Physician Salary Overview
The Physician is one of the most important roles in the Healthcare sector of the US economy in 2026. With a median annual salary of $252,000, compensation for this position ranges from $148,800 at the entry level to $396,000 for highly experienced professionals in top-paying markets.
This career typically requires Doctor of Medicine (MD) or Doctor of Osteopathic Medicine (DO) plus 3-7 year residency depending on specialty; board certification required. Valued professional credentials include USMLE or COMLEX for licensure, ABMS board certification in specialty, state medical license, DEA registration, maintenance of certification (MOC). On a day-to-day basis, professionals in this role focus on diagnosing and treating diseases, ordering and interpreting diagnostic tests, prescribing treatments and medications, performing procedures, managing complex chronic conditions, coordinating specialist referrals, supervising residents, and maintaining evidence-based practice.
The job market for this position shows 3% from 2022-2032 with projected physician shortage of 37,800-124,000 by 2034 (AAMC estimates) creating strong demand growth, with demand strongest in specializations including internal medicine, family medicine, cardiology, gastroenterology, dermatology, endocrinology, and hospitalist medicine. AI assists with diagnosis and imaging interpretation, but the physician-patient relationship, complex clinical decision-making, and multi-system care coordination remain fundamentally human
Salary Range: The typical Physician in the US earns between $148,800 and $396,000 per year, with a median of $252,000.
What Does a Physician Do?
A Physician spends their workday diagnosing and treating diseases, ordering and interpreting diagnostic tests, prescribing treatments and medications, performing procedures, managing complex chronic conditions, coordinating specialist referrals, supervising residents, and maintaining evidence-based practice. The role requires proficiency with industry-standard tools and technologies including Electronic health records (Epic, Cerner), diagnostic equipment (stethoscope, otoscope), point-of-care ultrasound, clinical decision support systems, telemedicine platforms.
The typical work environment involves hospitals, medical offices, academic medical centers, or telemedicine; hours vary widely by specialty (dermatology ~45 hrs/week vs. surgery ~60+). Within the profession, you can specialize in areas such as internal medicine, family medicine, cardiology, gastroenterology, dermatology, endocrinology, and hospitalist medicine, each requiring different skill sets and offering different compensation levels.
Day-to-day responsibilities vary based on seniority and organization size. Entry-level professionals often focus on execution tasks under supervision, while senior professionals take on strategic planning, mentoring, and cross-functional leadership.
Physician Salary by Experience
Compensation for a Physician increases substantially with experience. Entry-level professionals (0-2 years) typically earn around $151,200, while mid-career professionals (3-6 years) reach the median of $252,000. Senior professionals (7-12 years) earn approximately $317,520, and those in lead or principal roles can expect $383,040 or more.
The typical career progression follows this path: Resident → Fellow → Attending Physician → Senior Physician → Medical Director → Department Chair → Chief Medical Officer. Each advancement typically requires 2-4 years and demonstrating increasing scope of responsibility.
| Level | Salary | Hourly | Take-Home |
|---|---|---|---|
| Entry | $151,200 | $73/hr | $103,899 |
| Mid | $252,000 | $121/hr | $164,483 |
| Senior | $317,520 | $153/hr | $199,844 |
| Lead | $383,040 | $184/hr | $234,515 |
Physician Salary by State (After Tax)
Gross salary, federal tax, state tax, and estimated take-home pay for a Physician in each US state.
Geographic location significantly impacts Physician compensation. The top-paying states for this role include South Dakota (cost-adjusted highest), North Dakota (rural premium), Wisconsin (competitive with moderate costs), Kentucky (strong demand), Nebraska (favorable practice environment).
