Top Tax Deductions for Beauty and Barber Business Owners

You know that rush when you spin a client around in the hair and they see the transformation you’ve been working on for the past two hours? That's the highlight of your day. (No pun intended). Realizing you don’t have enough money to make that quarterly tax payment? That stings worse than accidentally nicking someone with your shears.

Some beauty and barber professionals miss out on thousands of dollars in legitimate tax deductions every year. You're already juggling client appointments, inventory management, and keeping up with the latest trends—the last thing you need is to overpay on taxes.

Professional Tools and Equipment

Those $300 German steel shears sitting in your station? That new clipper set you splurged on last month? All of it can likely work double duty—making your clients look amazing while reducing your tax bill.

Hair cutting and styling essentials:

• Professional shears and thinning shears

• Clippers, trimmers, and replacement blades

• Combs, brushes, and sectioning clips

• Hair dryers, flat irons, and curling tools

• Color bowls, brushes, and application tools

Beauty and skincare equipment:

• Facial steamers and extraction tools

• LED light therapy devices

• Magnifying lamps and work lights

• Massage tables and hydraulic chairs

• Waxing equipment and warmers

• Nail files, buffers, and electric drills

Sanitation and safety gear:

• UV sterilizers and barbicide jars

• Disposable gloves, masks, and capes

• Hand sanitizer and disinfectants

• First aid supplies

Your work surfaces need regular maintenance, and most cleaning supplies, repairs, and replacements count as a business expense. Professional equipment servicing, sharpening services for your tools, and protective storage cases all qualify. The key is keeping receipts for everything—even those $15 comb sets add up to real tax savings.

Professional Products and Inventory

Walk into any salon or barbershop, and you'll likely see thousands of dollars worth of hair care products, colors, and styling supplies. Your product inventory typically represents one of your largest business expenses—and likely one of your biggest tax deductions.

Hair care and styling products:

• Shampoos, conditioners, and treatments

• Hair color, bleach, and developer

• Styling gels, mousses, and hairsprays

• Heat protectants and finishing products

Beauty and skincare supplies:

• Facial cleansers and toners

• Masks, serums, and moisturizers

• Makeup and cosmetics for services

• Eyelash extensions and adhesives

Waxing and hair removal:

• Hard and soft waxes

• Pre and post-wax treatments

• Waxing strips and spatulas

Nail care products:

• Base coats, polishes, and top coats

• Gel polishes and UV/LED curing systems

• Nail art supplies and decorations

• Cuticle oils and hand creams

You can usually deduct products you use during services and retail items you sell to clients. That case of expensive color you bought last month? It's working double duty—growing your business and reducing your taxes.

Track your inventory purchases monthly rather than scrambling at year-end. Digital receipts stored by category make tax time much easier.

Your Workspace Investment

Whether you rent a chair in someone else's salon, lease your own space, or work from a home studio, your workspace costs are likely deductible business expenses.

• Booth and chair rental: Your monthly booth rental fee is typically fully deductible, along with any percentage of utilities you pay. Many stylists don't realize they can also deduct setup costs like mirrors, storage units, and personal touches that make their space welcoming.

• Salon and shop leases: When you lease your own space, nearly all related costs qualify for deductions—monthly rent, utilities, business insurance, and property maintenance. Don't forget smaller expenses, such as water bottles for your waiting area or magazines for clients.

• Home studio setup: Working from home? You might qualify for the home office deduction. The space must be used regularly and exclusively for business—your dining room table, where you occasionally do hair doesn't count, but a dedicated room set up as a salon does.

Find out what’s eligible to deduct and step-by-step instructions on how to calculate your deduction. Here's what you need to know about the home office deduction →

Getting to Your Clients

Beauty and barber professionals are always on the move—traveling between locations, picking up supplies, or meeting clients. Those miles add up quickly, and they're likely tax-deductible.

When it comes to deducting vehicle expenses related to travel for work, you have two options:

• Standard Mileage Rate: Simply track your business miles and multiply by the IRS rate, which typically changes each year.

• Actual Expenses Method: Track all vehicle costs (gas, insurance, maintenance, payments) and deduct the percentage used for business.

