Thinking of making a move in 2022? Whether you are a dermatologist looking to open a practice or simply want a change of scenery, here are the top 10 states with the highest compensation.
Deciding where to practice may seem as simple as choosing wherever your heart desires. But the states aren’t equal playing fields for dermatologists. There are some major differences between states, especially in physician compensation. States that have more teaching hospitals and universities may reflect the lower compensation common in academia, while states that have physician shortages may have increased their salaries to fill open positions.
Medscape’s most recent Physician Compensation Report revealed the top-earning states for physicians, and the results may surprise you. Keep an open mind and learn how you may grow your income in a different state.
1. Alabama
•#1 (Best States for Dermatologists, Zippia, 2020)
•#12 (Best and Worst States for Doctors, WalletHub, 2021)
•#6 (Physicians’ Top 10 Places to Live and Work, Physician’s Thrive)
•#6 (Top States for Doing Business, Area Development, 2021)
Alabama earns the top spot in the nation for physician compensation, with an average of $348,000 a year. Birmingham dermatologist Corey L. Hartman, MD, FAAD, says Alabama is a great state for physicians and an ideal place to practice medicine. “Not only is Alabama pro-business and encourages physicians to be entrepreneurs and own their own practices, but it remains the only state where only physicians direct and administer injectable treatments like neurotoxins and dermal fillers. This ensures not only the utmost in patient safety, but also maintains the highest standard of care.”
With only a little more than a dozen [MOU1] dermatologists in practice in the state, competition is low. Alabama ranks first in the WalletHub rankings for physician opportunity and competition.
The state also ranks as one of the most business-friendly states in the country. Area Development ranks Alabama as the state with the speediest permitting process. Alabama is tax friendly, too: The income tax rate is 2-6%, and the median property tax rate is $395 per $100,000. In fact, Rocket Mortgage lists Alabama as having the second lowest property tax rates in the nation. Other benefits include affordable housing, low cost of living and low malpractice premium payouts.
2. Kentucky
•#5 (Best States for Dermatologists, Zippia, 2020)
The Bluegrass State offers a low cost of doing business and affordable housing. The income tax rate is similar to Alabama – 2-6% – and about 125 dermatologists practice here. While the state has a mostly rural population, the job market is growing. Skin cancer specialists are in need in Kentucky: The state has the 11th highest melanoma incidence rate in the country.
3. Oklahoma
•#15 (Best States for Dermatologists, Zippia, 2020)
•#17 (Best and Worst States for Doctors, WalletHub, 2021)
The Sooner State offers a low cost of living and affordable housing. U.S. News & World Report ranks Oklahoma as the third most affordable state. There are about 75 dermatologists practicing in Oklahoma with a state income tax rate of 0.5-5%. Oklahoma has plenty of opportunities for dermatologists: The state ranks second in the WalletHub rankings for physician opportunity and competition.
4. Indiana
•#16 (Best States for Dermatologists, Zippia, 2020)
•#7 (Top States for Doing Business, Area Development, 2021)
Indiana is one of the top states for business because of a strong infrastructure and low cost of doing business. It’s the tenth most affordable state in which to live. Indiana has an income tax rate of 3.30% and about 150 dermatologists. Indiana is one of six states that have a cap on total damages (economic and non-economic) in medical malpractice cases, according to Rosenbaum & Associates. The state ranks third in the WalletHub physician opportunity and competition rankings.
5. Missouri
•#13 (Best States for Dermatologists, Zippia, 2020)
The Show Me State has a low cost of doing business and an affordable real estate market. The state is the eighth most affordable with an income tax rate of 1.5-6%. The state’s nearly 200 dermatologists have a bright future as Missouri ranks fifth in WalletHub’s rankings of physician opportunity and competition. Missouri is also one of 24 states that caps non-economic damages in medical malpractice cases.
6. South Carolina
•#8 (Best States for Dermatologists, Zippia, 2020)
•#4 (Top States for Doing Business, Area Development, 2021)
South Carolina has the sixth lowest property tax rate in the nation with a real estate tax rate of 0.57%. The income tax rate is 0-7% with about 150 dermatologists. South Carolina also caps non-economic damages in medical malpractice cases. Dermatologists will be even more in demand in the future as the state is the fourth most popular state for those who are moving. And, Area Development ranked the state as having the most favorable regulatory environment and as the national leader in business incentive programs.
7. Florida
•#7 (Best States for Dermatologists, Zippia, 2020)
•#10 (Top States for Doing Business, Area Development, 2021)
The Sunshine State is the most tax-friendly state on the list with no income tax. While more than 900 dermatologists already practice in Florida, the state’s large – and aging — population offers an expansive client base, and the state is in need of more dermatologists, especially those who treat skin cancer and sun damage. Approximately one in 10 Floridians has been told they have skin cancer, according to AIM at Melanoma. The state is growing, too. Florida is the seventh most popular state among people who are moving.
8. Georgia
•#9 (Best States for Dermatologists, Zippia, 2020)
•#15 (Best and Worst States for Doctors, WalletHub, 2021)
•#1 (Top States for Doing Business, Area Development, 2021)
Georgia takes the top spot in Area Development’s Top States for Doing Business. The state is noted for its site-readiness programs, available real estate, workforce development programs, and overall cost of doing business. Housing is more affordable in Georgia than in the rest of the country, and Georgia is the sixth most affordable state. Since the population is growing, there will be a greater need for dermatologists in the coming years. The income tax rate is 1-6 percent and about 275 dermatologists practice here.
9. Iowa
•#10 (Best States for Dermatologists, Zippia)
•#10 (Best and Worst States for Doctors, WalletHub, 2021)
•#1 (Physicians’ Top 10 Places to Live and Work, Physician’s Thrive)
•#17 (“Best Places to Practice 2020: In the times of Covid,” Medscape, 2020)
The Hawkeye State has a low rate of adverse action against physicians, and the state also caps its non-economic damages in medical malpractice cases. The income tax rate is 0.36-8.98% and about 75 dermatologists practice in Iowa. Skin cancer specialists are in demand in Iowa: The state has the seventh highest rate of melanoma. Iowa also ranks fourth in physician opportunity and competition.
10. Tennessee
•#2 (Best States for Dermatologists, Zippia, 2020)
•#6 (Best and Worst States for Doctors, WalletHub, 2021)
•#8 (Physicians’ Top 10 Places to Live and Work, Physician’s Thrive)
•#3 (Top States for Doing Business, Area Development, 2021)
Tennessee has a strong economy and no income tax on salary and wages. The state is the seventh most affordable state in the country. The state has about 175 dermatologists with a cap on non-economic damages in medical malpractice cases. The Volunteer State has open opportunities for dermatologists as the state ranks ninth in physician opportunity and competition. Plus, Area Development lists Tennessee as having the second most cooperative and responsive state government, and as the state with the most well-regarded site-readiness initiatives.
Think a location change might be right for you? View available jobs on the Dermatology Authority Job Board.
By: Kim Campbell
