Are Dental Implants Tax Deductible? 

The answer is YES!  According to the IRS website, payments for “false teeth” ARE eligible for deduction if they surpass 7.5% of your Adjusted Gross Income. This means you can invest in a new set of teeth while also enjoying tax savings. 

Pearl Dental Group in Baton Rouge, LA  understands that achieving top-quality comprehensive dentistry often requires a significant financial commitment. Planning for taxes when investing in such important treatment can be advantageous for both your oral health and your wallet. Let’s delve into an example to illustrate how tax planning can work for you. 

Let’s assume an adjusted gross income (AGI) of $65,000 and a 25% tax bracket. In this scenario, any dental expenses beyond 7.5% of the AGI ($4,875) become fully tax-deductible. 

For instance, if your implant or cosmetic dentistry treatment costs $50,000, then $45,125 becomes fully tax-deductible. By claiming this deduction on your tax return, you could potentially receive a tax refund of around $11,281. 

Now, let’s explore financing options. A home equity loan covering the entire treatment cost ($50,000) might entail a monthly payment of roughly $430 (assuming a 6.15% interest rate for 15 years). Importantly, the interest on this loan would be fully tax-deductible throughout its duration. 

If you applied the tax refund directly to the loan and then refinanced it, your new payment could drop to approximately $329, with the interest portion of the loan still tax-deductible over its life. 

By proceeding with your dental care now, not only do you lock in today’s costs (given that the average cost for complex dental care increases by 5-7% yearly), but the IRS offers significant benefits from a tax perspective. Essentially, the IRS could refund you $11,281 to enhance your health! 

It’s important to note that while Pearl dentists excel in delivering exceptional dentistry, tax matters are complex and extensive. Therefore, this is merely a suggested strategy to leverage your dental care expenses. We recommend consulting with your tax advisor to explore the specifics of your circumstances and the potential benefits of comprehensive dental care with today’s dollars. 

For more information, you can refer to IRS resources such as: