Tax Tips Every Beauty Professional Should Know

Taxes are the thing nobody wants to talk about in the beauty industry. But if you're a stylist, barber, nail tech, lash artist, tattoo artist, or any independent beauty professional, understanding your taxes is the difference between keeping your hard-earned money and giving the IRS a surprise bonus.

Here's what you need to know — in plain English.

You're Self-Employed (Yes, Really)

If you rent a booth or station, work on commission without taxes withheld, or freelance, you're self-employed in the eyes of the IRS. That means nobody is withholding taxes for you. The money you take home looks like your full income, but roughly 25-30% of it belongs to Uncle Sam. If you spend it all, you'll owe big when tax season hits.

Set Aside 25-30% of Every Dollar

This is the golden rule. Every payment you receive, immediately move 25-30% into a separate account (or jar). This covers your federal income tax plus self-employment tax (which covers Social Security and Medicare). Yes, it feels like a lot. But it's money you were never supposed to spend.

Deductions Are Your Best Friend

As a self-employed beauty professional, you can deduct legitimate business expenses from your income before calculating taxes. Common deductions include:

• Booth, chair, or station rent — Your biggest expense and fully deductible
• Tools and supplies — Clippers, shears, combs, nail kits, tattoo equipment, capes, cleaning supplies
• Product costs — Anything you use on clients or sell
• Continuing education — Classes, workshops, certifications, licensing renewals
• Phone and internet — The business-use percentage
• Mileage — If you travel between locations or to supply stores
• Business insurance — Liability insurance premiums

Keep receipts for everything. A photo on your phone works. The more deductions you track, the less you owe.

Pay Quarterly (Avoid Penalties)

The IRS expects self-employed people to pay estimated taxes four times a year — in April, June, September, and January. If you wait until April to pay everything at once, you might owe penalties on top of your tax bill. Set calendar reminders and pay from your tax jar each quarter. It's less painful in small chunks than one massive payment.

Keep Business and Personal Separate

Open a separate bank account for your business income. This makes tracking income and expenses infinitely easier and looks much better if you ever get audited. It doesn't need to be fancy — a free checking account works fine.

Consider Getting Help

A good tax professional who understands self-employment can save you way more than they cost. Ask other professionals in your area for recommendations. Many offer flat-rate pricing for simple self-employment returns.

Taxes don't have to be scary. With the right system, they become just another part of running your business — handled, predictable, and stress-free.