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How Much Do Doctors Make After Taxes & Insurance?

How Much Do Doctors Make After Taxes & Insurance

Money is one of the most overwhelmingly common pros of moving to the US, and people often cite it. We’re supposed to do this only to help other people and for the love of the profession. However, everyone wants to know how much doctors make? The idea is that being a doctor in America means earning more money. But is that true? Yes, it is. But how? SG INC CPA will excavate some fact-finding clues to know the integrity.

Taxes on Doctors

  • Federal Income Tax is Up to 37% for high-earners
  • State Income Tax goes from 0% to around 13%
  • Medicare: 2.9% total (split between employer and employee) plus an additional 0.9% for high earners
  • Social Security: 12.4% (split between employer and employee) on income up to $160,200

Insurance Liabilities on Doctors

  • Malpractice Insurance can be $10,000 to $50,000 per year.
  • Health Insurance may be around $20,000 per year for a family plan (with employer contributions often covering a significant portion)

Net Income Calculation (Example for a Specialist Earning $350,000)

  • Gross Income is of $350,000.
  • Total Deductions can be up to $141,007.40.
  • The Federal Tax on income is $80,000
  • State Income Tax is $20,000
  • Medicare Tax is $5,075
  • Social Security Tax is $9,932.40
  • Malpractice Insurance is $20,000
  • Health Insurance is $6,000
  • Net Income is $208,992.60

Comparing Physician Salaries: US vs. UK

It would help if you determined how much doctors make after taxes, and insurance covers several factors of their location, specialty, and circumstances. These factors provide more detail, and we can look at specific figures. 

According to Medscape’s annual Physician Compensation Report, the average salary for a physician (equivalent to a consultant in the UK) in the US was $319,000 per year as of 2024. Regional and specialty differences exist, with primary care doctors earning slightly less. So how much do medical doctors earn in rural areas, sometimes double the average salary of their urban counterparts?

High-Earning Specialties

The highest-paying specialties of orthopedic surgery and plastic surgery earn an average of close to $500,000 per year. It is great to go with someone earning well over a million dollars. About 50% of surgeons feel they are fairly compensated after doctor tax despite these high salaries’ perception of undervaluation.

Satisfaction among US Physicians

Medscape’s survey also revealed that a pivotal percentage of US physicians would choose to enter medicine again. The figures range from 65% to over 90%, depending on the specialty. This contrasts with the UK, where many consultants express dissatisfaction with their career choice.

UK Consultant Salaries

In the UK, NHS consultants earn between £76,000 and £105,000 per year, with some additional earnings possible through Clinical Excellence Awards or private practice. However, these awards are not the norm, and private practice income varies after Federal Tax. Thus, the average expected salary for a consultant in the UK is around £92,000, or $122,000 per year.

Earnings Disparity

Comparing the two countries, the average consultant salary in the UK is about $122,000, while in the US, its $313,000. This nearly threefold difference significantly impacts career choices. Financial planning for physicians is especially important as it is the earlier start to earning higher salaries in the US.

Training Duration and Opportunity Costs

Training duration also affects earnings. In the UK, it can take 5 to 14 years post-graduation to become a consultant, whereas in the UK, It takes about four years of residency training. The opportunity cost of delayed earnings in the UK can amount to about a million dollars over nine years, assuming earlier high earnings in the US.

Job Opportunities and Market Dynamics

In the US, the job market for physicians is diverse and expansive. Unlike the UK, where consultants often wait for existing positions to open, US physicians have numerous employment options, including private practice, multi-specialty groups, and more. 

This abundance of opportunities ensures that newly board-certified doctors are satisfied with job shortages, with many receiving 100 to 150 job offers during their income after taxes year of residency.

Public vs. Private Spending

Here’s what’s amazing: America’s government spending on health care, programs like Medicaid and Medicare, and the VA – our versions of socialized medicine – is about the same size as these other countries. These countries are where the government runs the whole healthcare system! And then there’s our private spending. The private insurance system makes health care in America so expensive.

Health Care Consumption vs. Cost

If you look at the data on physician visits and hospital discharges, you can eliminate one theory: Americans don’t consume more health care than people in these other countries. We don’t go to the doctor more than the Germans or the Japanese. We go to the doctor less. 

The difference between us and them is that we pay more. Every time we go to the doctor for everything from an angioplasty to a hip replacement, from a C-section to a pain reliever, in America, the price for the same procedure at the same hospital varies enormously depending on who is footing the bill.

What Effects Doctors Earning?

What Effects Doctors Earning

You should consider incorporating your medical practice rather than running it as a sole proprietor. Incorporation offers several advantages, such as the opportunity to defer taxes, lower your doctor’s tax bill by splitting income with your spouse, and benefit from lower corporate federal tax rates compared to personal tax rates.


Doctors in the United States l earn substantial gross incomes. The tax and insurance factors explain how much doctors make. The answer lies within primary care physicians making between $200,000 and $250,000 annually. However, the specialist’s earnings go up to $300,000 to $400,000 or more annually. 

Nevertheless, you will have to pay federal Tax, income tax against Medicare, and Social Security taxes, as well as essential to earn gross yield. It would help if you considered expenses like malpractice and health insurance, and the net income should be reduced considerably.

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