What I check on every return
- Every credit you qualify for checked, including the Earned Income Credit and Child Tax Credit
- Suite or booth rent fully deducted
- Color, chemicals and extensions you buy for clients counted as business costs
- Tips separated so the new deduction applies
- Home salon space checked for the home office deduction
Deductions stylists often miss
- Salon suite or booth rent, and suite insurance
- Color, developer, chemicals, foils and back-bar products
- Hair extensions and wigs bought for client services
- Education classes, certifications and hair shows
- Instagram and Facebook ads, ring lights and photo gear
- Booking software, card fees and the business share of your phone
Houston and Texas rules that apply to you
- Sales tax: hair services aren't subject to Texas sales tax, but retail products and wigs you sell are. Retail sales need a free sales tax permit and 8.25% collected in Houston.
- Licensing: cosmetology and hair braiding licenses come from TDLR. Renewal fees and required continuing education are deductible.
- No Texas income tax: your return is federal only, but self-employment tax (15.3% for Social Security and Medicare) applies once your net self-employment income reaches $400.
New for 2026 returns (filed in 2027)
- No tax on tips: hairdressers, hairstylists and cosmetologists are on Treasury's list of tipped occupations, so reported tips can be deducted, up to $25,000 a year (2025 through 2028). For self-employed workers the deduction can't exceed your net profit from that work, and it phases out above $150,000 of income ($300,000 married filing jointly).
- 1099 forms: clients and companies now send a 1099-NEC only when they pay you $2,000 or more in 2026 (it was $600). Payment apps send a 1099-K only above $20,000 and 200 payments. All of your income is still taxable, form or no form.
What to bring
- Suite or booth rent receipts and lease
- Annual reports from Square, GlossGenius, Vagaro, StyleSeat, Cash App or Zelle
- Your record of cash income and cash tips
- Receipts for color, products, extensions and tools
- Ad spend reports from Instagram or Facebook
Common questions
I work out of a room in my home. Can I deduct it?
Often, yes. A space used regularly and only for your salon qualifies for the home office deduction, either a simple $5 per square foot (up to 300 square feet) or a share of your actual rent, utilities and insurance.
Are the extensions I buy for clients deductible?
Yes. Hair and products you buy to use on clients are part of your cost of doing business. Keep the receipts, and note which client service they were for when you can.
Where I work
I'm based in Houston and work with clients across Harris, Fort Bend, Montgomery and Brazoria counties, including Pasadena, Pearland, Sugar Land, Missouri City, Katy, Cypress, Spring, Humble, Baytown and The Woodlands. Meet in person in Houston or do everything online, in English, Spanish or Portuguese. I also work by video with clients in Beaumont & Port Arthur, Duncanville, DeSoto, Cedar Hill & Lancaster.
Get a flat-fee quote before I start
Book a free 15-minute call. I'll tell you what your return needs and what it costs. Fees are never a percentage of your refund.
Book a free callSee typical pricesOfficial sources: IRS: tips and overtime deductions ↗ · Texas Comptroller: taxable services ↗ · IRS: Home office deduction ↗
Updated October 2026 for 2026 returns filed in 2027. General information only, not tax advice for your situation. Rules and amounts can change; your situation is confirmed when your return is prepared.
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