Most dentists do not think about tax deductions in isolation. They think about them in the context of everything else happening in the practice at the same time. A new associate joins. An aging piece of equipment finally needs to be replaced. A second location starts to feel realistic rather than theoretical. Taxes tend to sit in the background until a decision forces them into focus.
The rules for 2026 tax deductions for dentists have not shifted dramatically, but they have settled. Several provisions that were once temporary are now permanent or extended, and the IRS has made its expectations around documentation clearer. For dentists, that combination matters. It means there is more certainty in planning, but less tolerance for shortcuts.
Why Tax Deductions In 2026 Feel More Defined
In prior years, many dentists felt hesitant to plan too far ahead because key provisions were always on the verge of expiring or changing. That uncertainty made it harder to commit to large purchases or long term strategies.
With recent legislation, several of those moving pieces have stabilized. Deductions tied to equipment, depreciation, and business investment are now more predictable. At the same time, the IRS has continued to narrow its focus toward consistency and documentation. In practice, this means fewer surprises in the rules themselves and more scrutiny around how those rules are applied.
For most dental practices, that is a welcome tradeoff.
Equipment and Technology Deductions in 2026
Equipment remains one of the most significant deductions for dental practices, and it is also one of the easiest areas to mismanage without realizing it.
In 2026, Section 179 allows qualifying businesses to expense up to $2.5 million in eligible equipment, with a phase-out once total purchases exceed $4 million. Bonus depreciation has returned to 100% for assets placed in service during the year. Together, these rules allow many practices to deduct the full cost of new chairs, imaging systems, or scanners in the year they are installed and used.
Where planning becomes important is timing. We regularly see practices assume that ordering equipment before year-end guarantees a deduction. It does not. The equipment must be placed in service, meaning it is installed, operational, and ready for use. If a CBCT scanner arrives in December but calibration and training push actual use into January, the deduction generally moves with it.
For growing practices, especially those upgrading multiple operatories at once, these timing details can materially affect taxable income.
Mileage and Vehicle Deductions
Mileage deductions rarely feel significant on a single-trip basis, which is why they are often overlooked. Over the course of a year, they tell a different story.
In 2026, the IRS business mileage rate increased modestly. The bigger issue is not the rate, but the expectation of contemporaneous records. Dentists who travel between locations, attend study clubs, or visit suppliers often assume that rough estimates are sufficient. They are not.
The rule remains simple. To claim the deduction, you need a log that shows when you traveled, where you went, and why it was business-related. Reconstructing this information months later is one of the most common reasons valid deductions are disallowed.
Retirement Contributions as a Planning Tool
Retirement plans are often discussed late in the year, usually after income is already known.
In 2026, contribution limits for 401(k) plans, profit-sharing plans, and SEP IRAs remain generous. For many practice owners, these plans represent one of the few ways to reduce taxable income without increasing operational complexity.
The planning challenge is that some decisions must be made before year end, even if the funding occurs later. This is particularly relevant for dentists with S corporations or those transitioning into ownership. A plan that is implemented early gives you more flexibility and fewer rushed decisions.
Meal And Entertainment Deductions
Meals and entertainment continue to cause confusion because the rules changed again for 2026.
Entertainment expenses are still generally not deductible. If you are paying for tickets to a sporting event, a show, or a golf outing where business is discussed, the cost of the entertainment itself remains nondeductible and must be separately stated if any food or drink is involved.
Business meals with clients and prospects remain 50% deductible as long as they meet the usual IRS requirements. To qualify, you or an employee must be present, the meal must be directly related to the active conduct of business, and the cost must be reasonable. Meals while traveling overnight for business also continue to be 50% deductible with proper documentation.
What has changed for 2026 is meals provided to employees at or around the workplace. Under the updated rules, meals and snacks that were once deductible, such as break room snacks, coffee, catered lunches for staff meetings, and meals during training, are generally no longer deductible at all unless they are treated as taxable compensation to the employee.
There are still a few narrow exceptions where meals might be fully deductible, but they tend to fall outside ordinary practice operations. For example, meals provided at company-wide social events such as holiday parties or summer picnics that are open to all employees may still qualify for a full deduction.
Standard Deduction and Itemized Considerations
At the individual level, the standard deduction increased again for 2026. For associates and early career dentists, the standard deduction may now exceed itemized deductions entirely.
For higher-earning practice owners, especially those in high-tax states, the SALT deduction cap continues to limit the benefit of itemizing. While this rule is not new, it continues to influence entity structure, compensation planning, and long-term tax strategy.
Documentation Matters More Than Ever
Most dentists are surprised to learn that disallowed deductions are rarely about eligibility. They are about proof.
In 2026, the IRS continues to focus on reasonable compensation, depreciation schedules, and the separation of business and personal expenses. Vehicle use, home office claims, and large equipment purchases receive particular attention.
Good bookkeeping systems help, but they do not replace clear records and consistent explanations. A receipt without context is often not enough.
Work With A Dental CPA To Maximize Tax Deductions
Equipment purchases, retirement contributions, and benefit decisions still offer meaningful tax leverage, but they work best when they are coordinated with the broader financial picture of the practice. When those decisions are made in isolation or rushed at the end of the year, opportunities are often missed, and frustration tends to follow.
At Virjee Consulting, we work with dentists to connect tax planning with real practice decisions, whether that involves upgrading equipment, evaluating compensation, or preparing for a transition in ownership.
If you would like to review how the 2026 changes apply to your specific situation, schedule a conversation with us.
Starting earlier rather than later usually makes the planning process far more effective and far less stressful.
