Running a salon or barbershop is more than just cutting hair—it’s running a business. From cash flow to chair rentals, tax rules can get complicated. Here’s how salon owners and barbers can keep more of what they earn:

Track Every Dollar
Cash-heavy businesses are IRS red flags. Failing to report income, even accidentally, can lead to audits. Use software or simple systems to log every payment.

Deduct Supplies & Tools
Clippers, chairs, dryers, mirrors, products, and even uniforms may be deductible. If it’s essential for your shop, it likely qualifies as a business expense.

Know the Booth Renter Rules
Are your stylists employees or independent contractors? Misclassification can lead to payroll tax penalties. It’s crucial to set this up correctly.

Home Office & Marketing Deductions
If you handle bookkeeping, scheduling, or marketing from home, you may qualify for the home office deduction. Don’t forget business cards, flyers, or digital ads—those are deductible too.

Plan for Retirement
Many barbers and stylists don’t think about retirement. But self-employed professionals can open SEP IRAs or solo 401(k)s, which reduce taxable income while helping you build savings.

Takeaway: With a little planning, salon owners and barbers can cut tax bills significantly and reinvest the savings into growing their businesses.