Tax deductions have always been a focus for those dentists keen to lower their tax bill, and in 2026, this isn’t likely to change. What has changed however, are IRS limits, enforcement priorities, and new ways to track expenses more accurately. Combine all of these, and this year becomes all about planning your taxes as a dentist, instead of scrambling for opportunities to save money at the last minute.
Here’s a short guide to tax reductions for dentists, along with how dentists can protect, plan and track them more efficiently:
Mileage
Mileage must still be related to business activities, and not commuting, logs continue to be essential, and you must still make the choice between standard mileage and actual expenses.
What’s new: applying to gas, hybrid and electric vehicles, the IRS have increased the standard business mileage rate from 70 cents last year, to 72.5 cents this year. impacting basis calculations later, the depreciation portion that’s embedded in the rate of mileage, has gone up to 35 cents per mile.
Using a mileage-tracking app is the most efficient way to stay on top of your miles as they add up.
Equipment & Technology
Eligible equipment must be in use, and not just bought, and whether equipment is for business or personal use, is still of significance.
What’s new: for qualifying assets that have been placed in service after the 19th January 2025, 100% bonus depreciation is back. There are also increases to expensing limits under Section 179.
Coordinating with a dental tax specialist before any contracts are signed, can be helpful in preventing deductions from being pushed into the wrong year.
Retirement contributions
As a way of reducing taxable income, retirement contributions continue to be effective for dentists. Still popular and flexible, are Solo and Safe Harbor 401(k)s, and for certain practice structures, SEP IRAs remain a simple choice. For those practice owners with a higher income, cash balance plans are still a strong tool.
What’s new: contribution limits have seen a slow increase, high earners aged 50 and above must make catch-up contributions as Roth contributions, and dentists need to be increasingly mindful of plan compliance and documentation, as the IRS ramp up their scrutiny of dental retirement plans.
Scheduling a consultation with a tax specialist to review your retirement plan, can help you secure bigger deductions and dodge issues with compliance at a later date.
Payroll & Owner Compensation
Payroll forms part of a legitimate tax strategy, especially for practices structured as an S-Corps, and remaining the same for dentists, is the fact that owner compensation must be deemed reasonable.
What’s new: owners underpaying themselves now face more intense scrutiny from the IRS, while for decisions surrounding compensation, more emphasis has been placed on supporting documentation.
Sitting down with a tax planner to review annual compensation can help balance out payroll taxes, and reduce the risk of audit.
Professional fees & Advisory Costs
When related to business operations, fees for accounting, consulting and legal services are still deductible, but…
What’s new: business advisory and personal services are being increasingly distinguished by the IRS, and poor categorization can jeopardize deductions.
Ensuring that all advisory expenses are properly listed in your books, is a must.
Office, facility & Operating Expenses
While there are few changes to this expenses category in 2026, and rent, supplies, utilities and maintenance etc, remain deductible, consistency and proper substantiation are increasingly expected by the IRS.
Make sure that you’re consistently categorizing expenses and reviewing them every year with the help of professional tax planning for dentists.
Digital records, timely documentation, and consistent categorization are all IRS expectations in 2026. To protect those deductions you may be eligible for as a dentist with your own practice, year-round planning – and not a last-minute scramble when the filing deadline looms – is essential. Practices that plan well, get to keep more of what they earn; it really is as simple as that!
