NYS Sales Tax For Beauty Salons and Barbershops

Welcome to the latest installment of our new monthly blog – 

“What are the rules for NYS Sales tax for my profession?”

Every month we will highlight another industry with a few of the broad guidelines to follow!  Our hope is not only to provide helpful information for the business owners but the consumers as well!

This month’s industry is:

                                                      Beauty Salons and Barbershops

Sales of beauty salon and barbershop services are not taxable.  Examples of these services are haircuts and colors, blow drying, hair extensions, hair restoration, etc.

If your shop is located in NYC the rules are different.   The services are exempt from NYS sales tax but not local NYC sales tax. They would be subject to 4.875% tax.  There is one exception – Hair restoration performed by a licensed physician is not taxable regardless of where the business is located.  

Does your shop sell shampoos, conditioners or other styling products directly to the consumer?  The sale of those products are taxable.  There is an exception here as well – the sale of dandruff preparations or a hair regrowth treatment used by those who have thinning or hair loss are not taxable. 

As a shop owner if you purchase shampoos, conditioners or other styling products for resale you will not pay sales tax.  You must have the appropriate ST-120 Resale Certificate.  If the products are not used for resale but rather for use in your shop then you are required to pay sales tax.  

The purchase of all equipment used in the shop are subject to sales tax.  Types of equipment included are scissors, combs, brushes, etc.

If you rent space from a shop you are not required to pay sales tax on the rental of that space.

Remember that this is just a broad guideline and more research might be necessary for more complicated issues.