Hair stylists can claim some serious write-offs. It doesn’t matter if you rent a booth, own a salon, or work as a 1099 independent contractor — self-employed hair stylist tax write-offs can put real money back in your pocket.
But navigating taxes can feel like untangling a head full of knots. Let’s cut through the confusion on tax deductions for self-employed hair stylists, from supplies and tools to studio rent and marketing expenses.
Jump ahead to learn:
While W2 employees automatically get taxes taken out of each paycheck, self-employed hairdressers handle their own tax payments. That means you’re in charge of calculating what you owe and making sure your money gets to the Internal Revenue Service (IRS).
Self-employed people typically pay quarterly or annually, depending on how their business is structured.
Your state taxes and federal taxes depend on three main factors:
Tax deductions are one of the best perks of being self-employed. They lower the amount of income you actually pay taxes on. When your taxable income is less, you end up paying less in taxes.
For example, if you earn $10,000 in a year but spend $2,000 on deductible business expenses, you only pay taxes on $8,000. Those scissors and styling products just saved you some money by lowering your tax payments.
Typically, you’d use the Schedule C tax form to report income and expenses from your business.
While managing your own income and taxes gives you more control, it also means you’re responsible if something goes wrong — like if a client claims the dye you used damaged their hair. Fortunately, having hair stylist insurance can help protect you if a client says you made a mistake like this. It is also usually a deductible expense from your taxes.
Some taxpayers mistakenly think they can use every expense as a tax claim. While that would be terrific, that’s not quite how it works. But you still have plenty of opportunities to save. The IRS looks for two main things when it comes to barber or hair stylist tax write-offs:
The IRS calls these “ordinary and necessary” expenses. In plain English? If it’s common in the beauty industry and helps you run your business, it probably qualifies. Think styling tools, booth rent, and professional products.
But keep in mind that, even when something is tax-deductible, there may be limits on how much you can claim.
For example, you can only deduct so much for business-related entertainment, charitable donations, automobile mileage, and even your self-employed retirement plan.
Quick tip: If you use a vehicle for business purposes, like making house calls for special events like weddings — standard car insurance doesn’t cover accidents that happen when driving for business. You’ll need commercial auto insurance to be fully covered (the premiums are often tax-deductible, as well).
For the most up-to-date rules on what is and isn’t deductible, check the IRS’s website or ask your accountant to confirm.
Your styling skills pay the bills, now let’s make sure you’re not overpaying on taxes. Here’s your complete guide to hair stylist write-offs that could save you serious money.
Of all the barber tax deductions, tools and supplies may be the easiest and most common option. This includes the essential equipment and supplies you use every day:
Many stylists add tools and equipment insurance to cover expensive items like professional scissors. If they’re stolen or damaged, insurance can help with replacement costs. Salon owners may want to consider a Business Owner’s Policy (BOP), which can protect your equipment, space, and business in one package. The premiums you pay are typically tax-deductible, too.
Just make sure to keep your receipts — they’re your proof for business taxes (in case you get audited) and insurance claims.
Vehicle expenses can become tax write-offs if your business keeps you on the road, whether for work-related supply runs, mobile styling services, or traveling between locations. Here’s what you can typically deduct:
Note that regular commuting to your primary workplace isn’t deductible, but travel between work locations or for business errands usually is.
The standard mileage rate for business use is 67 cents per mile in 2024, up 1.5 cents from 2023. Watch for updated 2025 mileage rates from the IRS this December.
Remember that if you use your personal vehicle for business, your regular auto insurance may not provide enough coverage. Consider a commercial auto insurance policy for proper protection (and you can include the cost as a business expense on your taxes).
Insurance premiums that protect your business generally count as tax write-offs for the beauty industry. For instance, your hair stylist insurance can protect you from the business risks you face when working with clients and help lower your taxable income.
Essential insurance coverage for beauty professionals includes:
A Business Owner’s Policy (BOP) combines several of these coverages into one package, often at a better rate than purchasing them separately.
Keeping up with hair trends and improving your skills is always good for business. Plus, it’s good for your tax return.
The beauty industry moves fast, and the IRS recognizes that continuing education is part of running a successful styling business. You can deduct costs for:
For conferences and training, think beyond the price of admission — you can often deduct related expenses for travel and materials, too.
As a self-employed person, you’ll pay the full 15.3% self-employment tax (on top of the income tax you also have to pay). It covers both the employer and employee sides of Social Security and Medicare taxes. Yeah, not great.
But here’s the silver lining: The IRS lets you deduct half of your self-employment tax when calculating your adjusted gross income. This deduction helps offset the higher tax rate that comes with being your own boss.
Your professional hair stylist license costs can count as a tax deduction. So, if your state or local jurisdiction requires you to have a hair stylist license, add that to your hair stylist tax deduction checklist.
Health insurance premiums can be a significant expense, but they can also count as a significant tax break for self-employed beauty professionals. You can typically deduct 100% of your medical, dental, and vision insurance premiums, as long as you’re paying for them yourself, not through a spouse’s plan or employer.
There’s one caveat: If you get a government subsidy for your health insurance, you can only deduct the amount you actually pay each month, not the plan’s full price.
Hair stylists have lots of places they can call an office. Maybe you’re a hair salon owner with a brick-and-mortar location, you rent a chair at a salon space, travel to venues as a bridal stylist, or work from home.
Business expenses related to running your office can serve as tax write-offs. They might include:
You can also take advantage of a home office deduction if you run your business from home. This applies to any space you use exclusively and regularly for your business, whether you rent or own.
The IRS gives you two options for calculating your home office tax deduction for hair stylists:
Track your home office expenses carefully throughout the year and save those receipts and documents to support your business deductions during tax season.
Any money you spend to grow your beauty business, from marketing to advertising, can help lower your taxable income. Tax deductions for self-employed hair stylists include:
Don’t forget the promotional swag you might give customers, like pens, combs or travel shampoo — they also count.
Running a successful hairstyling business often means bringing in experts to handle specialized tasks. It can open the door to valuable tax write-offs for salon owners, especially. If you need extra help, you can usually deduct fees for:
For example, you may need to consult a lawyer for help navigating a professional liability claim from a client threatening to sue you for damaging their hair. Or hire someone to manage your bookkeeping and record your costs and earnings correctly.
Whatever the case, if the fees are necessary for operating your business, write them off.
The world of hair stylist tax deductions is extensive. Consider working with a tax professional or CPA who understands the beauty industry. They can help identify every deduction for your tax situation while keeping you compliant with tax laws.
NEXT Insurance is 100% dedicated to helping professionals like you. Whether you rent a booth, work as an independent contractor, or own a salon, we’ll help you get affordable hair stylist insurance to fit your business.
All our services are available online. Get a quote, choose your options, and secure coverage in less than 10 minutes. Plus, you can access your policy and get your certificate of insurance 24/7 via the web or mobile app.
Get an instant quote online today.
NEXT does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors for personalized guidance.
Kim Mercado is a content editor at NEXT. She writes and edits content for small business owners, and enjoys helping entrepreneurs solve their business challenges and learn about insurance. Kim has contributed to Salesforce, Samsara and Google.
You can find Kim trying new recipes and cheering the 49ers.
