Tax Deductions for Hairstylists
Whether you rent a booth, own a salon, or work as an independent stylist, understanding your tax deductions can save you thousands each year.
Common Deductions for Hairstylists
Booth Rental or Chair Rent
Monthly rent paid to a salon for your chair or booth space. This is typically the largest expense for booth-renting stylists.
Styling Tools and Equipment
Scissors, shears, clippers, flat irons, curling irons, blow dryers, and other professional styling tools.
Hair Products and Supplies
Shampoos, conditioners, styling products, color supplies, developer, foils, and other products you purchase for client services.
Continuing Education
Hair styling classes, color certification courses, technique workshops, and industry trade shows.
Licensing and Certifications
State cosmetology license renewal fees, specialty certifications, and required continuing education credits.
Professional Liability Insurance
Insurance coverage protecting against claims of injury or damage during services.
Marketing and Client Acquisition
Business cards, website, social media advertising, booking software, and promotional materials.
Uniforms and Aprons
Smocks, aprons, and professional attire required for work that isn't suitable for everyday wear.
Expenses to Track
Booth Renter vs. Employee Status
Your tax obligations depend on how you're classified:
Booth Renter (Self-Employed)
Most independent stylists are booth renters. You're self-employed if you:
- Rent a chair or booth space
- Set your own schedule and prices
- Provide your own tools and products
- Handle your own client payments
As a booth renter, you file Schedule C and can deduct all business expenses.
W-2 Employee
If the salon controls your schedule, sets prices, and provides supplies, you may be an employee. As a W-2 employee:
- The salon should withhold taxes
- Unreimbursed expenses are generally not deductible federally (2018-2025)
- Some states still allow employee expense deductions
Managing Cash Tips and Income
Many stylists receive cash tips. Remember:
- All tips are taxable income - both cash and credit card tips
- Keep a daily log of cash tips received
- Report tip income on your tax return even if not reported on a 1099
- Accurate reporting prevents issues if audited
Underreporting income is a serious tax violation. Track all income carefully.
Product Inventory Deductions
If you purchase products to resell to clients:
- Cost of goods sold: Products purchased for resale are deducted when sold
- Personal use products: Don't deduct products you use personally
- Expired products: Products that expire before sale can be written off as a loss
For products used during services (not resold), deduct the full purchase price as a business expense.
Building Your Styling Business
Expenses for growing your client base are deductible:
- Booking software: Square Appointments, Vagaro, StyleSeat subscriptions
- Portfolio website: Hosting, domain, and design costs
- Social media: Advertising costs on Instagram, Facebook, TikTok
- Referral gifts: Small gifts for clients who refer new business
- Professional photos: Portfolio images of your work
Home Salon Considerations
If you operate a salon from home:
- Home office deduction: Dedicated salon space qualifies
- Utilities: Portion of electric, water, and heating for salon space
- Salon equipment: Styling chair, mirror stations, shampoo bowl
- Business insurance: Liability coverage for home-based business
- Local permits: Business license and home occupation permit fees
Make sure to check local zoning laws and obtain required permits before operating a home salon.
Quarterly Tax Payments
As a self-employed stylist, you're responsible for:
- Self-employment tax: 15.3% for Social Security and Medicare
- Income tax: Based on your tax bracket
Make quarterly estimated payments to avoid penalties. Set aside 25-30% of your earnings for taxes and pay quarterly on:
- April 15, June 15, September 15, and January 15
Keep salon supply receipts organized by month - many stylists spend more than they realize on products.
Track booth rent payments even if paid in cash - get receipts or write checks for documentation.
Photograph your tools and equipment for insurance and depreciation records.
Document continuing education classes with certificates and payment receipts.
Start Finding Your Deductions
Connect your accounts and our AI will automatically identify deductions you're missing.
Stop missing deductions as a hairstylist
Our AI automatically categorizes your expenses and finds deductions specific to your profession. Start saving today.