As a dental practice owner, staying ahead of tax law changes can help you plan smarter and keep more of your hard-earned revenue. The tax landscape for 2026 includes updates that affect small businesses, and it’s important you understand what matters most for your practice.

What’s Changing in 2026

The One Big Beautiful Bill Act (OBBBA), signed in 2025, made significant changes to federal taxes that carry into 2026. These changes affect deductions, credits, and tax planning for small businesses, including dental practices.

Inflation Adjustments and Standard Deductions

Tax brackets and the standard deduction were adjusted for inflation. That means income thresholds have shifted, and many small business owners will have slightly higher thresholds before moving into higher tax brackets.

Permanent Bonus Depreciation

One of the biggest wins for small businesses is the permanent restoration of 100% bonus depreciation. You can now deduct the full cost of qualifying business assets — like new dental equipment — in the year you place them in service. That can improve cash flow and reduce your tax bill in the year you invest.

Mileage Deduction Increase

If your practice uses vehicles for business, the standard mileage rate increased to 72.5 cents per mile for 2026. This helps offset fuel and maintenance costs when deducting business travel.

What It Means for Your Practice

Here’s how these changes may affect you:

• Lower taxable income with strategic asset purchases: Using bonus depreciation wisely may reduce your practice’s taxable income in the year you buy equipment.
• Keep more from routine business travel: The increased mileage rate helps you recover more of your actual vehicle costs.
• Breathing room from inflation updates: Adjusted brackets help keep more of your income in lower tax brackets.

Tips for Small Business Tax Planning

• Review your expense documentation and make sure it’s organized.
• Plan equipment purchases with your CPA to take full advantage of bonus depreciation.
• Update your payroll and withholding practices to reflect new tax tables and deductions.

Wrap Up

Understanding the 2026 tax laws can help you make smarter financial decisions for your dental practice. Work with your CPA to align your planning with these changes and take advantage of every opportunity to reduce your tax burden.

Call 404-495-4895 to schedule a consultation with Pro-Fi 20/20 Dental CPAs in Suwanee, GA 30024.