The ‘Big, Beautiful Bill’ Also Brings a Big Tax Hike for Dentists
Buried in a sweeping budget bill is a provision that could raise taxes on thousands of dental practice owners. By limiting critical tax deductions for pass-through entities, the measure threatens small practices, especially in rural and underserved communities.
Dentists across the country are sounding the alarm over a proposed budget reconciliation bill that includes a provision eliminating key tax deductions for pass-through entities. The change would disproportionately impact dental practices, the vast majority of which operate under pass-through structures such as partnerships or S corporations. If passed, the measure would deny these businesses the ability to deduct state and local taxes at the entity level, a tool many rely on for tax relief. This shift would result in higher taxes for practice owners, reduce parity with large corporations, and create financial strain for service-based providers already navigating rising operating costs and staffing shortages.
Approximately 90% of private dental practices operate as pass-through entities, all of whom would feel this pinch. This could lead to reduced investment in technology, staff, and patient services, particularly in areas already struggling with access to care. The dental community, led by the American Dental Association and a coalition of health organizations, is calling on Congress to restore fairness and preserve the deduction. Click here to read more.
