This might come as a surprise, but tax season doesn't have to be stressful – yes, even when you run a business.

The key is knowing what forms, deductions, and deadlines should be on your radar. And while this seems easier said than done, staying informed helps you pay less and pocket more.

Start with learning about tax write-offs for salon owners. New blow dryers, comfy chairs, insurance – all this and more is deductible. We'll walk you through everything you need to know about what you can (and can't) write off on your taxes. 

About Tax Write-Offs for the Beauty Industry 

If you run a salon, you have to pay business taxes according to how much income you earn each year. A tax deduction, also called a tax write-off, is an amount you can deduct from your taxable income, lowering the bill when it comes time to file with the IRS.

For each expense you claim as a deduction on the return, such as supplies, rent, and utilities, the less you pay in taxes, potentially keeping more money that fuels business growth. For example, if the salon earns $100,000 in a year and claims $30,000 in tax write-offs, the IRS only taxes you on $70,000. This means you're taxed as if you made $70,000, not $100,000, which reduces your tax bill and indirectly supports your business's financial health.

If you’re a fan of saving money (who isn’t?), it's important to claim every tax deduction you're entitled to. That means you need to do two things: know what counts as a write-off, and keep meticulous business records about the salon's expenses. This prepares you for tax season and keeps you from scrambling for receipts later. It's helpful to develop a system for this, like an online spreadsheet to record your income and expenses and an app that scans and keeps receipts for you. 

Think of tracking your income and expenses as financial self-care for your business. But instead of hair masks and facials, you’re staying organized and informed about easy tax write-offs – helping you make intelligent financial decisions and thrive long-term.

Hair Salon Expenses List for Tax Deductions  

For an expense to qualify as a business tax write-off, it must be commonly accepted in the beauty industry and beneficial for your salon – criteria the IRS lists as “ordinary” and “necessary.” Remember that you should have documentation for each write-off, like a receipt or bill from a utility company, just in case the IRS asks. 

Here's a detailed list of common tax deductions for hair salons: 

Salon-Specific Utilities 

Deduct electricity, water, and gas expenses – all the utilities necessary for running your salon. Because you constantly run salon equipment and taps, utility costs are usually high.

Employee Wages 

If your salon has a team of employees, the wages, tips, and bonuses you pay are fully deductible, as are employee benefits like health insurance. These deductions help manage payroll expenses and keep the business running smoothly. 

Insurance and Licenses 

Deduct the premiums you pay for business insurance, including workers' compensation and liability insurance. You can also write off costs for professional licenses, like state-required licensing fees. And if you or your staff have to travel for license renewals or exams, those expenses count, too.  

Education and Training 

If you're passionate about continuing education, sign up for those training sessions without fear – they’re tax-deductible. Plus, investing in the team's skills helps your salon offer higher-quality services, which in turn helps the business stay competitive.

Write off the costs of attending workshops, courses, and industry seminars alone or with your staff. Any associated travel expenses, including hotels and fuel, are also deductible. And you can write off educational subscriptions to journals and magazines. 

Beauty Supplies and Products 

All your everyday salon essentials are eligible for write-offs (and thank goodness for that because they’re expensive). These supplies and products include the following: 

• Shampoo
• Conditioner
• Hair color
• Hair removal wax 
• Styling gel 
• Hairspray 
• Scissors 
• Towels
• Caps 
• Rollers
• Foil
• Clamps
• Capes 

Professional Fees 

Hiring experts like accountants or lawyers for business-related support saves you time and energy – and since their services are tax-deductible, they save you money, too. 

Furniture and Equipment

Salon furniture and equipment are also essential for running the business, which means they’re deductible. They may include: 

• Salon chairs
• Chairback covers
• Shampoo stations
• Blow dryers 
• Curling and straightening irons
• Carts
• Trays
• Appliance holders 

Salon Software 

Subscriptions to specialized salon management software like GlossGenius are write-offs. This is especially helpful because GlossGenius is the perfect tool for tracking your finances throughout the year. You can manage expenses, store receipts, and calculate taxes all in one place.  