Common business trips:

• Driving between multiple salon locations

• Picking up products from beauty supply stores

• House calls and mobile services

• Meeting clients at events or photoshoots

• Traveling to hair shows and education events

That weekly supply run to Sally Beauty or CosmoProf? Those miles count. Meeting a bride at her venue for a trial run? That's business travel. Even driving to the bank to make deposits qualifies.

Use a mileage tracking app or keep a simple log in your car. Write down the business purpose, starting location, destination, and miles driven. This documentation protects your deduction if questions arise later.

Beauty expenses = Tax savings

Professional tools, products, education, workspace costs—they're all likely deductible. Let Found do the expense tracking for you.

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The Found Mastercard Business debit card is issued by Piermont Bank pursuant to a license from Mastercard Inc.

Education and Professional Development

The beauty industry changes faster than fashion trends. What was cutting-edge last season might look dated today. Staying current with techniques, products, and trends isn't just good business—it's typically a legitimate tax deduction.

Continuing education costs:

• Cosmetology license renewals and fees

• Advanced cutting and coloring classes

• Business management workshops

• Product training seminars

Industry events and trade shows:

• Registration fees for beauty expos

• Travel costs to education events

• Accommodation during multi-day workshops

• Meals during business education (typically 50% deductible)

Online learning and subscriptions:

• Technique tutorial platforms

• Business coaching programs

• Industry magazine subscriptions

• Professional development apps

You probably made back the cost of your balayage workshop with the first three clients who booked the service. Education in this industry pays for itself fast, and reduces your taxes while doing it.

Clients seek out specialists. Microblading certification, advanced barbering techniques, chemical treatment training—these skills command higher prices and give you a competitive edge. Plus, every course fee and workshop registration likely counts as a business deduction.

Marketing Your Services

Referrals keep your chair full, and even though it might be your biggest driver of new clients, you can't rely on word-of-mouth alone. Every dollar you spend getting your work in front of new clients could reduce what you owe come tax time.

Digital marketing:

• Website hosting and domain registration

• Social media advertising on Instagram, Facebook, and TikTok

• Google Ads for local searches

• Online booking system fees

• Email marketing platforms

Traditional marketing:

• Business cards and brochures

• Promotional flyers and door hangers

• Local newspaper or magazine ads

Networking and partnerships:

• Booth fees at bridal shows or community events

• Referral fees paid to other professionals

• Partnership costs with wedding planners or photographers

Client retention marketing:

• Loyalty program setup costs

• Promotional products with your logo

• Client appreciation gifts

• Contest prizes and giveaways

When you boost that Instagram post of your latest color transformation, you're paying to reach potential clients who might never have found you otherwise. Those ad dollars usually count as marketing expenses on your tax return.

Insurance Protection

Your business faces unique risks every day. Client injuries, product reactions, or damage to expensive equipment can derail everything you've built. Insurance protects your business, and those premiums are likely deductible.

Essential coverage types:

• Professional liability insurance for service-related claims

• General liability coverage for client injuries

• Product liability protection for reactions or allergies

• Equipment coverage for theft or damage

• Business interruption insurance for unexpected closures

That monthly insurance premium might feel like just another bill, but it's protecting your livelihood while reducing your taxes. Think of it as paying yourself first—ensuring your business survives unexpected challenges.

Health insurance benefits: As a self-employed beauty professional, you might be able to deduct your health insurance premiums as a business expense. Eligibility depends on your business structure and profitability, so check with a tax professional about your specific situation.

Need coverage guidance? Find out which insurance types are essential and get step-by-step guidance on choosing coverage for your business.* Here's what you need to know about business insurance →

Building Your Team

Wedding season hits and suddenly you're booked solid for three months straight. Prom weekend arrives and you need four extra hands. A client wants a full bridal party but you can only do so much in one day. Meanwhile, your Instagram hasn't been updated in weeks, your books are a mess, and you're pretty sure you missed something important on your taxes last year. These are good problems to have—and reasons why you might need backup.

