Your actual disposable income is a lot different than how much money you take home each year. Factors such as taxes, cost of living, and malpractice costs vary greatly from state to state. Each of these factors should be considered when choosing where to practice medicine.
We have gathered information from each state to compare these factors to determine where doctors can get the best - and worst - bang for their buck.
Best States
1. Tennessee
Average Physician Compensation: $279,000
Tax Burden: 7.6%
Cost Of Living: 5th lowest state in USA
Malpractice Costs: $8.96 per capita
Other factors to consider: many recreational activities, good hospital systems
2. Mississippi
Average Physician Compensation: $275,000
Tax Burden: 8.4%
Cost Of Living: 1st lowest state in USA
Malpractice Costs: $5.26 per capita
Other factors to consider: population is growing quickly, extremely affordable CoL
3. Oklahoma
Average Physician Compensation: $304,000
Tax Burden: 8.5%
Cost Of Living: 4th lowest state in USA
Malpractice Costs: $11.13 per capita
Other factors to consider: very low rate of nurses to physicians
4. Texas
Average Physician Compensation: $187,437
Tax Burden: No State Income Tax
Cost Of Living: 14th lowest state in USA
Malpractice Costs: $3.74 per capita
Other factors to consider: policies to reduce malpractice payout, many high-profile health institutions, multiple big cities
5. Wyoming
Average Physician Compensation: $312,000
Tax Burden: No State Income Tax
Cost Of Living: 18th lowest state in USA
Malpractice Costs: $7.24 per capita
Other factors to consider:no managed care system, Jackson Hole attracts orthopedic specialists, high physician demand, mostly small communities
Worst States
1. New York
Average Physician Compensation: $249,000
Tax Burden: 12.6%
Cost Of Living: 2nd highest state in USA
Malpractice Costs: $39 per capita
Other factors to consider: high physician density, exorbitant medical liability costs
2. Rhode Island
Average Physician Compensation: $217,000
Tax Burden: 10.5%
Cost Of Living: 10th highest state in USA
Malpractice Costs: $25.47 per capita
Other factors to consider: high levels of unemployment, very low growth in employment for education and health services
3. Maryland
Average Physician Compensation: $186,549
Tax Burden: 10.6%
Cost Of Living: 11th highest state in USA
Malpractice Costs: $18.19 per capita
Other factors to consider: Baltimore is 36th most violent city in the world, high physician density, poor economic growth
4. Massachusetts
Average Physician Compensation: $103,000
Tax Burden: 10.4%
Cost Of Living: 6th highest state in USA
Malpractice Costs: $20.01 per capita
Other factors to consider: world class medical institutions, high rate of overburdened physicians, higher compensation rates in Boston
5. Connecticut
Average Physician Compensation: $99,000
Tax Burden: 11.9%
Cost Of Living: 5th highest state in USA
Malpractice Costs: $14.19 per capita
Other factors to consider: lowest physician morale of all northeastern states, extremely high housing costs