States with no income tax (Texas, Florida, Washington, Nevada, Tennessee) offer an effective pay boost of 3-9% compared to high-tax states like California or New York, though these states often compensate with higher cost of living or property taxes. When evaluating offers, consider both gross salary and after-tax take-home pay.
| State | Gross | Federal | State Tax | FICA | Take-Home | Rate |
|---|---|---|---|---|---|---|
| Alabama | $252,000 | $52,903 | $12,435 | $15,040 | $171,622 | 31.9% |
| Alaska | $252,000 | $52,903 | $0 | $15,040 | $184,057 | 27.0% |
| Arizona | $252,000 | $52,903 | $5,935 | $15,040 | $178,122 | 29.3% |
| Arkansas | $252,000 | $52,903 | $10,862 | $15,040 | $173,195 | 31.3% |
| California | $252,000 | $52,903 | $19,574 | $15,040 | $164,483 | 34.7% |
| Colorado | $252,000 | $52,903 | $10,428 | $15,040 | $173,629 | 31.1% |
| Connecticut | $252,000 | $52,903 | $14,138 | $15,040 | $169,919 | 32.6% |
| Delaware | $252,000 | $52,903 | $15,401 | $15,040 | $168,656 | 33.1% |
| District of Columbia | $252,000 | $52,903 | $18,579 | $15,040 | $165,478 | 34.3% |
| Florida | $252,000 | $52,903 | $0 | $15,040 | $184,057 | 27.0% |
| Georgia | $252,000 | $52,903 | $13,176 | $15,040 | $170,881 | 32.2% |
| Hawaii | $252,000 | $52,903 | $21,857 | $15,040 | $162,200 | 35.6% |
| Idaho | $252,000 | $52,903 | $13,769 | $15,040 | $170,288 | 32.4% |
| Illinois | $252,000 | $52,903 | $12,337 | $15,040 | $171,720 | 31.9% |
| Indiana | $252,000 | $52,903 | $7,686 | $15,040 | $176,371 | 30.0% |
| Iowa | $252,000 | $52,903 | $9,576 | $15,040 | $174,481 | 30.8% |
| Kansas | $252,000 | $52,903 | $13,707 | $15,040 | $170,350 | 32.4% |
| Kentucky | $252,000 | $52,903 | $9,954 | $15,040 | $174,103 | 30.9% |
| Louisiana | $252,000 | $52,903 | $10,129 | $15,040 | $173,928 | 31.0% |
| Maine | $252,000 | $52,903 | $16,480 | $15,040 | $167,577 | 33.5% |
| Maryland | $252,000 | $52,903 | $12,730 | $15,040 | $171,327 | 32.0% |
| Massachusetts | $252,000 | $52,903 | $12,380 | $15,040 | $171,677 | 31.9% |
| Michigan | $252,000 | $52,903 | $10,472 | $15,040 | $173,585 | 31.1% |
| Minnesota | $252,000 | $52,903 | $18,167 | $15,040 | $165,890 | 34.2% |
| Mississippi | $252,000 | $52,903 | $11,266 | $15,040 | $172,791 | 31.4% |
| Missouri | $252,000 | $52,903 | $11,225 | $15,040 | $172,832 | 31.4% |
| Montana | $252,000 | $52,903 | $13,761 | $15,040 | $170,296 | 32.4% |
| Nebraska | $252,000 | $52,903 | $13,196 | $15,040 | $170,861 | 32.2% |
| Nevada | $252,000 | $52,903 | $0 | $15,040 | $184,057 | 27.0% |
| New Hampshire | $252,000 | $52,903 | $0 | $15,040 | $184,057 | 27.0% |
| New Jersey | $252,000 | $52,903 | $13,926 | $15,040 | $170,131 | 32.5% |
| New Mexico | $252,000 | $52,903 | $11,627 | $15,040 | $172,430 | 31.6% |
| New York | $252,000 | $52,903 | $14,885 | $15,040 | $169,171 | 32.9% |
| North Carolina | $252,000 | $52,903 | $10,766 | $15,040 | $173,291 | 31.2% |
| North Dakota | $252,000 | $52,903 | $4,629 | $15,040 | $179,428 | 28.8% |
| Ohio | $252,000 | $52,903 | $7,350 | $15,040 | $176,707 | 29.9% |
| Oklahoma | $252,000 | $52,903 | $11,480 | $15,040 | $172,577 | 31.5% |
| Oregon | $252,000 | $52,903 | $22,954 | $15,040 | $161,103 | 36.1% |
| Pennsylvania | $252,000 | $52,903 | $7,736 | $15,040 | $176,320 | 30.0% |
| Rhode Island | $252,000 | $52,903 | $11,658 | $15,040 | $172,399 | 31.6% |
