Not in most US states — personal services are exempt. Exceptions include Hawaii, New Mexico, and South Dakota which tax most services.

Do I collect tax on shampoo I sell to clients?

Yes — retail product sales are taxable at the combined state + local rate, even when the service that came before it was non-taxable.

Who handles sales tax for booth renters?

Booth renters are typically independent contractors responsible for their own sales tax. The salon owner doesn't collect on their behalf. Contracts should make this explicit.

Do nail salons charge tax on manicures and pedicures?

Usually not at the state level unless the state taxes personal services, but local rules can differ. New York City is a notable example where beauty and nail-related personal services can be locally taxable.

Is there tax on pedicures and nail services?

In most states a pedicure, manicure, or nail service is a personal service and is not sales-taxable. The exceptions are the states that tax services broadly — Hawaii, New Mexico, and South Dakota — plus local rules such as New York City, where nail and beauty services can be locally taxable. Retail nail products (polish, kits, aftercare) are taxable in every state with a general sales tax.

What does a Pennsylvania salon charge sales tax on?

Pennsylvania guidance says barbers and beauticians pay tax on equipment, materials, and supplies; when supplies are resold to a customer, the full 6% sales tax is charged and collected.

Haircut, Nail, and Salon Sales Tax Guide

Updated 2026-07-01

Reviewed by Nexus by State research team using official state tax sources. Last reviewed 2026-07-01.

Are haircuts taxed? Do nail salons charge sales tax? See when salon services, pedicures, skincare, retail products, and booth renters are taxable.

Salon owners usually need two tax buckets: service charges such as haircuts, nails, facials, and pedicures are often not taxed unless the state or city taxes personal services, while retail products like shampoo, skincare, and nail polish are usually taxable. Booth renters add a separate permit and responsibility question that depends on the state and contract.

Are haircuts taxed? In most of the US, no. As of 2026-07-01, only three states — Hawaii, New Mexico, and South Dakota — charge sales tax on the salon service itself. In the other 42 states with a general sales tax, a haircut, manicure, pedicure, or facial is treated as an exempt personal service, while the retail products a salon sells (shampoo, skincare, nail polish) stay taxable. Five states — Alaska, Delaware, Montana, New Hampshire, and Oregon — have no statewide sales tax at all, so nothing a salon sells is taxed at the state level.

Services vs products

Personal services (haircuts, color, nails, facials, massages) are NON-taxable in most US states — they're labor, not goods. Retail products you sell (shampoo, styling product, skincare) ARE taxable in almost every state. Every time a stylist recommends a product, it should ring up on a separately-tracked taxable line.

A handful of states DO tax personal services: Hawaii (general excise tax on all services), New Mexico (gross receipts tax), South Dakota (all services taxable). In these states, treat service revenue the same as product revenue.

Are haircuts taxed? Are nail services and pedicures taxable?

In most states, the service charge for a haircut, manicure, or pedicure is not sales-taxable unless the state specifically taxes personal services. The retail product sitting next to that service is different: shampoo, conditioner, hair styling product, skincare, nail polish, and aftercare kits are tangible goods and are usually taxable.

City-level rules can override the simple state answer. New York's tax department treats beautician, barbering, and hair restoration services as exempt outside New York City, but subject to New York City's local sales tax when sold in the city. New York's nail-salon guidance points salons to separate manicure and pedicure bulletins, so do not assume the same rule applies statewide.

State examples salons should check first

Hawaii: general excise tax registration applies broadly to businesses earning income from services, retailing, rental activity, and other business activity in the state.
New Mexico: gross receipts tax can apply to services performed in New Mexico, not only sales of goods.
South Dakota: the state says sales tax applies to retail sales of tangible property, electronically transferred products, and services.
Pennsylvania: barbers and beauticians pay tax on equipment, materials, and supplies; if those supplies are resold to a customer, the full 6% sales tax is charged and collected.
New York City: hair and similar beauty services can be locally taxable even when the same services are exempt elsewhere in New York State.

Booth renters and independent stylists

If stylists rent chairs from your salon as independent contractors, they're each responsible for their own sales tax on product sales. But the salon owner may still be liable for the booth rental payment itself as a taxable rental in some states. Draft contracts carefully and have each renter register for their own sales tax permit.

Packages and memberships

If you sell a package (e.g., 10 facials for $500), the sale is usually non-taxable at purchase because it's a service package. Taxability at redemption follows the underlying service rules (non-taxable in most states).

Memberships that include discounts on products create a different question: the product portion is taxable when sold. Adjust pricing to make the service portion obvious.

Digital add-ons and online classes

Salons that sell prerecorded classes, downloadable care guides, or digital memberships should not reuse the haircut answer for those receipts — a download or streamed class can be taxed differently from both the tax-free service and the taxable shampoo. Check the buyer-state digital-goods rule before invoicing, starting with the highest-volume markets:

Then confirm the rule in each state where your online customers sit — taxability of streamed or downloaded content is not uniform across states.

Source notes checked 2026-05-10

Primary sources checked for this page: Hawaii Department of Taxation licensing guidance (date_retrieved: 2026-05-10), New Mexico Gross Receipts Tax overview (date_retrieved: 2026-05-10), South Dakota sales and use tax guidance (date_retrieved: 2026-05-10), Pennsylvania REV-717 Retailer's Information (date_retrieved: 2026-05-10), and New York Tax Bulletin TB-ST-60 (date_retrieved: 2026-05-10). See how Nexus by State ages and verifies source checks in our Methodology & Sources.

Multi-state salon retail checks

If your salon sells retail products in more than one market, compare neighboring state rules before assuming the same product line is handled the same way. Start with Florida vs Georgia sales tax, Indiana vs Kentucky sales tax, or Massachusetts vs New Jersey sales tax to check rates, nexus thresholds, and marketplace rules side by side.

Compliance checklist

Register for a sales tax permit if you sell any retail products (nearly always applies).
Configure POS to differentiate service lines (usually tax-free) from product lines (taxable).
Keep booth rental agreements clear — independent contractors register themselves.
Verify state-specific rules: Hawaii, New Mexico, South Dakota tax services; most others don't.

Frequently asked questions

Are haircuts taxed?: Not in most US states — personal services are exempt. Exceptions include Hawaii, New Mexico, and South Dakota which tax most services.
Do I collect tax on shampoo I sell to clients?: Yes — retail product sales are taxable at the combined state + local rate, even when the service that came before it was non-taxable.
Who handles sales tax for booth renters?: Booth renters are typically independent contractors responsible for their own sales tax. The salon owner doesn't collect on their behalf. Contracts should make this explicit.
Do nail salons charge tax on manicures and pedicures?: Usually not at the state level unless the state taxes personal services, but local rules can differ. New York City is a notable example where beauty and nail-related personal services can be locally taxable.
Is there tax on pedicures and nail services?: In most states a pedicure, manicure, or nail service is a personal service and is not sales-taxable. The exceptions are the states that tax services broadly — Hawaii, New Mexico, and South Dakota — plus local rules such as New York City, where nail and beauty services can be locally taxable. Retail nail products (polish, kits, aftercare) are taxable in every state with a general sales tax.
What does a Pennsylvania salon charge sales tax on?: Pennsylvania guidance says barbers and beauticians pay tax on equipment, materials, and supplies; when supplies are resold to a customer, the full 6% sales tax is charged and collected.