Big Tax Changes Are Coming: Here’s What Dentists Need to Know (And Do) Before 2026
By Maritza Duran | Startup Consultant & Research-Driven Advocate for Dentists
As someone who loves doing research to better prepare myself and the clients I serve, I recently came across an important tax update shared by my trusted CPA colleague, Kelly Ann Rorhs. While I’m not a tax professional, what I read made me pause.
There are major changes coming to the tax code in 2026—and they will affect dentists, especially practice owners and associates thinking about ownership. My goal with this article isn’t to explain the law in technical terms, but to break it down into simple, real-life examples so you can prepare. I’ll also share some practical tools and questions to bring to your CPA or financial advisor.
💡 What’s Changing? A Quick Overview
On July 4, 2025, a new law made many temporary tax provisions from the 2017 Tax Cuts and Jobs Act permanent—but also introduced new rules. These changes affect:
- Your personal taxes (brackets, deductions, credits)
- Your business structure and write-offs
- Your planning timeline for things like equipment purchases or expansions
Whether you’re a brand-new associate with student debt or an experienced owner thinking about your next investment, this new law impacts how you earn, spend, and save money.
📌 1. Tax Brackets Stay Lower — But Plan Ahead
✅ What’s Staying: The seven tax brackets (10% to 37%) are now permanent, with annual inflation adjustments.
📍 What This Means for You: If you’re earning $150K as an associate or $300K+ as an owner, your effective tax rate will stay stable—but if your income jumps into the top bracket, you’ll feel the pressure. Plan ahead with your CPA to avoid tax season surprises.
Example:
If you’re expecting to have your best year yet in 2026, consider deferring bonuses or accelerating deductions before year-end 2025.
📌 2. Standard Deduction Goes Up — But Itemized Deductions Shrink
✅ Standard deduction increases slightly (Married: $31,500).
❌ Miscellaneous deductions are gone for good. That includes unreimbursed CE, licensing, and uniforms if you’re a W2 associate.
Example:
If you’re an associate and paid for a $1,200 CE course out of pocket, you can’t write it off anymore—unless you have a side business (like a speaking or consulting gig) structured properly.
✅ Tool: Ask your CPA if creating a small side LLC for any additional work could unlock deductions.
📌 3. Section 199A Deduction for Owners: Still Here and Expanded
✅ If you’re an S-Corp owner or in a pass-through entity, the 20% QBI (Qualified Business Income) deduction remains and is now easier to qualify for.
Example:
If your dental practice generated $220K in net income in 2026, you may qualify to deduct $44K under QBI — reducing your taxable income significantly. But the rules vary, so check with your tax pro to stay eligible.
📌 4. Time Equipment & Buildout Investments Strategically
💥 Bonus depreciation is back at 100% for equipment placed in service after Jan 19, 2025.
Example:
Planning to buy a CBCT or expand to a third op? Making that purchase in early 2026 could allow you to write off the full value right away—saving thousands in taxes.
✅ Tool: Use an equipment quote spreadsheet to compare vendors and timing of delivery to align with your tax strategy.
📌 5. More Generous Childcare & Education-Related Credits
👩👧 If you’re a working parent, there are larger child tax credits and improved employer-sponsored student loan repayment benefits.
Example:
You could now get up to $2,200 per child with partial refunds, and if your employer (or your own practice) helps pay off student loans, those amounts may be excluded from taxable income.
📌 6. 1099 Reporting Threshold Increases
✅ Good news for small practices: You won’t have to file 1099s for every $600 vendor payment. The new threshold is $2,000.
Example:
If you pay your part-time IT tech $1,800 in 2026, you no longer need to send a 1099 (still best to track payments, though!).
👩⚕️ What Should You Do Next?
Here are 4 simple actions you can take now:
- Schedule a Q4 Planning Session
Meet with your CPA or bookkeeper to model different income and expense scenarios for 2026. - Update Your Expense Strategy
Move out-of-pocket costs to the business where possible — think uniforms, CE, and travel. - Optimize Your Entity Structure
If you’re a sole proprietor or LLC, it may be time to explore S-Corp benefits for 2026. - Use Tools Like Budget Templates
If you’re in startup mode, download our free budget planning tool Dental Startup Toolkit to track capital expenses and operating cash flow.
🧠 Final Thoughts: Preparation Beats Panic
You don’t need to become a tax expert — but you do need to know the right questions to ask. I’m committed to doing the research, translating complex updates into plain language, and giving you tools to make smart, confident decisions for your practice and your future.
🧩 Next Up in the Series…
In my next article, I’ll explore how upcoming changes to Medicaid and Medicare reimbursements may affect your patient base — especially in underserved communities — and why this matters for young dentists with student loan debt and startup dreams.
Let me know if you’d like that sent directly to your inbox. And as always, share this with a dental friend who needs to know what’s coming.
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