| South Carolina | $252,000 | $52,903 | $14,501 | $15,040 | $169,556 | 32.7% |
| South Dakota | $252,000 | $52,903 | $0 | $15,040 | $184,057 | 27.0% |
| Tennessee | $252,000 | $52,903 | $0 | $15,040 | $184,057 | 27.0% |
| Texas | $252,000 | $52,903 | $0 | $15,040 | $184,057 | 27.0% |
| Utah | $252,000 | $52,903 | $11,718 | $15,040 | $172,339 | 31.6% |
| Vermont | $252,000 | $52,903 | $16,217 | $15,040 | $167,840 | 33.4% |
| Virginia | $252,000 | $52,903 | $13,974 | $15,040 | $170,083 | 32.5% |
| Washington | $252,000 | $52,903 | $0 | $15,040 | $184,057 | 27.0% |
| West Virginia | $252,000 | $52,903 | $12,014 | $15,040 | $172,043 | 31.7% |
| Wisconsin | $252,000 | $52,903 | $12,268 | $15,040 | $171,789 | 31.8% |
| Wyoming | $252,000 | $52,903 | $0 | $15,040 | $184,057 | 27.0% |
Top Cities for Physician Pay
Rural areas and smaller metros consistently pay $50-150K more than major academic centers; private practice in affluent suburbs offers top compensation
When comparing city compensation, factor in cost of living differences. A $252,000 salary in a mid-cost city often provides more purchasing power than a 20-30% premium in San Francisco or New York.
| City | Avg Salary |
|---|---|
| Milwaukee, WI | $277,200 |
| Omaha, NE | $277,200 |
| Indianapolis, IN | $277,200 |
| Nashville, TN | $277,200 |
| Birmingham, AL | $277,200 |
Calculate Physician Take-Home Pay
Adjust the state and filing status to see your estimated after-tax income.
Estimated Take-Home Pay
Tax Breakdown
Tax Distribution
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Pay Frequency Breakdown
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How to Become a Physician
Education: The typical path to becoming a Physician involves earning a Doctor of Medicine (MD) or Doctor of Osteopathic Medicine (DO) plus 3-7 year residency depending on specialty; board certification required. Some professionals enter the field through alternative pathways, but formal education provides the strongest foundation for long-term career growth.
Certifications: Key professional credentials for this role include USMLE or COMLEX for licensure, ABMS board certification in specialty, state medical license, DEA registration, maintenance of certification (MOC). These certifications demonstrate expertise to employers and often directly correlate with higher compensation.
Skills & Tools: Proficiency with Electronic health records (Epic, Cerner), diagnostic equipment (stethoscope, otoscope), point-of-care ultrasound, clinical decision support systems, telemedicine platforms is expected for competitive candidates. Building a portfolio of work or gaining practical experience through internships, projects, or entry-level positions is essential for breaking into the field.
Timeline: Most professionals reach mid-level competency within 3-5 years of entering the field, with senior positions typically requiring 7-12 years of progressive experience.
Physician Career Outlook
Employment for the Physician role is projected to grow 3% from 2022-2032 with projected physician shortage of 37,800-124,000 by 2034 (AAMC estimates) creating strong demand, reflecting strong demand driven by industry evolution and changing workforce needs. The most in-demand specializations include internal medicine, family medicine, cardiology, gastroenterology, dermatology, endocrinology, and hospitalist medicine.
