:
Total expenses: $538K | Net before Section 179: $262K
Section 179 on equipment: $150,000
Net taxable income: $112,000
Sole prop SE tax: ~$15,000 | Federal income tax: ~$18,000
S-Corp (salary $100K): FICA $15,300, income tax ~$12,000, distribution $12K no FICA
S-Corp saves ~$3,000+ vs. sole prop at this net income
Total expenses: $538K | Net before Section 179: $262K
Section 179 on equipment: $150,000
Net taxable income: $112,000
Sole prop SE tax: ~$15,000 | Federal income tax: ~$18,000
S-Corp (salary $100K): FICA $15,300, income tax ~$12,000, distribution $12K no FICA
S-Corp saves ~$3,000+ vs. sole prop at this net income
Extended
Sole Prop vs. LLC vs. S-Corp Entity Comparison
Full side-by-side tax comparison of all three entity types at your dental practice revenue level
Side-by-side tax comparison across all three entity structures at your current practice revenue and expense levels.
| Entity Type | Net Profit | SE / FICA Tax | Federal Income Tax | State Tax | Total Tax | After-Tax Income |
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Frequently Asked Questions
Should a dentist operate as a sole proprietor, LLC, or S-Corp?
Most dentists benefit from S-Corp election once practice revenue exceeds approximately $80,000β$100,000 in net profit. As a sole proprietor or single-member LLC, you pay 15.3% SE tax on all net income. With S-Corp, you pay yourself a reasonable salary (subject to FICA) and take additional profit as distributions (no FICA). For a dentist with $300,000 net profit taking $150,000 salary, S-Corp saves roughly $23,000 in FICA annually. The S-Corp compliance costs ($3,000β$6,000/year) are usually far exceeded by tax savings at typical dental incomes.
How does Section 179 work for dental equipment?
Section 179 allows you to deduct the full cost of qualifying dental equipment in the year of purchase rather than depreciating it over several years. Common dental equipment qualifying for Section 179 includes dental chairs, CBCT/cone beam scanners ($100,000β$300,000), digital X-ray systems, CAD/CAM systems, autoclaves, compressors, and dental lasers. The 2026 Section 179 limit is $1,220,000 per year. Bonus depreciation (60% in 2026) applies to any remaining amounts. These deductions can dramatically reduce taxable income in equipment-heavy years.
What retirement accounts are available to dentists?
Dentists have excellent retirement savings options: (1) Solo 401(k) or SEP-IRA for self-employed income β up to $70,000 in 2026; (2) Defined Benefit/Cash Balance Plan β can contribute $150,000+ per year if older, providing massive deductions for high-income dentists; (3) If employed by a group practice, participate in the employer 401(k) β $24,500 employee deferral plus $31,500 profit sharing potential; (4) 529 plans funded from after-tax income. A dental associate with $200K income can often shelter $50,000β$80,000 through these accounts.
Are dental lab fees deductible?
Yes. Dental lab fees paid to outside labs for crowns, bridges, dentures, and other restorations are fully deductible as ordinary business expenses on Schedule C or the corporate return. They are a direct cost of providing dental services. For most general dentists, lab fees represent 8β12% of collections. For prosthodontists and cosmetic dentists with heavy crown and bridge work, the percentage can be significantly higher. Always obtain receipts and document these expenses carefully.
How is dental practice goodwill treated when selling?
Dental practice goodwill is classified as either personal goodwill (the dentist's personal relationships and reputation) or enterprise goodwill (the practice's systems, location, and transferable patient base). Personal goodwill is taxed at long-term capital gains rates (0%β20%). Enterprise goodwill sold as part of an asset sale in a C-Corp is taxed at ordinary income rates to the corporation. Structuring the sale to maximize personal goodwill allocation can significantly reduce total tax on a dental practice sale β this requires careful documentation and valuation of the dentist's personal contribution to the practice value.