Tax Write-Offs for New Optometry Practices: The Complete List

2026-08-21

Discover the essential tax deductions for new optometry practices, from equipment to marketing, with realistic 2026 figures and practical steps.

Starting an optometry practice means managing costs, and tax write-offs can significantly reduce your taxable income. This guide lists the deductions available to new optometry practices, with realistic ranges and actionable advice. You can claim these if you track expenses properly and keep receipts. Here is the complete list, organized by category.

1. Equipment and Technology

Optometry practices rely on specialized equipment, which is a major deductible expense. You can deduct the full cost of equipment in the year you place it in service using Section 179, up to certain limits. For 2026, the Section 179 limit is $1,220,000, but your deduction cannot exceed your taxable income. Alternatively, you can use bonus depreciation, which allows 100% expensing for new equipment. Examples include:

Slit lamps: $8,000-$15,000
Phoropters: $10,000-$20,000
Retinal cameras: $15,000-$30,000
OCT machines: $30,000-$60,000
Autorefractors: $10,000-$25,000

If you lease equipment, the lease payments are fully deductible as an operating expense. For software, such as practice management or EHR systems, costs are deductible as business expenses. For example, EHR software may cost $200-$500 per month, and you can deduct that monthly fee.

2. Office Space and Utilities

Your office rent is a deductible business expense. If you work from home initially, you may qualify for the home office deduction, but only if you use a space exclusively and regularly for business. The simplified method allows $5 per square foot, up to 300 square feet, for a maximum of $1,500. However, most new practices rent a commercial space, and the rent is fully deductible.

Utilities, including electricity, water, internet, and phone, are deductible. If you use your personal phone for business, deduct a percentage based on business use. For example, if 50% of your calls are business, deduct 50% of the phone bill. Internet costs are fully deductible if used for business.

3. Inventory and Supplies

Contact lenses, eyeglass frames, lenses, and other optical supplies are inventory, and you can deduct the cost of goods sold (COGS) when you sell them. For a new practice, initial inventory purchases can be substantial. For example, a starter inventory of frames and lenses might cost $20,000-$50,000. You can deduct the cost of supplies that are not inventory, such as cleaning solutions, trial lenses, and office supplies, as they are used.

4. Staff Salaries and Benefits

Salaries, wages, and bonuses for employees are deductible. This includes opticians, technicians, and administrative staff. For example, an optician’s salary might be $40,000-$60,000 per year, and that is fully deductible. You also deduct employer-paid portions of payroll taxes, workers’ compensation insurance, and health insurance premiums. Retirement plan contributions, such as a 401(k) match, are deductible as well.

5. Professional Services and Licenses

Fees for legal, accounting, and consulting services are deductible. For example, an accountant might charge $1,500-$5,000 for tax preparation and ongoing advice. Also deductible are professional licenses and permits, such as your state optometry license, which might cost $200-$500 annually. Continuing education courses and conferences are deductible, including travel and lodging, as long as they maintain or improve your skills.

6. Marketing and Advertising

Marketing expenses are fully deductible. This includes website design and hosting, which might cost $2,000-$5,000 initially and $50-$100 per month for hosting. Online ads, such as Google Ads or social media ads, are deductible. For example, a monthly ad spend of $500-$2,000 is common. Print materials, such as brochures and business cards, are deductible. Also, promotional items like branded pens or stress balls are deductible, but note that items of nominal value (under $25) are fully deductible, while others may need to be capitalized.

7. Insurance

Premiums for business insurance are deductible. This includes professional liability (malpractice) insurance, which might cost $3,000-$8,000 per year for optometrists. General liability insurance is also deductible, typically $500-$2,000 per year. Property insurance for your office and equipment is deductible, as is business interruption insurance.

8. Vehicle and Travel Expenses

If you use your car for business, you can deduct actual expenses or use the standard mileage rate. For 2026, the standard mileage rate is expected to be around $0.67 per mile (check IRS guidance). For example, if you drive 5,000 miles for business, you can deduct $3,350. Travel for conferences or to visit other practices is deductible, including airfare, hotels, and meals (50% deductible). Keep a mileage log and receipts.

9. Miscellaneous Expenses

Other deductible expenses include:

Bank fees and credit card processing fees
Postage and shipping
Office furniture and fixtures (deductible via Section 179)
Repairs and maintenance (e.g., $500 for a broken chair)
Dues to professional associations (e.g., American Optometric Association, $500-$1,000 per year)
Subscriptions to trade journals

FAQ

Can I deduct the cost of starting my practice before it opens?

Yes, certain startup costs are deductible up to $5,000 in the first year, but the deduction is reduced if your startup costs exceed $50,000. Costs like market research, training, and legal fees qualify. Any remaining costs are amortized over 180 months.

What is the best way to track expenses for tax deductions?

Use accounting software like QuickBooks or Xero to track expenses in real time. Open a separate business bank account and credit card, and pay all business expenses from them. Keep receipts digitally using apps like Expensify or Shoeboxed. This makes tax time easier and ensures you don’t miss deductions.

Are there any tax credits for hiring staff?

Yes, the Work Opportunity Tax Credit (WOTC) is available for hiring employees from certain target groups, such as veterans or long-term unemployed. The credit can be up to $9,600 per employee, depending on the group and hours worked. Check with your accountant to see if you qualify.

How long do I need to keep tax records?

Keep records for at least three years from the date you file your return, but for assets like equipment, keep records until the depreciation period ends. For example, if you depreciate equipment over five years, keep records for at least seven years. In case of audit, you’ll need to substantiate deductions.

The bottom line

New optometry practices have many tax write-offs available, from equipment to marketing. The key is to track every business expense and consult a CPA who specializes in healthcare practices. By claiming all eligible deductions, you can reduce your taxable income and keep more of your hard-earned revenue. Start by setting up a system to record expenses today, and review this list with your accountant before filing.

Remember, tax laws change, so always verify current limits and rules with a professional. This guide is a starting point, not a substitute for personalized advice.