Tax Deductions for Independent Hairstylists 

KEY TAKEAWAYS: Understanding tax deductions for independent hair stylists can make a major difference in how much you keep from your hard-earned income. From rent and utilities to tools, education, and even mileage, many of your everyday business expenses may qualify as write-offs. By tracking your expenses and knowing what counts, you can lower your taxable income, stay compliant, and run a more financially confident beauty business.

One of the few guarantees in life? Taxes, of course. 

But, as a hairstylist,  how can you be sure how to tackle your taxes – and more importantly, how can you know what qualifies as tax-deductible versus what you can't claim for? 

After all, your skillset lies in the beauty world, not necessarily accounting! 

And, trust us, we don’t blame you for wanting to avoid dealing with taxes, but as April comes around, it is important as a business owner to get on top of your finances (and yes, that includes taxes).

If the thought of sorting out your taxes leaves you feeling a bit pale, don’t panic! You’re not alone. 

Here at Elite Beauty Society, we have you covered and can provide you with a bit of reassurance that you're doing the right thing. 

After all, business write-offs are the secret perk to being a business owner, right?

What Does “Tax Deductible” Really Mean? 

If something is tax-deductible, it means that any tax you pay on the item, you can then claim back. 

As the IRS says, “A deduction is an amount you subtract from your income when you file, so you don’t pay tax on it. By lowering your income, deductions lower your tax.”

This is the case for any business, and depending on your profession, the list of what’s tax-deductible can be long. What’s even more exciting is that, sometimes, there are some hidden gems on the list of things you can claim tax back. 

For example, you can typically deduct tax from a piece of business-specific equipment (depending on the cost) – you can often do this instead of accounting for the depreciation value.

Here are some examples of what you may be able to count as tax-deductible:

Workspace Expenses Count 

You need a place to work, and as one of the main parts of your business, your premises should be tax-deductible. Not only that, but you’ll be using utilities that come with a monthly payment.

So straight off the bat, you can look into:

• Salon rent 
• Booth space
• Electricity bills
• Water bills

So, if you’re worried about how much you’re paying to rent a chair, or that your electric bill seems extortionate, just know it can be reduced! 

And if you work from a space at home, you may be able to claim a deduction for a portion of your household utilities, if you can work out and provide support to show the relevant percentage of time spent using them for work versus personal living.

Your Equipment Is Probably Covered 

As a hairstylist, you will require a fair amount of tools. And if you’re a salon owner, you might be shelling out for equipment and consumables for your staff's use, too. So, what is considered tax-deductible when it comes to these sorts of things?

Possible Equipment Deductions:

• Curling irons
• Straighteners
• Blowdryers
• Scissors
• Brushes
• Mirrors
• CartsTrolley

Possible Consumable Deductions:

• Hair Colors
• Shampoos & Conditioners
• Styling Products
• Foils

Basically anything you can use to maintain a client's hair is considered tax-deductible. Even razors and perm lotion!

Now we know that these may not be the only tools you use in your business. You’ll have digital tools such as a CRM to manage your clients, a website to maintain, a phone line for inquiries, and potentially paid-for advertising, which is all fair game for a tax write-off.

Oh, and one more thing that falls into this category…clothing! Now we aren’t saying you can claim back tax on that Chanel shirt you’ve been (bravely) wearing to dye clients' hair, but you can claim back uniform and protective clothing costs, as long as they are reasonable. 

So,  that also includes aprons, towels, gloves, and even masks if you require them.

Administration, Training, & Continuing Education Counts Too 

Lastly, we are looking at the things that you need for your business that may not fit neatly anywhere else. 

This could be as simple as the generic administrative tools you need, or more specialized, such as paying exam fees and further professional training. 

Visiting tradeshows, attending networking events, or conferences? The ticket and travel costs can also be included as a write-off, which helps financially free up resources to invest back into your business, including attending more professional events and courses as time goes by. 

Not only that, but if you are spending time training to further your career as a hairstylist, you may qualify for the Lifetime Learning Credit. If you're enrolled in a program, this can be up to $2,000 per year to qualify for education expenses.

What the Mobile Pros Should Know About Tax Deductions for Independent Hair Stylists 

Are you a mobile hairstylist? Don’t worry, we didn’t forget about you! If you are using your vehicle to visit clients in their homes or traveling to style a bridal party for a wedding (and all other instances in between), you can claim on things like mileage for that travel. 

Make sure you keep a record of the distances you travel, especially if your car is used for personal errands as well as business.

Quick Tips About Tax Deductions for Independent Hair Stylists 

It sounds complicated, and to be honest, there’s a lot to think about with taxes. It takes research, practice, and consulting with experts to get it down, but here are a few easy tips to get you started on your tax deductions this year!

• Run through your business expenses, and make a note of everything you’ve paid tax on.
• If you’re self-employed, it's worth checking estimated tax payments using the Form 1040-ES. This will help cover your income and self-employment taxes.
• Consider reaching out to a professional tax advisor or accountant, who may be able to help you write off things you may not have considered to be tax-deductible.

Ultimately, taxes can seem scary and like a complex beast, but once you are clear on what does and doesn’t qualify, it's much easier to get your head around!

That's why - in addition to this helpful guide - we also created a free downloadable checklist with important tax deadlines, tax forms for independent stylists and what they're for, and helpful tips to stay organized for every tax season.

Download the free tax checklist here!

Liability Insurance is an Investment – But It’s Deductible, Too 

You’ve got the skills, the clients, and the receipts – now let’s make sure you’re protected, too. 

Liability insurance is one of those rare business expenses that’s both smart and potentially tax-deductible for independent, self-employed stylists!