Support services:

• Assistant stylists for large wedding parties

• Freelance photographers for portfolio shoots

• Social media managers for consistent posting

• Bookkeepers for financial organization

• Virtual assistants for appointment scheduling

Professional services:

• Accountants for tax preparation

• Attorneys for contract reviews

• Business coaches for growth strategies

• Marketing consultants for promotional campaigns

Collaboration costs:

• Revenue sharing with other beauty professionals

• Referral fees for client recommendations

• Joint marketing expenses for group promotions

Did you know? Managing 1099s and contractor payments is even easier with Found's contractor management tools. There are no per-contractor fees, which means it's not even a business expense to deduct. Learn how to onboard, pay, and manage your 1099 contractors. →

Software and Technology

Your phone buzzes with appointment confirmations, your Square reader processes another payment, and you're uploading before-and-after shots to Instagram between clients. Technology runs your business now, whether you planned it that way or not.

Business software subscriptions:

• Appointment scheduling systems like Square or Booksy

• Point-of-sale systems for retail and service payments

• Inventory management for tracking products

• Accounting software for financial records

• Cloud storage for client photos and records

Technology and equipment:

• Business phone and service plans (business percentage)

• Tablets for client consultations and payments

• Professional cameras for before-and-after photos

• Ring lights and photography equipment

• Computer equipment for business management

Communication tools:

• Professional email accounts

• Website hosting and maintenance

• Video conferencing software for consultations

• Client communication platforms

When you use equipment for both personal and business purposes, you can only deduct the business percentage. If you use your phone 70% for work, you can deduct 70% of the bill. Keep track of your usage patterns for a few months to establish a reasonable percentage that you can defend.

Maximizing Your Tax Deductions

The beauty industry offers unique challenges and opportunities for tax deductions. You invest heavily in products, equipment, and education. And those are expenses that directly support your client services and business growth. Here are six ways to make sure your investments are tracked: 

• Use a dedicated business bank account for all professional expenses: Mixing personal and business purchases creates a nightmare at tax time. Your morning coffee? Personal. That $80 bottle of Olaplex? Business. Keep them separate.

• Save digital receipts organized by category: Take photos immediately and make sure they’re attached to specific expenses.

• Track business mileage with a smartphone app: Those supply runs to Sally Beauty add up to hundreds of deductible miles yearly. Keep track of your mileage.

• Document mixed-use expenses with clear percentages: Track actual usage for 2-3 months to establish defensible percentages. "I use my phone 80% for business" needs real data, not wishful thinking.

• Review expenses monthly to catch missed deductions: Don't wait until March to dig through a year's worth of receipts. Quick monthly reviews help you spot patterns and catch forgotten expenses.

• Save for quarterly taxes: Beauty businesses often have seasonal income fluctuations. Set aside 25-30% of your earnings for taxes to prevent cash flow problems when quarterly payments are due.

Your creativity and skill build client loyalty, but smart financial management builds a sustainable business. Understanding your deductions puts more money back into your business—money you can invest in better equipment, advanced education, or simply a more comfortable lifestyle.

Take Control of Your Beauty Business Finances

You didn't get into this business to spend hours sorting receipts or calculating mileage. You're here to make people feel confident and beautiful. But missing tax deductions costs you real money—money that could upgrade your station, fund that advanced color class, or simply give you breathing room during slow months. Found handles the financial busywork so you can focus on your clients. Built specifically for service professionals, Found can:

• Automatically track expenses and categorize purchases made with your Found card

• Organize receipt photos 

• Handle every aspect of 1099 contractor management, from W-9 collection to payments to generating and filing 1099-NEC forms.

• Track business mileage 

• Help you save for taxes with a specific Tax pocket

Stop leaving money on the table and start building a more profitable business. Found combines business banking, expense tracking, and tax tools in one platform designed for beauty professionals who want to maximize deductions while minimizing paperwork. 

Beauty expenses = Tax savings

Professional tools, products, education, workspace costs—they're all likely deductible. Let Found do the expense tracking for you.

Get started

The Found Mastercard Business debit card is issued by Piermont Bank pursuant to a license from Mastercard Inc.

The information on this website is not intended to provide, and should not be relied on, for tax advice. 

*Found partners with various providers to enable you to compare offers from participating institutions, such as lending, filing services, and insurance providers. Found is not a lender, a filing service, nor an insurance provider.