In 2025, dentistry is still a well-paid profession in the United States. However, with the rising cost of dental education, it is becoming increasingly important to consider the differences in compensation between DSOs and dental practices, along with the lifestyle in those respective practice environments.
According to the latest data from the US Bureau of Labor StatisticsAs of May 2024, the average annual salary for dentists is around $179,210. General dentists, who are the focus of my discussion, typically earn well over six figures. In fact, the average net income for primary care dentists was approximately $218,710 (based on 2023 data). However, this average indicates a significant difference based on practice ownership. Practice owners earned about $228,220 on average, compared to about $177,110 for general dentists during the same period.
These figures highlight how a dental practice – either as an owner or as an employee (often employed by a DSO) – can have a significant impact on revenues.
DSO vs. Private Practice: Who Earns More?
One of the most important considerations for a dentist is the comparison between working for dental service organizations (DSOs) and dentist-owned private practices. A DSO is a legal entity that owns or manages dental practices and directly employs dental professionals. Data consistently shows that dental practice owners typically earn more than DSO employees or dentists. For example, the American Dental Association’s research shows that in-house dentists cost an average of about $260,000, compared to $184,000 for salaried dentists of all types. When we focused specifically on general dentists, owners earned ~$228,000 versus ~$177,000 for non-owners. That’s a gap of about $50,000+ in annual revenue.
Why do private practice owners typically earn more? As owners, dentists open themselves up to additional ways to earn income, including practice profit (net of expenses), in addition to paying a salary for clinical work. In a DSO or employee model, a significant portion of the revenue you generate goes to the organization, and you typically receive a smaller percentage of the production. Owners can also build equity by increasing the value of the practice and thus increase their compensation at the end of their career if they can sell their share of equity in the building for a multiple of their initial investment. Some dentists are often surprised by the appreciation of their equity while realizing a nice payday.
From a purely salary and income point of view, a dental practice therefore offers more advantages. For dentists, this ownership can be akin to owning stock in a company, while a DSO position is more like earning a steady wage. The data clearly supports the financial benefits of ownership for general dentists in 2025.
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Compensation Structures and Benefits: Key Differences
It’s not just a matter of how much dentists earn, but how they earn it (and what benefits the job brings), which differs between DSOs and private practices. There are some notable differences that I have seen. To share a few of the most important:
Payment structure
In private practice, dentists (especially owners) are more likely to pay themselves a fixed salary or draw. In contrast, corporate/DSO dentists are often paid based on a percentage of production or collection model. More than 60% of corporate dentists – both owners within DSOs and associate employees – reported that they were compensated based on their performance (production) rather than a fixed salary. Private practices also use production-based compensation (especially for associates).
But interestingly, 56% of private practice owners received an annual salary (paying themselves a lump sum), while 70% of private practice employees received a percentage of production. This means that a new dentist who joins a private office may be paid a commission, while the owner takes a salary out of profits. Corporate environments, on the other hand, tend to standardize reward formulas or “ties” tied to output among their employees.
Benefit packages
DSOs typically offer more robust benefits than small private offices. About 60% of corporate dental practices offer pension plans and 60% offer health insurance, compared to about 50% of private practices that offer a pension and only 40% offer health insurance. In fact, an employed dentist in a corporate practice is twice as likely to receive health and retirement benefits as an employee in a private practice.
Large organizations can leverage economies of scale to offer benefits such as 401(k) matches, insurance, paid time off, and continuing education stipends – something a solo owner might struggle with. So while the raw salary at a DSO could be lower, the total compensation (salary + benefits) could be competitive for many dentists, especially important for those seeking security and those with high student loans (the American Dental Education Association (ADEA) reports that the average American graduate completes dental school with $292,169 in student loans for dental school).
Job security and support
Business employers usually offer more contractual guarantees (for example a minimum salary floor or a guaranteed patient flow). Many recent graduates are attracted to DSOs because of the perceived stability and lower risk. For example, with a DSO there is no need to invest in or manage a business early on. DSOs also provide comprehensive business support, handling everything from marketing, HR and billing to supplies purchasing. This can translate into peace of mind and more predictable workflows. Private practice owners, on the other hand, take on these business responsibilities immediately, and they can be overwhelming for a new dentist just out of school. However, that responsibility comes with autonomy and the opportunity to have a more direct impact on their earning potential.
Based on this research, it is clear that dental reimbursement rates vary significantly by practice type – so much so that new tools are emerging to track this. For example, SalaryDr (a salary database for dentists and physicians) allows users to explicitly filter by practice environment, as DSO, private, academic, and public health care salaries can vary significantly. The differences in pay structures and benefits are a large part of why these pay disparities exist.
Lifestyle insights for general dentists
Compensation is only one part of any career consideration. Looking beyond compensation, we see the differences in the lifestyles of these dentists. Data on SalaryDr shows that many general dentists enjoy structured work weeks with meaningful flexibility. Most respondents reported 3 to 4 clinical days per week, averaging 30 to 35 hours, with no weekends or phone calls. Vacations varied widely, but many took four to six weeks off a year, with longer breaks possible in doctors’ offices where colleagues filled in. Group employees or DSOs often benefit from predictable schedules, formal PTO and benefits packages, and reduced administrative burdens, creating a stable rhythm of clinical work and time off. Many noted that dentistry itself seems simple compared to the challenge of managing staff and insurance, underscoring why some choose employee roles for their simplicity. To take a closer look at these lifestyle patterns, SalaryDr maintains a growing database of dental salaries and lifestyle submissions, providing real-world insights beyond the average figures.
In contrast, owners and partners emphasized autonomy within their schedules, with some working just three days a week or using shorter daily work hours. However, they also pointed out the downsides: When they’re gone, the practice stops producing and payroll, compliance and workforce management responsibilities follow outside of clinic hours. For newer owners, especially in the first few years after purchase, the workload can increase to six or seven days a week before stabilizing. But over time, ownership can translate into a better balance: hiring employees, refining systems and reclaiming weekends.
In short, employees trade higher benefits and predictability for less control, while owners trade administrative stress for long-term flexibility and lifestyle design once their practices mature.
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The bottom line
The choice between DSO employment and private practice comes down to personal priorities, and it will ultimately be a choice of personal preference based on many factors, including lifestyle and family situations. However, if you value immediate stability, mentorship, and fewer administrative headaches, a DSO or associate role may be a smart move. If instead your goal is to maximize income, equality, and autonomy and you are willing to put in the effort, then pursuing ownership is the clear path to greater financial reward.
Many dentists end up combining these paths: They start in a DSO or group to gain experience and pay off loans, then move on to buying or starting a practice once they’re ready. By understanding salary data and lifestyle realities in 2025, dentists can make informed career decisions that fit both their financial goals and desired quality of life.
What do you think? Would you rather work for a DSO and potentially make less money, or become a practice owner and have the opportunity to earn a higher salary? How much would property be worth to you?
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