AI and Automation Impact: AI assists with diagnosis and imaging interpretation, but the physician-patient relationship, complex clinical decision-making, and multi-system care coordination remain fundamentally human
Professionals who combine deep technical expertise with strong communication skills and adaptability will find the best opportunities in this evolving landscape.
Tax Tips for Physician Earnings
At the highest tax brackets (35-37%), every tax optimization strategy matters significantly. A comprehensive approach can save $20,000-$50,000+ annually:
Additional Medicare Tax: You pay an extra 0.9% Medicare tax on earnings above $200,000 (single) or $250,000 (married). Strategies like maximizing pre-tax retirement contributions can reduce this exposure.
Net Investment Income Tax (NIIT): A 3.8% surtax applies to investment income when your MAGI exceeds $200,000 (single). Tax-loss harvesting, municipal bonds, and Roth conversions can help manage NIIT exposure.
Tax-Loss Harvesting at Scale: With substantial taxable portfolios, systematic tax-loss harvesting can offset gains and shelter up to $3,000 of ordinary income annually, with unlimited loss carryforward.
Deferred Compensation Plans: If available through your employer, non-qualified deferred compensation (NQDC) plans let you defer income to future years when you might be in a lower bracket (retirement).
Charitable Remainder Trusts: For highly appreciated assets, a CRT provides an income stream, avoids capital gains, and generates a charitable deduction. This is particularly effective for concentrated stock positions.
State Tax Optimization: At these income levels, your state tax burden can exceed $15,000-$25,000 annually. If your work allows geographic flexibility, moving from a high-tax state (CA, NY) to no-income-tax state (TX, FL, WA) creates immediate savings.
Physician Salary FAQ
The median annual salary for a Physician in the United States is $252,000 in 2026. Compensation typically ranges from $148,800 for entry-level positions to $396,000 for experienced professionals in top-paying markets. Actual pay depends on experience, location, certifications, and employer size.
On a $252,000 salary, a Physician takes home approximately $85,000-$105,000 after federal, state, and FICA taxes, depending on the state and filing status. In no-income-tax states like Texas or Florida, take-home pay is higher than in states like California or New York.
Entry-level Physician professionals with 0-2 years of experience can expect to earn around $151,200 per year. Starting salaries vary significantly by location, with major metro areas offering 15-30% premiums over rural areas.
The highest-paying states for Physician professionals include WI, NE, NH. However, when adjusted for cost of living, some mid-tier states offer better purchasing power. No-income-tax states provide an additional 3-9% effective pay boost.
The median hourly equivalent for a Physician is approximately $121.15, based on 2,080 working hours per year. Actual hourly rates vary by experience level, with senior professionals earning $10-30 more per hour than entry-level.
To become a Physician, you typically need Doctor of Medicine (MD) or Doctor of Osteopathic Medicine (DO) plus 3-7 year residency depending on specialty; board certification required. Valuable certifications include USMLE or COMLEX for licensure, ABMS board certification in specialty, state medical license, DEA registration, maintenance of certification (MOC). Most employers also value practical experience gained through internships or entry-level positions.
Employment for Physician professionals is projected to grow 3% from 2022-2032 with projected physician shortage of 37,800-124,000 by 2034 (AAMC estimates) creating strong demand. AI assists with diagnosis and imaging interpretation, but the physician-patient relationship, complex clinical decision-making, and multi-system care coordination remain fundamentally human The strongest opportunities are in internal medicine, family medicine, cardiology, gastroenterology, dermatology, endocrinology, and hospitalist medicine.
A Physician typically spends their day diagnosing and treating diseases, ordering and interpreting diagnostic tests, prescribing treatments and medications, performing procedures, managing complex chronic conditions, coordinating specialist referrals, supervising residents, and maintaining evidence-based practice. The work environment involves hospitals, medical offices, academic medical centers, or telemedicine; hours vary widely by specialty (dermatology ~45 hrs/week vs. surgery ~60+).