Health and Safety 

You can also write off costs for maintaining a safe and sanitary working environment. These include personal protective equipment (PPE), like masks and gloves, and cleaning supplies, like disinfectant sprays. 

Marketing and Advertising 

Deduct anything you spend on promoting the salon. Common advertising tax write-offs for salons include:  

• Website development
• TikTok and Instagram advertising
• Print media
• Newspaper, radio, and TV ads
• Business cards
• Flyers
• Outdoor signage
• Trade show fees  

Waste Disposal 

Fees for waste disposal services are also tax-deductible, like disposing of hazardous chemicals and sharp objects. For example, write off waste disposal fees for used razors. 

Client Drinks and Snacks 

Offering customers beverages and snacks like coffee, tea, and cookies makes a lasting positive impression. The best part? You can write these expenses off on your taxes.  

Try GlossGenius free for 14 days! 

What Isn’t Tax Deductible for Salon Owners?  

Knowing what you can't write off on your taxes is just as important as knowing what you can. You don’t want to end up deducting less than possible, especially if you plan to reinvest the savings into business goals.

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These personal expenses don't qualify as tax deductions for salon owners:   

• Home expenses: Expenses related to your home, like mortgage interest and property taxes, can’t be written off. Sometimes, you can claim a home office deduction if you have a qualified space in your home dedicated to business use, but you’re otherwise out of luck.
• Other personal expenses: You can only claim expenses directly tied to your salon, which means personal costs like a new top or your own haircut are off the table at tax time.
• Debt: If you have personal debt, such as credit cards and loans not used for the salon, you can’t deduct the interest on your taxes. 
• Travel costs: Personal vacations and related travel expenses don’t count. You can only claim business travel expenses. 
• Entertainment: Any activities that aren't directly related to the business are not tax deductible. Client meetings? Yes. Team bonding? Yes. Weekend cocktails with your high school friends? No. 
• Retirement accounts: Contributions to personal retirement accounts are not deductible as business expenses. These may include any funds you put into an individual retirement account (IRA). But if your business matches employee contributions to retirement accounts, then you can deduct the funds as an expense.
• Legal fees: Any legal fees you have to pay, like traffic tickets or fines, can't be deducted (yes, even if you parked outside your salon). Only business-related legal expenses qualify. 

How To Organize Your Salon Tax Write-Offs 

Tracking all of your salon's tax write-offs throughout the year maximizes deductions. Here's how to do it like a boss: 

Organize Your Records 

Save every receipt, invoice, and document related to your salon's expenses. To do this easily, use software like GlossGenius to upload receipts and categorize them with whatever labels you need. When you have all the necessary documentation at your fingertips, you can figure out tax deductions more efficiently.  

Separate Business and Personal Finances 

Use different bank accounts and credit cards to separate personal and business expenses. This way, you know which expenses are business-related instead of sifting through charges from personal coffee runs and nail appointments. This separation helps avoid confusion and makes sure all business expenses are traceable.  

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Categorize Expenses Properly 

Group your expenses into specific categories, like bills, supplies, and marketing. This simplifies identifying write-offs and makes it easier to track your spending, which is particularly helpful if you're trying to budget or cut costs. 

Consider Tax Credits 

Tax credits, which are different than tax write-offs, directly reduce the amount you owe in taxes. This provides more financial benefits than tax deductions by lowering your final tax bill. The IRS has a whole page for business tax credits, so check out the options.

Manage Your Salon Finances With GlossGenius 

GlossGenius is the ultimate all-in-one tool for lowering stress during tax season. With features like Finances, Loans, and Payroll, GlossGenius helps you track expenses and manage your salon's finances effortlessly. Our comprehensive platform lets you focus on making clients feel spectacular while we handle the details.

Try GlossGenius free for 14 days!  

To learn more about making the most of salon tax write-offs, explore our Tax Resource Center, learn about the importance of 1099 forms, or print our free workbook. And if you're ready to elevate your salon's financial management all around, sign up for a free 14-day trial with GlossGenius. 

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This information is provided for general educational purposes only. For legal, cybersecurity or compliance advice specific to your business or situation, please consult a professional.