Tax Brackets Guide for 2026: What Physicians Need to Know
As a high-earning physician, understanding how tax brackets evolve year over year is critical to optimizing your tax strategy. With 2026 marking the sunset of many provisions from the 2017 Tax Cuts and Jobs Act (TCJA), it’s time to sharpen your physician tax planning and take proactive steps before the changes kick in.
Whether you’re pursuing aggressive physician tax savings, contributing to a backdoor Roth IRA for doctors, or fine-tuning an S-corp strategy for your practice, this guide helps you stay ahead of IRS changes.
Overview of 2025 Tax Brackets (Baseline)
The 2025 tax brackets are the last full year under TCJA’s favorable rate structure. These current brackets include:
| Filing Status | 10% | 12% | 22% | 24% | 32% | 35% | 37% |
|---|---|---|---|---|---|---|---|
| Single | up to $11,600 | $11,601–$47,150 | $47,151–$100,525 | $100,526–$191,950 | $191,951–$243,725 | $243,726–$609,350 | $609,351+ |
| Married Filing Jointly | up to $23,200 | $23,201–$94,300 | $94,301–$201,050 | $201,051–$383,900 | $383,901–$487,450 | $487,451–$731,200 | $731,201+ |
These brackets reflect inflation-adjusted thresholds and are still relatively favorable for high earners. For many doctors, 2025 offers the last chance to fully leverage lower tax rates, making this a vital year for physician tax planning.
New Thresholds and Changes in 2026 Brackets
Unless Congress acts, 2026 will see the return of pre-TCJA brackets, which are:
-
Less favorable for high earners
-
Include narrower income ranges per bracket
-
Reinstate personal exemptions
-
Lower the standard deduction
Projected 2026 brackets (not yet final) may look like this for single filers:
| Rate | Income Range (Single) |
|---|---|
| 10% | up to $9,525 |
| 15% | $9,526–$38,700 |
| 25% | $38,701–$93,700 |
| 28% | $93,701–$195,450 |
| 33% | $195,451–$424,950 |
| 35% | $424,951–$426,700 |
| 39.6% | $426,701+ |
Higher rates and narrower brackets mean increased tax exposure for physicians, especially those earning over $400,000. This makes it crucial to revisit your income structure and implement defensive strategies such as cash balance plans for physicians or tax-efficient investments.
2025 vs 2026 Tax Brackets: Side-by-Side Comparison
Here’s a visual comparison to better understand the impact on your bottom line:
| Year | Top Marginal Rate | Single Filer Threshold for Top Rate | Married Filing Jointly Threshold |
|---|---|---|---|
| 2025 | 37% | $609,351+ | $731,201+ |
| 2026 | 39.6% | $426,701+ | $480,051+ |
For high-earning physicians, this increase could mean tens of thousands of dollars in additional federal income taxes annually.
Tax Planning Strategies for Physicians in 2026
1. Prepay Income into 2025
If possible, shift income such as bonuses or business distributions into 2025 to take advantage of lower tax brackets.
2. Backdoor Roth IRA for Doctors
Consider converting traditional IRAs to Roth IRAs while marginal rates are lower. This shields future growth from taxation.
3. Maximize Retirement Contributions
Fully fund 401(k)s, HSAs for doctors with family coverage, and cash balance plans before year-end to reduce adjusted gross income.
4. S-Corp Optimization
Ensure your reasonable compensation is set correctly to reduce payroll taxes and qualify for S-corp pass-through savings. Learn more about how to pay yourself from your business.
5. Deduct CME & Business Travel
Maximize CME tax deductions and other business-related expenses like conferences, travel, or office upgrades.
6. Avoid Underpayment Penalties
Use the safe harbor rule for doctors to make timely estimated tax payments and avoid penalties.
FAQ
Will my tax bill go up in 2026?
Most likely, yes—especially if you’re in the top two brackets. Income thresholds shrink, and marginal rates increase.
What can I do before 2026?
Max out tax-advantaged contributions, explore entity structuring (like an S-corp), and work with a physician CPA to defer income into qualified investments.
Should I switch to a different entity?
Maybe. A real estate professional status or switching from sole proprietor to S-corp could provide meaningful tax savings.
Can I still use a backdoor Roth IRA in 2026?
Yes, but depending on legislative changes, income thresholds and pro-rata rules may evolve. It’s smart to act early.
Ready to talk strategy? Start here.
Visit contact physiciantaxsolutions.com to schedule a consultation and learn how we can help you take control of your tax strategy today.
This post serves solely for informational purposes and should not be construed as legal, business, or tax advice. Individuals should seek guidance from their attorney, business advisor, or tax advisor regarding the matters discussed herein. physiciantaxsolutions.com assumes no responsibility for actions taken based on the information provided in this post.