Top 5 Tax Deductions Every Beauty Salon Owner Should Claim

Running a beauty salon takes creativity, customer service, and smart business decisions. With tax season here, it’s time to make sure you’re not missing out on valuable deductions that can save you money—and even help protect your salon in the process.

As an insurance industry expert, I often speak with salon owners who overlook key deductions—especially those related to business insurance, which can double as financial protection and a tax break. Let’s go over the top 5 tax deductions every beauty salon owner should be claiming this year.

1. Business Insurance Premiums

Why It’s Essential:
If you’re running a salon, you’re working closely with clients, equipment, and chemicals. Accidents happen—whether it’s a slip on the floor, a skin reaction to a product, or a styling mishap. That’s where insurance comes in.

Types of Insurance You Can Deduct:

• General Liability Insurance – Covers client injuries or property damage on your premises. 
• Professional Liability (Malpractice) Insurance – Protects against claims of negligence or service-related injuries. 
• Property Insurance – Covers your salon equipment and furnishings in case of fire, theft, or natural disasters. 
• Workers’ Compensation – Required in many states if you have employees. 

✅ Pro Tip: The IRS considers these premiums ordinary and necessary business expenses, so they are 100% deductible.

2. Salon Supplies and Products

Everything from scissors and clippers to shampoos and hair dye is fair game for deductions—as long as it’s used for your salon operations.

Deductible Supply Categories:

• Hair care products 
• Skin and nail treatments 
• Towels, capes, gloves 
• Cleaning and sanitizing supplies 
• Styling tools and accessories 

💡 Be sure to separate personal use from business use to stay IRS-compliant.

3. Rent, Utilities, and Home-Based Costs

Whether you lease a commercial salon space or operate from a home studio, you can deduct certain facility-related expenses.

If You Rent a Salon Space:

• Monthly rent 
• Water and electricity 
• Business internet and phone services 
• Required property insurance 

If You Work from Home:
You may be eligible for the home office deduction if your space is used exclusively for business.

🏠 Reminder: The simplified method allows for $5 per square foot, up to 300 square feet, for a quick and easy deduction.

4. Employee Wages and Contractor Payments

If you have stylists, receptionists, or assistants on payroll—or pay independent contractors—you can deduct those labor costs.

What to Track and Deduct:

• Wages and salaries 
• Employer-paid payroll taxes 
• Health insurance or benefits 
• 1099 contractor fees 

💼 Bonus Tip: Contractors may need their own liability insurance. Having a clear policy about that can protect your business from costly liability.

5. Marketing and Software Tools

Marketing your beauty salon is essential for growth—and many of the tools you use to do it are deductible.

Common Write-Offs Include:

• Social media advertising 
• Website hosting and design 
• Booking or POS systems (like Square or Vagaro) 
• Business cards, flyers, and local ads 

🧾 Pro Tip: Keep detailed records of all subscriptions, software fees, and digital tools.

Final Thoughts: Claim Deductions, Stay Insured, and Grow Confidently

As a salon owner, you juggle creativity and business savvy every day. By claiming these key tax deductions, you’re not only reducing your taxable income—you’re investing in the long-term health of your business.

And remember, business insurance isn’t just a deduction—it’s peace of mind. Protecting your salon, clients, and reputation is one of the smartest moves you can make.

👉 Need coverage fast? Get a free quote tailored to beauty professionals today, and make this tax season your most confident one yet. If you’re interested in learning more please visit buildbunker.com or contact us at support@buildbunker.com!