Tax Write-Offs for New Speech Therapy Practices: The Complete List

Starting a speech therapy practice comes with significant upfront costs, but many of those expenses can reduce your tax bill. As a new practice owner, you can deduct ordinary and necessary business expenses, from office rent to therapy materials. This guide lists the most common and often overlooked write-offs, with realistic 2026 figures and practical steps to claim them correctly.

1. Startup Costs

The IRS allows you to deduct up to $5,000 in startup costs in your first year, with the rest amortized over 180 months. Startup costs include market research, advertising before opening, training staff, and legal fees for forming your business. If your startup costs exceed $50,000, the $5,000 deduction is reduced dollar-for-dollar. Keep receipts for every pre-opening expense, and track them separately from ongoing costs.

2. Office Space and Utilities

If you rent office space, you can deduct the full rent and utilities (electricity, water, internet, phone) as business expenses. For 2026, average rent for a small therapy office ranges from $1,200 to $3,500 per month depending on location. If you work from home, you may qualify for the home office deduction. Use the simplified method: $5 per square foot, up to 300 square feet, max $1,500 per year. Or use the regular method, which requires tracking actual expenses like mortgage interest, property taxes, and utilities, then calculating the business percentage of your home.

3. Equipment and Furniture

Speech therapy practices need specialized equipment like therapy tools, tablets, and furniture. Under Section 179, you can deduct the full cost of qualifying equipment in the year you place it in service, up to $1,160,000 for 2026. This includes therapy chairs, desks, computers, and software. Alternatively, you can use bonus depreciation (80% for 2026) for new equipment. For example, if you buy a $2,000 tablet, you can deduct the entire amount in year one. Keep invoices and note the date each item was first used.

4. Supplies and Materials

Everyday supplies like paper, pens, printer ink, and therapy materials (e.g., flashcards, articulation cards, language games) are fully deductible. Track these as you go; they add up quickly. For a new practice, expect to spend $500 to $2,000 in the first year on supplies. Use a business credit card or separate account to simplify record-keeping.

5. Professional Services

Fees for accountants, bookkeepers, attorneys, and consultants are deductible. This includes the cost of setting up your business structure (LLC, PLLC) and ongoing tax preparation. Typical costs: accounting services $200 to $500 per month, tax preparation $300 to $1,000 annually, legal fees $150 to $350 per hour. These are ordinary and necessary, so deduct them in full.

6. Insurance

Professional liability insurance (malpractice) is essential and deductible. Also deductible: general liability, business property, and workers’ compensation insurance. Annual premiums for a speech therapy practice range from $500 to $2,500 for malpractice, and $300 to $1,000 for general liability. Pay premiums directly from your business account to keep a clear paper trail.

7. Marketing and Advertising

Website design and hosting, business cards, flyers, online ads (Google, Facebook), and directory listings are all deductible. For 2026, expect to spend $100 to $500 per month on digital ads. Track all marketing expenses separately; they are a common audit trigger, so keep receipts and note the business purpose.

8. Continuing Education and Licensing

Your speech-language pathology license renewal fees, state registration, and continuing education courses (including online webinars) are deductible. License renewal fees range from $50 to $300 per year, and CEUs can cost $50 to $500 per course. Also deductible: professional association dues (e.g., ASHA) and subscriptions to industry journals.

9. Travel and Mileage

If you travel to see clients, attend conferences, or meet with referral sources, you can deduct travel expenses. For 2026, the standard mileage rate is 67 cents per mile. Keep a mileage log with date, purpose, and miles driven. Alternatively, you can deduct actual vehicle expenses (gas, maintenance, insurance) if you track them. For example, if you drive 5,000 business miles, that’s a $3,350 deduction. Also deductible: airfare, hotels, and meals (50% of meals) for business trips.

10. Software and Subscriptions

Practice management software (e.g., clinic scheduling, billing, EHR) is deductible. Monthly costs range from $50 to $300 per month. Also deductible: cloud storage, accounting software (QuickBooks), and telehealth platforms. If you subscribe to any service for business use, deduct the full cost.

11. Employee Costs

If you hire employees (e.g., administrative staff, other therapists), their wages, payroll taxes, and benefits are deductible. For 2026, the federal minimum wage is $7.25, but competitive pay for admin staff is $15 to $20 per hour. You can also deduct employer contributions to retirement plans and health insurance premiums. Keep accurate payroll records and use a payroll service to stay compliant.

12. Retirement Contributions

Contributions to a SEP IRA, SIMPLE IRA, or solo 401(k) are deductible. For 2026, the SEP IRA contribution limit is 25% of net earnings, up to $69,000. A solo 401(k) allows you to contribute up to $23,000 as employee (plus catch-up if over 50) and up to 25% of profits as employer. These deductions reduce your taxable income significantly.

13. Miscellaneous Expenses

Other deductible expenses include bank fees, credit card processing fees, office cleaning, and small tools. Also, if you use your personal phone for business, you can deduct a percentage based on business use. Keep a separate log for these smaller expenses; they add up.

FAQ

Can I deduct startup costs if I haven’t opened yet?

Yes, you can deduct up to $5,000 in startup costs in your first tax year, even if you’re still in the planning phase. You must have started the business with the intent to make a profit.

What if I use my home for both office and therapy sessions?

You can claim the home office deduction if you use a specific area exclusively and regularly for business. The simplified method is easiest: $5 per square foot, up to 300 square feet.

How do I track mileage for business travel?

Use a mileage log app or a simple spreadsheet. Record the date, starting and ending odometer readings, destination, and business purpose. Keep this log for at least three years.

Can I deduct the cost of a new laptop for my practice?

Yes, if you use it for business, you can deduct the full cost under Section 179 or bonus depreciation. For 2026, bonus depreciation is 80%, so you can deduct most of it in year one.

Related guides

• 7 Mistakes New Speech Therapy Practices Make in Their First Year
• S-Corp vs LLC for New Speech Therapy Practices: Which Saves More on Taxes?

The bottom line

New speech therapy practices have many tax write-offs available, from startup costs to equipment and professional services. The key is to keep detailed records and separate business from personal expenses. Work with a CPA who understands small practices to maximize your deductions and avoid errors. Start tracking expenses today, and you’ll save money when you file your 2026 return.