Top Tax Write-Offs for Medical Practices in 2026: EHR, Devices, and Everyday Expenses

Between technology, staffing, compliance requirements, and patient care tools, the overhead piles on fast; so, it goes to show that running a medical practice in 2026 is not cheap. The good news is that many of these costs can be written off at tax time. If they meet the IRS standard of being “ordinary and necessary” for running your business, that is. 

Take a look at the practical deductions small and mid-sized practices should be paying attention to throughout the year, not just when tax season rolls around. 

EHR, Billing Software, and Practice Technology 

For most practices, your EHR and practice management system are some of your biggest ongoing expenses. Subscription fees for EHRs, billing platforms, patient engagement tools, telehealth software, and care management programs are typically considered standard business expenses and are usually deductible.  This is an often-overlooked advantage! 

If you’ve purchased hardware such as personal servers, or major hardware outright, those may qualify for depreciation or a Section 179 expense.  You may be able to deduct the full cost in the year you start using the equipment instead of spreading it out.  Tools and software that support clinical documentation, revenue cycle management, remote patient monitoring, or care coordination generally fall into the category of operational technology expenses when they’re used directly for patient care and day-to-day practice operations. 

Remote Patient Monitoring (RPM) Devices 

As RPM programs continue to grow, especially with Medicare and commercial reimbursement opportunities, practices are investing more in equipment like blood pressure cuffs, pulse oximeters, glucose monitors, and digital scales. 

If your practice purchases and deploys these devices for patient care, they’re typically treated as business equipment and may be deductible or eligible for Section 179. Beyond the tax benefit, RPM programs can also generate reimbursable revenue when done correctly. 

Staffing and Contractor Expenses 

Payroll is usually the largest expense for any medical practice, and it’s also one of the most straightforward deductions. Salaries, bonuses, benefits, and employer payroll taxes are all considered deductible business expenses. 

Payments to independent contractors, whether that’s a virtual assistant, biller, therapist, consultant, or part-time clinician, are also deductible if they’re properly documented and reported on 1099 forms. 

Office, Clinical, and Compliance Costs 

The everyday costs of running a practice add up quickly, but most of them are deductible. This includes things like: 

• Rent or lease payments 

• Utilities and internet 

• Medical and office supplies 

• Malpractice insurance 

• Licensing and credentialing fees 

• Cleaning and maintenance 

• IT support and cybersecurity 

These are the routine expenses that keep your doors open and your operations running smoothly. 

Continued Education, Training, and Conferences 

Continuing medical education, recertification, or training related to your care are generally considered deductible. If travel is primarily for professional reasons, then flights, hotels, and registration fees may also qualify. 

The Bottom Line 

If you’re investing in your practice, staff, or software that improves patient care, there’s a good chance those same investments can lower your taxable income. The key is staying organized and working with a CPA who understands healthcare.  When your systems and workflows are centralized, like with Enable Healthcare’s MDnet, it’s much easier to follow revenue-generating services and the expenses that support them. 

Disclaimer: This content is for general informational purposes only and shouldn’t be considered tax advice. Always consult with a qualified tax professional or CPA who understands healthcare practices to review your specific situation and ensure compliance with current IRS guidelines.